Nicaragua is king for Golden Reign

The old mines of Nicaragua’s San Albino and Murra district are getting a fresh look from Golden Reign Resources (GRR-V).

The Vancouver-based company’s latest drill results show the area – which has hosted mines all the way back to when the Spanish controlled the Central American country – still has plenty of upside.

Drill results from surface were highlighted by 3.83 metres grading 24.98 grams gold and 17. 65 grams silver.

The result fits well with previous drill results from the historic mine that returned highlights intercepts of 22.40 grams gold over 3.1 metres, 29.32 grams gold over 2.0 metres and 10.75 grams gold over 2.13 metres.

When taken together, the company says it is confident that it has confirmed uniformity of high-grade near-surface mineralization, both in thickness and grade.

The company also says recent drill results correlate well with historical underground sampling from the 200, 300 and 400 levels of the old mine.

As for the larger San Albino gold zone, which hosts the San Albino Mine, Golden Reign says it has extended the zone from 70 metres to 200 metres along strike and by 50 metres at depth from level 400.

The zone remains open in both directions along strike and at depth.

What bodes particular well for the future of the project is that the San Albino zone is only one of four parallel zones that are currently being investigated in the area around the old mine.

The company is still waiting for assays from five holes at the Arras Mine area, which sits 450 metres to the south-east of the San Albino Mine.

For its next phase of drilling, slated to begin in 2011, Golden Reign says it will focus on San Albino mine area with 10,000 metres testing the continuity and extension of known mineralized zones and to test for additional parallel mineralized zones

In Toronto on Nov. 22 the company’s shares finished the day up a penny to 48¢ on 238,000 shares traded.