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Golden Reign Files NI 43-101 Technical Report and Resource Estimate on the San Albino Gold Deposit

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© Marketwire 2013
2013-01-07 16:53:37 -

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/07/13 -- Golden Reign Resources Ltd. (TSX VENTURE:GRR) (the "Company" or "Golden Reign") is pleased to announce that a National Instrument 43-101 ("NI 43-101") compliant Technical Report and Resource Estimate on the San Albino Gold Deposit on the San Albino-Murra Property located in Nueva Segovia, Nicaragua, as detailed in the news release issued on November 20, 2012, has been filed on SEDAR and is available on Golden Reign's website at The report was authored by P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario.

The San Albino Deposit is located near the southwest end of a 20 km long mineralized trend defined by Golden Reign as the Corona de Oro belt. The deposit consists of a series of shallow dipping quartz sulphide veins hosted by graphitic argillaceous schist. The San Albino resource model consists of three high grade, vein systems - the San Albino, Naranjo, and Arras veins - over a strike length of 850 metres, a down dip extension of 925 metres, with a minimum true width of one metre and average true width of 2.6 metres.

Only 0.6 square kilometres of the 2 square kilometre San Albino Mine area, within the Company's total 138 square kilometre land package, has been drill tested. All mineralized zones remain open at depth and along strike in both directions.


--  Indicated resources of 95,000 ounces gold equivalent ("AuEq") at 8.47
    g/t contained in 348,000 tonnes using 0.5 g/t open pit and 1.5 g/t
    underground gold equivalent cut-offs 
--  Inferred resources of 805,000 ounces gold equivalent at 7.43 g/t
    contained in 3,371,000 tonnes using 0.5 g/t open pit and 1.5 g/t
    underground gold equivalent cut-offs

                 Cut-off grade                                             
                    (g/t AuEq) Classification        Tonnes        Au (g/t)
Open-pittable              0.5      Indicated        247,000           9.00
                           0.5       Inferred        682,000           8.25
Underground                1.5      Indicated        101,000           6.59
                           1.5       Inferred      2,689,000           7.00

                  Au ounces   Ag  (g/t)   Ag ounces  AuEq (g/t) AuEq ounces
Open-pittable        71,000        10.8      86,000        9.18      73,000
                    181,000        10.7     234,000        8.42     185,000
Underground          21,000         9.7      31,000        6.76      22,000
                    605,000        10.6     912,000        7.17     620,000

Mineral Resource Estimate Notes and Parameters:

1.  Mineral Resources are not Mineral Reserves and do not have demonstrated
    economic viability. There is no certainty 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, taxation, 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 has been insufficient exploration to
    define these Inferred resources as an Indicated or Measured mineral
    resource and it is uncertain 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 = 60 grams

The resource estimate was derived from applying AuEq cut-off grades to the block model and reporting the resulting tonnes and grade for potentially mineable areas. The mined tonnage from previous operations was insignificant and was not removed from the block model. The AuEq calculation ratio is derived from the following:


The following calculations based on similar open pit and underground operations to that anticipated at San Albino demonstrate the rationale supporting the AuEq cut-off grade that determines the potentially economic portion of the mineralized domains:

Underground Au Cut-Off Grade Calculation ($US)


Therefore, the AuEq cut-off grade for the underground portion of the resource estimate is calculated as follows:


Open Pit Au Cut-Off Grade Calculation ($US)


Therefore, the AuEq cut-off grade for the open pit portion of the resource estimate is calculated as follows:


The open pit resource model was further investigated with a Whittle pit optimization to ensure a reasonable stripping ratio was applied and a reasonable assumption of potential economic extraction could be made. The following parameters were utilized in the pit optimizations:


The above data were derived from similar open pit gold projects to San Albino.

Resource Estimate Sensitivities


The preceding resource estimate open pit and underground sensitivity tables were derived by P&E by applying a series of increasing AuEq cut-offs to the domains that constrain the mineralization. These domains were subsequently used during the application of all cut-off grades within the sensitivity table.

Technical Report Recommendations

P&E recommends that Golden Reign continue to explore the San Albino Deposit and surrounding area with an emphasis on drilling to expand the resource. Gold mineralization at the San Albino Gold Deposit is open on strike and down dip. P&E has extrapolated the known resources estimate mineralization model and indicates that there is considerable potential to increase the size of the deposit.

P&E has identified an Exploration Target beyond the resource estimate (along strike and down dip) with an estimated 3 to 5 million tonnes at a grade between 6 to 10 grams gold equivalent per tonne. The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in discovery of a mineral resource.

An exploration program consisting of additional trenching and drilling is proposed at the San Albino Gold Deposit. Six trenches, totalling 300 m, are planned to be excavated along the south slope of the San Albino hill to further delineate the surface exposure of the San Albino vein. A further four trenches, totalling approximately 200 m, are planned to expose and extend the surface exposure of the Arras vein. The first phase of a two-phase exploration drill program, to consist of 19,000 m of step-out drilling and 4,000 m infill drilling, will test the down-dip extension and strike extension of all three veins. Phase two drilling, to consist of approximately 30,000 m of step-out drilling, will seek to delineate the boundaries of the San Albino Deposit.

Metallurgical testwork at the San Albino Deposit is warranted to test recovery on oxidized and primary sulphide mineralization. This would be a requirement prior to undertaking a preliminary economic analysis.

In addition to the exploration at the San Albino Deposit, 500 m of trenching and 4,000 m of drilling (40 holes) is proposed in order to test new exploration targets in the San Pablo-Las Conchitas area, which lies approximately 1.5 kilometres south of the San Albino Gold Deposit.

The Technical Report and Resource Estimate was prepared by P&E in accordance with the Canadian Securities Administrators ("CSA") National Instrument 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 Antoine Yassa, 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.

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, 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 : and SEDAR

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.

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.


Golden Reign Resources Ltd.

Kim Evans, CGA

President & CEO

(604) 685-4655 or Toll Free: 1-888-685-4655

(604) 685-4675 (FAX)

Press Information:

Contact Person:

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