Golden Reign continues to unearth Nicaraguan gold

Golden Reign Resources (GRR-V) continues to show that Nicaragua’s Corona de Oro Gold belt has plenty of gold to give.

The latest results come out of its on-going trenching program at the Las Conchitas area of its San Albino-Murra gold property on the belt.

More specifically the trenches cut into the California Vein and the Las Dolores mine area in the southwest corner of the property. California and Las Dolores are both near-surface high-grade vein prospects and were tested to a depth of roughly 1.5 metres.

Highlights from three separate trenches include: 4 metres grading 21 grams gold and 21.9 grams silver; 3.5 metres grading 42.64 grams gold and 11.7 grams silver and 12.6 metres grading 6.56 grams gold and 12.5 grams silver.

Those results boosted the zones strike length to 750 metres and it remains open in both directions and at depth and trends in a southwesterly direction onto Golden Reign’s recently acquired El Jicaro concession.

Golden Reign is interpreting California and Las Dolores as extensions of the structures first identified by trenching in 2011 and further outlined by a 2012 sampling program. Those past results were highlighted by 14 metres grading 5.89 grams gold and 11.8 grams silver (from trenching) and 2 metres grading 69.33 grams gold and 47.8 grams silver from sampling of the California vein.

And while the results from California and Las Dolores have been promising thus far, the targets represent just two of 29 high priority targets that Golden Reign plans to test this year. Such testing will be made up of trenching and then drill testing where warranted.

Las Conchitas — which is the broader area that hosts California and Las Dolores — sits roughly 3-km south of Golden Reign’s principal focus on the property, the San Albino Mine area. The company currently has three drill rigs in operation at San Albino and is working towards its maiden resource calculation which is due out by the middle of this year.

The latest trench results follow on the heels of drill results from San Albino Mine area which returned highlight assets of 9.3 metres grading 11.01 grams gold and 29.8 grams silver and 4 metres grading 20.44 grams gold and 42.7 grams silver.

San Albino covers 2 sq. km of the total land package and was the first of target to be drill tested. The company says that currently the San Albino zone has an open pittable portion with a strike length of 400 metres and a down-dip extension of 300 metres.

Golden Reign recently earned an 80% interest in the San Albino-Murra property and it is also exploring its wholly owned El Jicaro property — both of which are in the Nueva Segovia region of Nicaragua roughly 40-km south of the Nicaragua and Honduras border.

In total, Gold Reign has permits on 138 sq. km of land within the Corona de Oro Gold Belt which spans 3-km in width and 20-km in length and includes numerous small-scale historical mines.

Earlier in the month the company announced it had arranged a private placement that will raise $5 million in capital by issuing 7.5 million units for 67¢ per unit. Each unit is made up of one share and one warrant with a strike price of $1.00. The company said the proceeds would go towards exploration and development in Nicaragua.

The company currently has 83 million shares on a fully diluted basis with directors and management holding 16% of the company’s equity.