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Press release from Marketwire

Golden Reign Resources Ltd.: Trenching Returns 18.0 Metres of 3.40 g/t Gold and 7.0 g/t Silver in Phyllites; Second Discovery of Massive Sulphide Mineralization

Tuesday, February 05, 2013

Golden Reign Resources Ltd.: Trenching Returns 18.0 Metres of 3.40 g/t Gold and 7.0 g/t Silver in Phyllites; Second Discovery of Massive Sulphide Mineralization12:05 EST Tuesday, February 05, 2013VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 5, 2013) -Golden Reign Resources Ltd. (TSX VENTURE:GRR) (the "Company" or "Golden Reign") is pleased to provide additional results from the Intermediate Area in the Southern District of its San Albino-Murra Property (the "Property") located in Nueva Segovia, Nicaragua.The Intermediate Area has a strike length of 1,000 metres and is located approximately 2 kilometres south of the Company's San Albino Gold Deposit and 500 metres south of the San Pablo Area, for which trenching and exploration pit results were released on January 24, 2012. Golden Reign plans to conduct additional work, with the aim of geologically connecting the San Pablo and Intermediate areas.Continued exploration of the Intermediate Area in 2012 included the excavation of two exploration pits. This work was a follow-up to the comprehensive trenching program completed in 2011 that consisted of 13 trenches across 417 metres. Intermediate Area Exploration Findings include: High-grade, near-surface quartz vein structure traced strike length of 1,000 metres, open in both directions and down-dip Second discovery of heavily mineralized sulphide masses (bodies) intercalcated with quartz veins, with the first situated only 500 metres to the north in the San Pablo Area High-grade gold mineralization is distributed in the country rock, not restricted solely to the mineralized quartz veins Intermediate Area Exploration Results include: High-grade, near-surface mineralization includes 5.3 metres of 48.28 g/t gold and 21.0 g/t silver intersected in trench LC11-TR-10, which includes 2.0 metres of 118.91 g/t gold and 40.2 g/t silver 5 samples from mineralized sulphide masses within exploration pit EP-INT11-TR-03 returned an average of 15.93 g/t gold and 20.3 g/t silver over a true thickness of 1.8 metres Continuous sampling of the host rock (phyllites) in trenches returned high-grade gold mineralization: LC11-TR-26 returned 18.0 metres of 3.40 g/t gold and 7.0 g/t silver LC11-TR-15 returned 2.0 metres (vertical sample) of 62.96 g/t gold and 19.2 g/t silver Intermediate Exploration PitsIn 2012, two exploration pits (see Table 1 below and attached map) were excavated to expose the mineralized veins intersected by trenching along strike and down dip in trenches INT11-TR-03 and LC11-TR-10. Pit samples collected along the strike and dip of the veins returned values ranging from 0.26 g/t to 30.88 g/t gold and 1.53 g/t to 122.40 g/t gold for pits EP-INT11-TR-03 and EP-LC11-TR-10, respectively. Golden Reign also tested the true thickness of the veins, which returned 1.80 metres averaging 15.93 g/t gold and 1.62 metres averaging 2.52 g/t gold for trenches INT11-TR-03 and LC11-TR-10, respectively.The exploration pit at INT11-TR-03 exposed a structurally controlled, heavily mineralized sulphide mass (body) intercalated with quartz veins with similar mineralization. This marks the second discovery of mineralized sulphide masses; the prior discovery was at exploration pit SP11-TR-02 within the San Pablo Zone, situated 500 metres north. The sulphide masses in both areas carry significant gold values and are very similar in style of mineralization. Additional exploration work will be conducted to test the Company's theory that these are conjoined and represent one continuous heavily mineralized sulphide mass system. Exploration pit EP-LC11-TR-10, representing the southwest extension of the Intermediate Area, exposed the true thickness of the highly mineralized vein averaging 1.62 metre of 2.52 g/t Au and 6.0 g/t Ag. Systematic sampling along the strike and dip of the vein returned extremely high gold and silver values ranging from 1.53 to 122.40 g/t Au and 2.9 to >100 g/t Ag. A bulk sample will be collected to more accurately evaluate the grade of this target. Only one sample was collected from the surrounding country rock (phyllites), which returned 0.12 g/t Au and 1.1 g/t Ag. TrenchingTrenching has outlined 4 parallel NE/SW trending structurally controlled mineralized zones (see attached map) ranging from 300 to 1,500 metres in length, located approximately 1.5 kilometres south of the San Albino Gold Deposit and covering a 2.5 square kilometre area. The Intermediate Area, outlined by 13 trenches, has been traced at surface over a strike length of approximately 1 kilometre, remaining open along strike in both directions and down-dip. A total of 353 samples were collected from 13 trenches (see Table 2 below) spaced approximately 50 metres apart (see news releases dated April 12, 2011, May 25, 2011 and October 20, 2011). Two trenches (LC11-TR-27 and LC11-TR-28) were not deep enough to expose the vein. A further two trenches were completed at and near Mina Francisco (see news release dated September 24, 2012), which appears to represent the northeast extension of the zone, with the best intervals returning:•SAM-12-TR-078.0 metres of 4.28 g/t gold and 12.6 g/t silver,comprised of4.0 metres of 3.29 g/t gold and 18.0 g/t silver from quartz vein, and4.0 metres of 5.28 g/t gold and 7.3 g/t silver from host rock (phyllites)•SAM-12-TR-081.0 metre of 4.52 g/t gold and 11.1 g/t silver from quartz vein, and2.0 metres of 7.44 g/t gold and 6.5 g/t silver from host rock (phyllites)The near-surface Mina Francisco has now been exposed for 12 metres in strike length and 7 metres down-dip at a depth of only 5 metres from surface. Underground sampling, also completed in 2012, returned an average thickness of 1.56 metres grading 13.04 g/t gold and 22.7 g/t silver, including: •2.0 metres of 33.35 g/t gold and 42.8 g/t silver•2.0 metres of 26.45 g/t gold and 30.7 g/t silver•2.0 metres of 23.87 g/t gold and 40.8 g/t silverHighlights from trenching completed to date include:•INT11-TR-018.2 metres (from 9.0 m to 17.2 m) averaging 20.64 g/t gold and 26.87 g/t silverincluding5.2 metres (from 9.0 m to 14.2 m) averaging 28.69 g/t gold and 38.8 g/t silver•INT11-TR-028.0 metres (from 13.0 m to 21.0 m) averaging 4.37 g/t gold, minor silverincluding3.0 metres (from 18.0 m to 21.0 m) averaging 8.83 g/t gold, minor silverand5.0 metres (from 30.0 m to 35.0 m) averaging 9.44 g/t gold and 9.9 g/t silverand1.0 metre (from 37.0 to 38.0 m) averaging 32.87 g/t gold and 51.5 g/t silver•INT11-TR-0312.8 metres (from 7.0 m to 19.8 m) averaging 16.05 g/t gold and 9.9 g/t silverincluding3.0 metres (from 11.0 m to 14.0 m) averaging 40.97 g/t gold and 23.7 g/t silverand1.8 metres (from 17.0 m to 18.8 m) averaging 42.33 g/t gold and 15.9 g/t silver•INT11-TR-041.0 metre (from 4.0 m to 5.0 m) averaging 4.52 g/t gold, minor silverand2.0 metres (from 19.0 m to 21.0 m) averaging 3.11 g/t gold and 9.1 g/t silver•LC11-TR-105.3 metres averaging 48.28 g/t gold and 20.98 g/t silverincluding2.0 metres averaging 118.91 g/t gold and 40.20 g/t silver•LC11-TR-141.0 metre of 2.25 g/t gold and minor silverand1.0 metre of 0.88 g/t gold and minor silver•LC11-TR-151.0 metre of 2.00 g/t gold and minor silverand1.0 metre of 2.47 g/t gold and 1.20 g/t silver•LC11-TR-168.4 metres of 6.53 g/t gold and 6.9 g/t silverincluding3.0 metres of 14.44 g/t gold and 13.1 g/t silverComprehensive and detailed sampling of the country rock (phyllites) has been completed. The significant finding is that gold mineralization is distributed in the host rock containing quartz veinlets, occasionally represented as a quartz stockwork or breccia, and is not restricted solely to the mineralized quartz veins, as previously believed. Previously unreleased results from trench LC11-TR-26, as example, returned 18.0 metres averaging 3.40 g/t gold and 7.0 g/t silver in the country rock.Other highlights from trenching completed in country rock:•INT11-TR-012.0 metres averaging 26.89 g/t gold and 35.7 g/t silverand2.0 metres averaging 9.76 g/t gold and 8.95 g/t silver•INT11-TR-029.0 metres averaging 4.16 g/t gold and 4.4 g /t silver•INT11-TR-034.0 metres averaging 2.70 g/t gold and 1.5 g/t silverand2.0 metres averaging 10.76 g/t gold and 12.5 g/t silververtical samples returned gold values in a range from 1.02 to 3.15 g/t gold•INT11-TR-041.0 metre averaging 4.52 g/t gold and 0.9 g/t silver•LC11-TR-15vertical sample returned 2.0 metres of 62.96 g/t gold and 19.2 g/t silverandvertical sample returned 2.0 metres of 3.53 g/t gold and 7.8 g/t silver•LC11-TR-16:1.0 metres of 3.16 g/t gold and 4.1 g/t silverfive vertical samples, 1.0 metre wide, each averaging 7.49 g/t gold and 6.9 g/t silverTable 1 - 2012 EXPLORATION PIT SAMPLESExploration PitSample #Width (m)Sample typeRock typeAu (g/t)Ag (g/t)EP-INT11-TR-031741091.00DipHeavy sulphide mineralized quartz vein21.1822.4EP-INT11-TR-031741101.00DipHeavy sulphide mineralized quartz vein20.0634.3EP-INT11-TR-031741111.00DipHeavy sulphide mineralized quartz vein17.7742.6EP-INT11-TR-031741121.00DipHeavy sulphide mineralized quartz vein0.310.5EP-INT11-TR-031741131.00DipHeavy sulphide mineralized quartz vein0.261.0EP-INT11-TR-031741141.00DipHeavy sulphide mineralized quartz vein13.9710.0EP-INT11-TR-031741151.00DipHeavy sulphide mineralized quartz vein20.5022.9EP-INT11-TR-031741161.00DipHeavy sulphide mineralized quartz vein6.2211.3EP-INT11-TR-031741171.50DipHeavy sulphide mineralized quartz vein8.0810.2EP-INT11-TR-031741182.00True ThicknessHeavy sulphide mineralized quartz vein9.3414.6EP-INT11-TR-031741192.00True ThicknessHeavy sulphide mineralized quartz vein22.3422.2EP-INT11-TR-031741202.00True ThicknessHeavy sulphide mineralized quartz vein14.9220.5EP-INT11-TR-031741221.50True ThicknessHeavy sulphide mineralized quartz vein0.904.3EP-INT11-TR-031741231.50True ThicknessHeavy sulphide mineralized quartz vein32.5241.1EP-INT11-TR-031741241.50StrikeHeavy sulphide mineralized quartz vein4.282.3EP-INT11-TR-031741251.50StrikeHeavy sulphide mineralized quartz vein16.3818.3EP-INT11-TR-031741262.00StrikeHeavy sulphide mineralized quartz vein11.484.7EP-INT11-TR-031741272.00StrikeHeavy sulphide mineralized quartz vein15.3017.2EP-INT11-TR-031741282.00StrikeHeavy sulphide mineralized quartz vein5.7121.0EP-INT11-TR-031741292.00StrikeHeavy sulphide mineralized quartz vein30.8829.5EP-INT11-TR-031741301.5StrikeHeavy sulphide mineralized quartz vein11.8321.8EP-INT11-TR-031741311.5StrikeHeavy sulphide mineralized quartz vein15.5717.7EP-LC11-TR-10727381.00DipPhyllites0.121.1EP-LC11-TR-10727391.00DipQtz vein with sulphides, galena, aspy, py57.3036.5EP-LC11-TR-10727401.00DipQtz vein with sulphides, galena, aspy, py90.5058.5EP-LC11-TR-10727411.50DipQtz vein with sulphides, galena, aspy, py4.5315.4EP-LC11-TR-10727421.50True ThicknessQtz vein with sulphides, galena, aspy, py2.4710.9EP-LC11-TR-10727431.70True ThicknessQtz vein with sulphides, galena, aspy, py2.124.7EP-LC11-TR-10727441.70True ThicknessQtz vein with sulphides, galena, aspy, py3.004.2EP-LC11-TR-10727452.00True ThicknessQtz vein with sulphides, galena, aspy, py2.504.5EP-LC11-TR-10727461.20True ThicknessQtz vein with sulphides, galena, aspy, py2.536.9EP-LC11-TR-10727472.00StrikeQtz vein with sulphides, galena, aspy, py1.532.9EP-LC11-TR-10727481.60StrikeQtz vein with sulphides, galena, aspy, py14.1011.4EP-LC11-TR-10727491.50StrikeQtz vein with sulphides, galena, aspy, py3.4511.4EP-LC11-TR-10727501.20StrikeQtz vein with sulphides, galena, aspy, py122.40>100.0Table 2 - 2011-2012 INTERMEDIATE TRENCH RESULTSTrench #Sample #Width (m)Sample typeRock typeAu (g/t)Ag (g/t)INT11-TR-011731241.00FloorWeathered phyllites with qtz lences1.000.9INT11-TR-011731330.60FloorQtz vein with sulphides, galena, aspy, py22.0829.5INT11-TR-011731340.60FloorQtz vein with sulphides, galena, aspy, py12.3514.1INT11-TR-011731351.00FloorQtz vein with sulphides, galena, aspy, py47.9067.6INT11-TR-011731361.00FloorQtz vein with sulphides, galena, aspy, py26.8436.6INT11-TR-011731391.00FloorWeathered phyllites with qtz fragments28.1641.0INT11-TR-011731401.00FloorWeathered phyllites with qtz fragments25.6230.4INT11-TR-011731421.00FloorWeathered phyllites with qtz fragments11.1510.0INT11-TR-011731431.00FloorWeathered phyllites with qtz fragments8.367.9INT11-TR-011731481.00VerticalWeathered phyllites with qtz fragments2.123.8INT11-TR-011724711.00VerticalWeathered phyllites with qtz fragments21.3954.6INT11-TR-011724720.60VerticalWeathered phyllites with qtz fragments1.453.4INT11-TR-011724731.00VerticalWeathered phyllites with qtz fragments7.037.6INT11-TR-021724891.00FloorSoil with qtz bolders2.183.4INT11-TR-021724901.00FloorSoil with qtz bolders2.940.3INT11-TR-021724911.00FloorSoil with qtz bolders1.021.0INT11-TR-021724921.00FloorPhyllites with qtz veinlets1.201.2INT11-TR-021724931.00FloorPhyllites with qtz veinlets1.131.3INT11-TR-021724941.00FloorPhyllites with qtz veinlets13.018.2INT11-TR-021724951.00FloorPhyllites with qtz veinlets7.546.7INT11-TR-021724961.00FloorPhyllites with qtz veinlets5.9515.8INT11-TR-021725061.00FloorPhyllites with qtz veinlets2.431.3INT11-TR-021725071.00FloorQtz vein with sulphides, galena, aspy, py4.305.5INT11-TR-021725081.00FloorQtz vein with sulphides, galena, aspy, py16.0313.1INT11-TR-021725091.00FloorQtz vein with sulphides, galena, aspy, py13.9811.8INT11-TR-021725101.00FloorQtz vein with sulphides, galena, aspy, py10.469.2INT11-TR-021725111.00StrikeQtz vein with sulphides, galena, aspy, py17.1119.7INT11-TR-021725121.00StrikeQtz vein with sulphides, galena, aspy, py11.9815.3INT11-TR-021725131.00StrikeQtz vein with sulphides, galena, aspy, py29.6819.5INT11-TR-021725171.00FloorQtz vein with sulphides, galena, aspy, py32.8751.5INT11-TR-021725181.00VerticalPhyllites with qtz veinlets3.992.9INT11-TR-021725191.00VerticalPhyllites with qtz veinlets2.816.4INT11-TR-031725241.00FloorSoil with qtz bolders1.063.8INT11-TR-031725311.00FloorPhyllites with qtz veinlets5.782.7INT11-TR-031725321.00FloorPhyllites with qtz veinlets1.471.1INT11-TR-031725331.00FloorPhyllites with qtz veinlets2.451.1INT11-TR-031725341.00FloorPhyllites with qtz veinlets1.101.0INT11-TR-031725351.00FloorQtz vein with sulphides, galena, aspy, py17.339.7INT11-TR-031725361.00FloorQtz vein with sulphides, galena, aspy, py89.7941.2INT11-TR-031725371.00FloorQtz vein with sulphides, galena, aspy, py15.7820.2INT11-TR-031725381.00FloorQtz vein with sulphides, galena, aspy, py2.763.5INT11-TR-031725391.00FloorQtz vein with sulphides, galena, aspy, py1.001.6INT11-TR-031725401.00FloorPhyllites with qtz veinlets1.583.5INT11-TR-031725411.00FloorPhyllites with qtz veinlets19.9321.5INT11-TR-031725421.00FloorQtz vein with sulphides, galena, aspy, py56.2619.9INT11-TR-031725431.00FloorQtz vein with sulphides, galena, aspy, py1.523.6INT11-TR-031725471.00StrikeQtz vein with sulphides, galena, aspy, py31.0332.7INT11-TR-031725481.00StrikeQtz vein with sulphides, galena, aspy, py42.35<0.1INT11-TR-031725491.00StrikeQtz vein with sulphides, galena, aspy, py2.0812.3INT11-TR-031725501.00StrikeQtz vein with sulphides, galena, aspy, py5.384.4INT11-TR-031725521.00VerticalQtz vein with sulphides, galena, aspy, py5.355.1INT11-TR-031725530.50VerticalPhyllites with qtz veinlets3.155.1INT11-TR-031725541.00VerticalPhyllites with qtz veinlets1.771.1INT11-TR-031725550.50VerticalPhyllites with qtz veinlets1.061.5INT11-TR-031725581.50VerticalPhyllites with qtz veinlets1.020.6INT11-TR-041725651.00FloorPhyllites with qtz veinlets4.520.9INT11-TR-041725801.00FloorQtz vein with sulphides, galena, aspy, py2.391.8INT11-TR-041725811.00FloorQtz vein with sulphides, galena, aspy, py3.8216.3INT11-TR-041725861.00StrikeQtz vein with sulphides, galena, aspy, py2.026.5INT11-TR-041725871.00StrikeQtz vein with sulphides, galena, aspy, py2.664.5LC11-TR-10596101.00FloorQtz vein with sulphides, galena, aspy, py3.4715.6LC11-TR-10596111.00FloorQtz vein with sulphides, galena, aspy, py4.164.0LC11-TR-10596121.00FloorQtz vein with sulphides, galena, aspy, py106.4215.9LC11-TR-10596131.00FloorQtz vein with sulphides, galena, aspy, py131.3964.5LC11-TR-10596141.3FloorQtz vein with sulphides, galena, aspy, py8.048.6LC11-TR-10596151.00StrikeQtz vein with sulphides, galena, aspy, py8.104.7LC11-TR-10596161.00StrikeQtz vein with sulphides, galena, aspy, py1.995.5LC11-TR-10596171.00StrikeQtz vein with sulphides, galena, aspy, py98.9266.4LC11-TR-14596271.00FloorQtz vein with sulphides, galena, aspy, py2.250.3LC11-TR-15596651.00FloorQtz vein with sulphides, galena, aspy, py2.00<0.1LC11-TR-15596661.00FloorQtz vein with sulphides, galena, aspy, py2.471.2LC11-TR-15132.00VerticalPhyllites with qtz veinlets62.9619.2LC11-TR-15212.00VerticalPhyllites with qtz veinlets3.537.8LC11-TR-161761491.00FloorPhyllites with qtz veinlets2.934.9LC11-TR-161761501.00FloorQtz vein with sulphides, galena, aspy, py3.164.1LC11-TR-161761511.00FloorQtz vein with sulphides, galena, aspy, py13.559.4LC11-TR-161761521.00FloorQtz vein with sulphides, galena, aspy, py16.5221.9LC11-TR-161761531.00FloorQtz vein with sulphides, galena, aspy, py13.247.9LC11-TR-161761551.00FloorPhyllites with qtz veinlets1.664.2LC11-TR-161761561.40FloorQtz vein with sulphides, galena, aspy, py2.483.4LC11-TR-161761761.00verticalPhyllites with qtz veinlets2.375.7LC11-TR-161761781.00verticalPhyllites with qtz veinlets6.306.2LC11-TR-161761791.00verticalPhyllites with qtz veinlets10.825.6LC11-TR-161761801.00verticalPhyllites with qtz veinlets8.426.4LC11-TR-161761811.00verticalPhyllites with qtz veinlets9.5610.6LC11-TR-161761851.00StrikeQtz vein with sulphides, galena, aspy, py41.5747.5LC11-TR-161761861.00StrikeQtz vein with sulphides, galena, aspy, py4.308.6LC11-TR-161761871.00StrikeQtz vein with sulphides, galena, aspy, py6.255.9LC11-TR-261762201.00FloorQtz vein with sulphides, galena, aspy, py1.990.6LC11-TR-261762322.00FloorWeathered phyllites with qtz fragments1.9226.3LC11-TR-261762332.00FloorWeathered phyllites with qtz fragments1.583.5LC11-TR-261762342.00FloorWeathered phyllites with qtz fragments2.971.4LC11-TR-261762352.00FloorWeathered phyllites with qtz fragments7.070.55LC11-TR-261762362.00FloorWeathered phyllites with qtz fragments1.784.3LC11-TR-261762372.00FloorWeathered phyllites with qtz fragments2.144.6LC11-TR-261762382.00FloorWeathered phyllites with qtz fragments2.533.8LC11-TR-261762391.00FloorWeathered phyllites with qtz fragments1.613.6LC11-TR-261762401.00FloorWeathered phyllites with qtz fragments13.1315.6LC11-TR-261762411.00FloorWeathered phyllites with qtz fragments1.415.3LC11-TR-261762421.00FloorWeathered phyllites with qtz fragments5.0312.9Note: Table 2 provides assay results for samples grading 1.0 g/t gold or greater.To view the map accompanying this press release please click on the following link: http://media3.marketwire.com/docs/GRR0205.pdfQualified PersonJohn 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, CGA, President & CEOAbout Golden Reign:Golden Reign Resources Ltd. is a publicly listed (TSX VENTURE: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 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-looking statements, 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 potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information contained herein represents management's best judgment as of the date hereof, based on information currently available. FOR FURTHER INFORMATION PLEASE CONTACT: 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. Contact Information: Golden Reign Resources Ltd.Kim Evans, CGAPresident & CEO(604) 685-4655 or Toll Free: 1-888-685-4655(604) 685-4675 (FAX)www.goldenreign.com