Golden Reign completes early earn-In of 80% interest in flagship san albino-murra gold property, Nicaragua
Tuesday, May 08, 2012
Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is extremely pleased to announce that it has earned an undivided 80% interest in the San Albino-Murra Gold Property (the "Property"), Nueva Segovia, Nicaragua.
The 80% earned interest (the "Earned Interest") has been completed approximately 1.5 years ahead of schedule and marks a very significant milestone for the Company.
The Company entered into a four-year property option agreement in June 2009 and commenced exploration activities on the San Albino-Murra Property in November 2009. Pursuant to the terms of the property option agreement, consideration paid for the Earned.
The vendor has a 60-day period in which to decide to either to (a) to retain a 20% interest and continue under a participating joint-venture agreement or (b) convert the 20% working interest into a 3% net smelter royalty (NSR). Should the vendor convert its working interest into the NSR, the Company has the right to purchase 1.5% for USD$1,850,000 and the right of first refusal on the remaining 1.5%.
Corona de Oro Gold Belt
It is now apparent that the gold mineralization established by the Company represents a considerable gold belt - the Corona de Oro Gold Belt - that lies along a southwest to northeast axis, spanning the entirety of the Property. It is approximately 3 kilometres wide and over 20 kilometres long. Originally discovered by drilling, trenching, geological mapping and geochemical survey, the Corona de Oro Gold Belt is host to hundreds of historical mines and workings.
To date, the Company has identified and systematically mapped over 800 showings throughout the 87 square kilometre San Albino-Murra Property - including over 170 quartz vein structures, 112 tunnels, 148 mine dumps and 354 exploration pits.
In February, Golden Reign announced that it has nearly doubled its land position from 87 square kilometres (8,700 hectares) to 138 square kilometres (13,771 hectares) with the acquisition of the El Jicaro Concession. A comprehensive mapping and prospecting program is now underway.