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Press release from Marketwire

Golden Reign Resources Ltd.: Metallurgical Testing Returns High Gravity-Flotation Recoveries of Over 96% Gold and 92% Silver

Tuesday, June 11, 2013

Golden Reign Resources Ltd.: Metallurgical Testing Returns High Gravity-Flotation Recoveries of Over 96% Gold and 92% Silver

13:18 EDT Tuesday, June 11, 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 11, 2013) - Golden Reign Resources Ltd. (TSX VENTURE:GRR) (the "Company" or "Golden Reign") is pleased to announce second-phase metallurgical test results for its high-grade, near-surface San Albino Gold Deposit located in Nueva Segovia, Nicaragua. Metallurgical test work was performed by Inspectorate Exploration & Mining Services Ltd. ("Inspectorate"), of Richmond, British Columbia.

Highlights

  • Sequential gravity-flotation tests produced high overall recoveries of 96.4% gold and 92.6% silver
  • Testing demonstrates high gold and silver recoveries achievable without use of cyanide leaching
  • The combination of gravity and flotation processing complement each other well, with flotation recovering finer gold particles not recovered via gravity methods
  • Sequential gravity-flotation testing resulted in optimum recoveries from both oxidized and non-oxidized mineralization

Sequential Gravity-Flotation Test Results

Initial metallurgical testing returned extremely high gravity recoveries of 80.2 to 84.4% gold and strong gold recoveries from flotation ranging between 76.6 to 85.5% (see news release dated May 16, 2013). Based upon these results, sequential gravity-flotation processing was selected to determine the maximum recovery possible.

Two composite samples were tested. The first, AB, represents a 50/50 mix of composite samples of drill core from each of the Arras and San Albino unoxidized vein material. Composite Sample D represents oxidized Arras vein material collected from trenches.

As the results below indicate, gravity and flotation processing methods complement each other very well - with flotation recovering finer gold particles that cannot be recovered via gravity methods - to produce very high combined recoveries.



Composite #
Grade
Au
(g/t)
Grade
Ag
(g/t)
Au Recovery, % Ag Recovery, %

Gravity

Flotation

Total

Gravity

Flotation

Total
AB 24.0 34.9 80.7 15.7 96.4 59.8 32.8 92.6
D 5.9 15.8 53.2 31.1 84.3 23.3 63.5 86.8

Testing once again confirmed that significant gold can be recovered solely by gravity, prior to any other downstream process, including flotation. Gravity recovery testing, conducted by a laboratory Knelson concentrator over two stages, resulted in recoveries of 80.7% gold and 59.8% silver for Composite Sample AB and 53.2% gold and 23.3% silver for Composite Sample D. Sample D recoveries were lower, possibly due to the gold being too fine to recover via gravity methods alone.

Gravity tailings responded well to sulphide flotation, with gold recovery from 15.7 to 31.1%. Composite Sample D, comprised of mostly oxidized material, responded very well to flotation. Notably in each instance, most of the gold was recovered after only 4 minutes (rougher stage 1) and that the second stage produced minimal additional metal recovery.

Overall recoveries from the sequential gravity-flotation testing were 96.4% gold and 92.6% silver for Composite Sample AB and 84.3% gold and 86.8% silver for Composite Sample D. For further details, please refer to the full metallurgical report available on the Company's website (www.goldenreign.com).

Significantly, this second-phase metallurgical testing demonstrates that very strong gold and silver recoveries are achievable without using cyanide. Gravity-floatation circuits offer an efficient, lower cost means of processing the San Albino Gold Deposit mineralization. This method substantially reduces capital and operating costs and has minimal deleterious impact on the environment since it is cyanide free.

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, CGA, President & CEO

About 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, CGA
President & CEO
(604) 685-4655 or Toll Free: 1-888-685-4655
(604) 685-4675 (FAX)
www.goldenreign.com

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