Received by email:
File: NR14-10 San Albino Gold Deposit Resource Update (FINAL).doc
Suite 501 - 595 Howe Street
Vancouver, BC V6C 2T5
Tel: (604) 685-4655 Fax: (604) 685-4675
Toll Free: 1-888-685-4655
July 24, 2014
NEWS RELEASE - #14-10
TSX- V: GRR
GOLDEN REIGN INCREASES MINERAL RESOURCES AT SAN ALBINO GOLD DEPOSIT - INDICATED RESOURCES INCREASED BY 67%, INFERRED R
--->ESOURCES RISE 8.5%
Golden Reign Resources Ltd. (TSX-V: GRR) (the "Company" or "Golden Reign") is pleased to provide an updated mineral re
--->source estimate for the San Albino Gold Deposit on its 100% owned San Albino-Murra Property located in Nueva Segovia,
--->Nicaragua. The resource estimate was prepared by P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario, and updates
---> the previous resource estimate prepared by P&E in November 2012.
Resource Estimate Highlights:
a 67% increase in Indicated resources, from an initial 95,000 gold equivalent ("AuEq") ounces to 158,800 AuEq ounces a
--->t 5.97 g/t contained in 827,000 tonnes
a 8.5% increase in Inferred resources, from 805,000 AuEq ounces to 873,300 AuEq ounces at 7.97 g/t contained in 3,410,
--->000 tonnes
new El Jobo mineralized zone identified and included in open-pittable resources
the San Albino Gold Deposit is near-surface, within 300 metres vertical depth, and remains open along strike in both d
--->irections and at depth
Total Resources
Zone
Classification
Tonnes
Au (g/t)
Au ounces
Ag (g/t)
Ag ounces
AuEq (g/t)
AuEq Ounces
Oxide
Indicated
764,000
5.64
138,600
9.8
241,000
5.75
141,300
Inferred
857,000
4.72
130,100
7.5
208,000
4.81
132,500
Fresh
Indicated
63,000
8.50
17,200
11.7
24,000
8.67
17,500
Inferred
2,553,000
8.83
724,900
12.9
1,061,000
9.02
740,800
Total
Indicated
827,000
5.86
155,800
10.0
265,000
5.97
158,800
Inferred
3,410,000
7.80
855,000
11.6
1,269,000
7.97
873,300
Mineral Resource Estimate Notes and Parameters:
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty tha
--->t all or any part of the Mineral Resources estimated will be converted into Mineral Reserves;
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, soc
--->io-political, marketing, or other relevant issues, although the Company is not aware of any such issues;
The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been in
--->sufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncer
--->tain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
Gold Equivalent was calculated on the basis of 1 gram gold = 64 grams silver.
The 2014 mineral resource estimate update categorizes resources as either In-Pit (open-pittable) and Out-of-Pit (under
--->ground).
In-Pit Resources
Zone
Classification
Cut-off grade (g/t)
Tonnes
Au
(g/t)
Au
Ounces
Ag
(g/t)
Ag Ounces
Au Eq (g/t)
AuEq Ounces
Oxide
Indicated
0.23
750,000
5.70
137,500
9.9
239,000
5.81
140,200
Inferred
0.23
750,000
5.01
120,900
7.7
185,000
5.10
123,000
Fresh
Indicated
0.50
44,000
10.51
15,000
14.6
21,000
10.73
15,300
Inferred
0.50
286,000
8.07
74,300
8.6
79,000
8.20
75,500
Total
Indicated
794,000
5.97
152,500
10.2
260,000
6.09
155,500
Inferred
1,036,000
5.86
195,200
7.9
264,000
5.96
198,500
The Company's 2013 exploration program at the San Albino Gold Deposit was designed to de-risk the project by upgrading
---> the quality of the In-Pit resource through additional infill and step-out drilling, and trenching. In all, a further
--->6,160.5 metres were cored in 73 drill holes, including 236.9 metres across 12 drill holes utilized for metallurgical t
--->est work. Trenching comprised 24 trenches, 28 exploration pits and 4 road cuts across 3,945.0 metres.
The program was highly successful, increasing Indicated resources by 113% from 70,000 AuEq ounces to 155,500 AuEq ounc
--->es grading 6.09 g/t.
Drilling and trenching were focused on the extensions of near-surface, shallow-dipping, high grade open-pittable miner
--->alized zones situated within 100 metres vertical depth. This resulted in the discovery of a new zone, El Jobo, which
--->lies at surface, structurally above the San Albino zone. There is virtually no waste stripping anticipated for mining
--->of the El Jobo zone.
Four mineralized zones - El Jobo, San Albino, Naranjo and Arras - comprise the open-pittable resources which are chara
--->cterized as either oxide or fresh rock. The In-Pit oxide zone has a 0.23 g/t AuEq cut-off grade. The mining costs fo
--->r this zone are anticipated to be significantly lower, as drilling and blasting will not be required and the strip rat
--->io is expected to be low. Notably, the lower cut-off grade for the oxide zone did not significantly increase the tota
--->l gold content due to the well constrained block model (see Resource Estimate Sensitivities tables on website). The f
--->resh rock zone has an AuEq cut-off grade of 0.5 g/t.
The open pit resource model was designed using a Whittle pit optimization model to ensure application of a reasonable
--->stripping ratio and economic assumptions. Parameters utilized in the mineral resource estimate calculation update and
--->pit optimizations include:
Au recovery - oxide zone
91%
Au recovery - fresh rock zone
95%
Ag recovery - oxide zone
59%
Ag recovery - fresh rock zone
85%
Density - oxide zone
2.51 t/m3
Density - fresh rock zone
2.74 t/m/3
Pit slopes
45 degrees
Pit depth, maximum
100 metres
Out-of-Pit Resources
Zone
Classification
Cut-off grade (g/t)
Tonnes
Au
(g/t)
Au
Ounces
Ag
(g/t)
Ag Ounces
Au Eq (g/t)
AuEq Ounces
Oxide
Indicated
1.5
14,000
2.43
1,100
5.1
2,000
2.49
1,100
Inferred
1.5
107,000
2.69
9,300
6.5
22,000
2.77
9,500
Fresh
Indicated
1.5
19,000
3.72
2,200
5.0
3,000
3.79
2,300
Inferred
1.5
2,267,000
8.93
650,600
13.5
982,000
9.13
665,200
Total
Indicated
33,000
3.17
3,300
5.0
5,000
3.24
3,400
Inferred
2,374,000
8.65
659,900
13.2
1,004,000
8.84
674,700
The San Albino resource model now consists of four shallow dipping, high grade, narrow vein systems over a strike leng
--->th of 670 metres, down dip extension of 905 metres, with a minimum true width of one metre and average true width of 2
--->.6 metres. Gold grade capping varied from no capping to 85 g/t depending on the vein system. All silver assays were ca
--->pped at 90 g/t. Inverse distance cubed grade interpolation was on 2m x 2m x 6m blocks utilizing Gemcom modeling softwa
--->re. 223 drill holes and 92 trenches at the San Albino Gold Deposit were utilized in the resource estimate calculation.
The updated mineral resource estimate for the San Albino Gold Deposit was prepared by P&E in accordance with the Canad
--->ian Securities Administrators ("CSA") National Instrument 43-101 ("NI 43-101") and resources have been estimated using
---> the Canadian institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, De
--->finitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
The mineral resource estimates in this news release were prepared by Eugene Puritch, P.Eng. and Yungang Wu, MSc, P.Geo
--->. of P&E, each an independent qualified person, as defined by NI 43-101. Mr. Puritch has reviewed and approved the co
--->ntents of this news release.
Located at the southern end of a 20 kilometre long mineralized trend outlined and defined by Golden Reign as the Coron
--->a de Oro Gold Belt, the San Albino Gold Deposit is the first of the five areas slated for development by the Company.
---> The Company recently completed a US$15 million gold streaming arrangement with Marlin Gold Mining Ltd. (TSX-V: MLN),
--->which will fund the construction and development of the San Albino Gold Deposit (see news release dated July 11, 2014)
--->.
Quality Assurance
The Company's rigorous QA/QC program utilizes best industry practices, involving insertion of appropriate standards, b
--->lanks and field duplicates. All drill holes were sampled on at most a 1.0 metre interval within the mineralized zones,
---> with drill core split on site and one half then being transported to the Inspectorate America Corporation ("Inspector
--->ate"), a certified USA based laboratory (UKAS, NAMAS, STERLAB, ISO 17025), preparation facility in Managua. The sample
--->s were then transferred to Inspectorate's analytical laboratory in Richmond, British Columbia, Canada. Duplicate sampl
--->es were also sent to Acme Analytical Laboratories Ltd. in Vancouver, British Columbia, Canada, for comparative analysi
--->s. Gold and silver analyses were carried out by fire assay. In addition, for samples assaying greater than 1 g/t gold
--->, check assays were also carried out by the metallic screen method to verify high-grade sample assays obtained by fire
---> assay and to minimize gold nugget effect.
Golden Reign's Qualified Person
John M. Kowalchuk, P.Geo., a geologist and Company qualified person (as defined under NI 43-101) has read and approved
---> the technical information contained in this news release on behalf of the Company.
On behalf of the Board,
"Kim Evans"
Kim Evans, CGA
President & CEO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX-V: GRR) mineral exploration company engaged in exploring the San
---> Albino-Murra Property and the El Jicaro Property, both of which are located in Nueva Segovia, Nicaragua.
The Company's prime objective is to bring its San Albino Gold Deposit into production quickly and efficiently, buildin
--->g cash flow to further advance a number of its other highly prospective exploration targets.
The Company's land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical m
--->ines and workings exist within the Corona de Oro Gold Belt, which is approximately 3 kilometres wide by 20 kilometres
--->long and spans the entirety of the Company's land package.
For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com.
Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve k
--->nown and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and uncer
--->tainties which could cause actual events or results to differ materially from those reflected in the forward-looking s
--->tatements, including, without limitation, risks and uncertainties relating to political risks involving the Company's
--->exploration and development of mineral properties interests, the inherent uncertainty of cost estimates and the potent
--->ial for unexpected costs and expenses, potential mineral recovery processes and rates, commodity price fluctuations, t
--->he inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such informa
--->tion contained herein represents management's best judgment as of the date hereof, based on information currently avai
--->lable.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
--->TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
File: NR14-10 San Albino Gold Deposit Resource Update (FINAL).pdf
Suite 501 - 595
--->Howe Street
Vancouver, BC
---> V6C 2T5
Tel: (604) 685-4655 Fax: (604)
--->685-4675
Toll Free: 1-8
--->88-685-4655
July 24, 2014
NEWS RELEASE - #14-10
TSX- V: GRR
GOLDEN REIGN INCREASES MINERAL RESOURCES AT SAN ALBINO GOLD DEPOSIT -
INDICATED RESOURCES INCREASED BY 67%, INFERRED RESOURCES RISE 8.5%
Golden Reign Resources Ltd. (TSX-V: GRR) (the "Company" or "Golden Reign") is pleased to provide an
updated mineral resource estimate for the San Albino Gold Deposit on its 100% owned San Albino-Murra
Property located in Nueva Segovia, Nicaragua. The resource estimate was prepared by P&E Mining Consultants
Inc. ("P&E") of Brampton, Ontario, and updates the previous resource estimate prepared by P&E in November
2012.
Resource Estimate Highlights:
a 67% increase in Indicated resources, from an initial 95,000 gold equivalent ("AuEq") ounces to
158,800 AuEq ounces at 5.97 g/t contained in 827,000 tonnes
a 8.5% increase in Inferred resources, from 805,000 AuEq ounces to 873,300 AuEq ounces at 7.97 g/t
contained in 3,410,000 tonnes
new El Jobo mineralized zone identified and included in open-pittable resources
the San Albino Gold Deposit is near-surface, within 300 metres vertical depth, and remains open along
strike in both directions and at depth
Total Resources
Zone Classification Tonnes Au (g/t) Au ounces Ag (g/t) Ag ounces AuEq (g/t)
---> AuEq Ounces
Indicated 764,000 5.64 138,600 9.8 241,000 5.75
---> 141,300
Oxide
Inferred 857,000 4.72 130,100 7.5 208,000 4.81
---> 132,500
Indicated 63,000 8.50 17,200 11.7 24,000 8.67
---> 17,500
Fresh
Inferred 2,553,000 8.83 724,900 12.9 1,061,000 9.02
---> 740,800
Indicated 827,000 5.86 155,800 10.0 265,000 5.97
---> 158,800
Total
Inferred 3,410,000 7.80 855,000 11.6 1,269,000 7.97
---> 873,300
Mineral Resource Estimate Notes and Parameters:
1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no cert
--->ainty that all or
any part of the Mineral Resources estimated will be converted into Mineral Reserves;
2. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, tax
--->ation, socio-
political, marketing, or other relevant issues, although the Company is not aware of any such issues;
3. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there h
--->as been insufficient
exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncert
--->ain if further
exploration will result in upgrading them to an Indicated or Measured mineral resource category.
4. Gold Equivalent was calculated on the basis of 1 gram gold = 64 grams silver.
The 2014 mineral resource estimate update categorizes resources as either In-Pit (open-pittable) and Out-of-Pit
(underground).
In-Pit Resources
Cut-off Au Au Ag Ag Au Eq AuEq
Zone Classification Tonnes
grade (g/t) (g/t) Ounces (g/t) Ounces (g/t) Ounces
Indicated 0.23 750,000 5.70 137,500 9.9 239,000 5.81 140,200
Oxide
Inferred 0.23 750,000 5.01 120,900 7.7 185,000 5.10 123,000
Indicated 0.50 44,000 10.51 15,000 14.6 21,000 10.73 15,300
Fresh
Inferred 0.50 286,000 8.07 74,300 8.6 79,000 8.20 75,500
Indicated 794,000 5.97 152,500 10.2 260,000 6.09 155,500
Total
Inferred 1,036,000 5.86 195,200 7.9 264,000 5.96 198,500
The Company's 2013 exploration program at the San Albino Gold Deposit was designed to de-risk the project
by upgrading the quality of the In-Pit resource through additional infill and step-out drilling, and trenching. In
all, a further 6,160.5 metres were cored in 73 drill holes, including 236.9 metres across 12 drill holes utilized for
metallurgical test work. Trenching comprised 24 trenches, 28 exploration pits and 4 road cuts across 3,945.0
metres.
The program was highly successful, increasing Indicated resources by 113% from 70,000 AuEq ounces to
155,500 AuEq ounces grading 6.09 g/t.
Drilling and trenching were focused on the extensions of near-surface, shallow-dipping, high grade open-
pittable mineralized zones situated within 100 metres vertical depth. This resulted in the discovery of a new
zone, El Jobo, which lies at surface, structurally above the San Albino zone. There is virtually no waste
stripping anticipated for mining of the El Jobo zone.
Four mineralized zones � El Jobo, San Albino, Naranjo and Arras � comprise the open-pittable resources which
are characterized as either oxide or fresh rock. The In-Pit oxide zone has a 0.23 g/t AuEq cut-off grade. The
mining costs for this zone are anticipated to be significantly lower, as drilling and blasting will not be required
and the strip ratio is expected to be low. Notably, the lower cut-off grade for the oxide zone did not
significantly increase the total gold content due to the well constrained block model (see Resource Estimate
Sensitivities tables on website). The fresh rock zone has an AuEq cut-off grade of 0.5 g/t.
The open pit resource model was designed using a Whittle pit optimization model to ensure application of a
reasonable stripping ratio and economic assumptions. Parameters utilized in the mineral resource estimate
calculation update and pit optimizations include:
Au recovery � oxide zone 91%
Au recovery � fresh rock zone 95%
Ag recovery � oxide zone 59%
Ag recovery � fresh rock zone 85%
Density � oxide zone 2.51 t/m3
Density � fresh rock zone 2.74 t/m/3
Pit slopes 45 degrees
Pit depth, maximum 100 metres
Out-of-Pit Resources
Cut-off Au Au Ag Ag Au Eq AuEq
Zone Classification Tonnes
grade (g/t) (g/t) Ounces (g/t) Ounces (g/t) Ounces
Indicated 1.5 14,000 2.43 1,100 5.1 2,000 2.49 1,100
Oxide
Inferred 1.5 107,000 2.69 9,300 6.5 22,000 2.77 9,500
Indicated 1.5 19,000 3.72 2,200 5.0 3,000 3.79 2,300
Fresh
Inferred 1.5 2,267,000 8.93 650,600 13.5 982,000 9.13 665,200
Indicated 33,000 3.17 3,300 5.0 5,000 3.24 3,400
Total
Inferred 2,374,000 8.65 659,900 13.2 1,004,000 8.84 674,700
The San Albino resource model now consists of four shallow dipping, high grade, narrow vein systems over a
strike length of 670 metres, down dip extension of 905 metres, with a minimum true width of one metre and
average true width of 2.6 metres. Gold grade capping varied from no capping to 85 g/t depending on the vein
system. All silver assays were capped at 90 g/t. Inverse distance cubed grade interpolation was on 2m x 2m x
6m blocks utilizing Gemcom modeling software. 223 drill holes and 92 trenches at the San Albino Gold Deposit
were utilized in the resource estimate calculation.
The updated mineral resource estimate for the San Albino Gold Deposit was prepared by P&E in accordance
with the Canadian Securities Administrators ("CSA") National Instrument 43 -101 ("NI 43-101") and resources
have been estimated using the Canadian institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards
on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on
Reserve Definitions and adopted by CIM Council.
The mineral resource estimates in this news release were prepared by Eugene Puritch, P.Eng. and Yungang Wu,
MSc, P.Geo. of P&E, each an independent qualified person, as defined by NI 43-101. Mr. Puritch has reviewed
and approved the contents of this news release.
Located at the southern end of a 20 kilometre long mineralized trend outlined and defined by Golden Reign as
the Corona de Oro Gold Belt, the San Albino Gold Deposit is the first of the five areas slated for development
by the Company. The Company recently completed a US$15 million gold streaming arrangement with Marlin
Gold Mining Ltd. (TSX-V: MLN), which will fund the construction and development of the San Albino Gold
Deposit (see news release dated July 11, 2014).
Quality Assurance
The Company's rigorous QA/QC program utilizes best industry practices, involving insertion of appropriate
standards, blanks and field duplicates. All drill holes were sampled on at most a 1.0 metre interval within the
mineralized zones, with drill core split on site and one half then being transported to the Inspectorate America
Corporation ("Inspectorate"), a certified USA based laboratory (UKAS, NAMAS, STERLAB, ISO 17025),
preparation facility in Managua. The samples were then transferred to Inspectorate's analytical laboratory in
Richmond, British Columbia, Canada. Duplicate samples were also sent to Acme Analytical Laboratories Ltd.
in Vancouver, British Columbia, Canada, for comparative analysis. Gold and silver analyses were carried out
by fire assay. In addition, for samples assaying greater than 1 g/t gold, check assays were also carried out by the
metallic screen method to verify high-grade sample assays obtained by fire assay and to minimize gold nugget
effect.
Golden Reign's Qualified Person
John M. Kowalchuk, P.Geo., a geologist and Company qualified person (as defined under NI 43-101) has read
and approved the technical information contained in this news release on behalf of the Company.
On behalf of the Board,
"Kim Evans"
Kim Evans, CGA
President & CEO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX-V: GRR) mineral exploration company engaged in exploring the
San Albino-Murra Property and the El Jicaro Property, both of which are located in Nueva Segovia, Nicaragua.
The Company's prime objective is to bring its San Albino Gold Deposit i nto production quickly and efficiently, buildi
--->ng
cash flow to further advance a number of its other highly prospective exploration targets.
The Company's land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical
mines and workings exist within the Corona de Oro Gold Belt, which is approximately 3 kilometres wide by 20 kilometres
long and spans the entirety of the Company's land package.
For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com.
Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve
known and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ materially from those reflected in the forward-look
--->ing
statements, including, without limitation, risks and u ncertainties relating to political risks involving the Company'
--->s
exploration and development of mineral properties interests, the inherent uncertainty of cost estimates and the potent
--->ial for
unexpected costs and expenses, potential mineral recovery processes and rates, commodity price fluctuations, the inabi
--->lity
or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information containe
--->d
herein represents management's best judgment as of the date hereof, based on i nformation currently available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
---> TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
© 2024 Canjex Publishing Ltd. All rights reserved.