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October 19, 2009NEWS RELEASE - #09-03
TSX- V: GRR
PHASE I - MOBILIZATION
SAN ALBINO-MURRA GOLD PROPERTY, NICARAGUA
Golden Reign Resources Ltd. (the “Company” or “Golden Reign”)(TSXV: GRR) is pleased to announce that the technical supervisors have mobilized to El Jicaro, the base of operations, in commencement ofthe Phase I exploration program at its San Albino-Murra Gold Property, Nicaragua. The Company anticipates a rapid advancement of the project.
The San Albino-Murra Property hosts the historic San Albino and Aguja de Arras gold mines and contains numerous showings. During the late 1920’s, the San Albino mine recorded an average daily production of 10 tons at 31 g/t gold during a brief interval before revolutionary activity halted mining. Over the intervening 80+ years, the mine has never been reopened for production.
In 1948, Mr. Rodgers Peale prepared a historical resource estimateof the San Albino mine, which is non NI 43-101 compliant and, thus, should not be relied upon. Peale calculated a gold resource of 80,486 tons grading approximately 0.5 ounces per ton, equivalent to approximately 42,000 ounces.
During the Phase I work program, the Company plans to rehabilitate the San Albino mine, reopening and clearing the caved sectionsof the 300 and 400 levels. The team is currently finalizing manpower requirements, supplies and logistical support for the project. Permits are in place which allow for drilling, trenching and rehabilitation of the historic San Albino mine and other old workings.
Messrs. Brent McNiven, Hildebrando Vassallo and John Kowalchuk will be working with Golden Reign’s VP Exploration, Zoran Pudar, to establish operations.
Mr. Brent McNiven, B.Sc., Geol., MBA-PM, a consulting geologist to the Company, is an expert in cross-cultural exploration and operations management. With over 15 years of project management experience in 12 different countries, including Latin America, Mr. McNiven has considerable expertise in planning, establishing and developing successful, dynamic operations.
Mr. Hildebrando Vassallo, a Peruvian mining engineer, has over 30 years of experience in the exploration, development and operations management of underground mines. His expertise includes assessing mine feasibility and designing underground operations. Mr. Vassallo’s experience in formulating budgets, methodologies and conceptual estimates for various construction, engineering and underground mining projects, as well as estimating productivities and capital/operating costs will be of substantial benefit to the Company. Other specialized skills, related to both surface and underground mining, include maintaining permits and filings, training andmanagingoperating staff, and safety and loss control.
Mr. John Kowalchuk, PGeol. BC, has 39 years of experience in exploration throughout North and South America. He has managed exploration programs from grass roots generative programs all the way to final feasibility stage. Mr. Kowalchuk has searched for all commodities from base and precious metals to lithofile elements.He was involved in the discovery of the Howard’s Pass zinc-lead deposit and the Kerr porphyry copper-gold deposit.
On behalf of the Board,
“Kim Evans”
Kim Evans, CGA
Director & CFO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX-V: GRR) mineral exploration company engaged in the business of exploring and developing the precious metals and mineral assets in Nicaragua.
Under the terms of the option agreement, the Company may acquire an 80% interest in the Property over a four year period by making cash payments totalling US$450,000, issuing 4,000,000 common shares from treasury and incurring aggregate exploration expenditures of US$5,000,000.
The San Albino-Murra Property is held by a private Nicaraguan company, Nicoz Resources S.A. (“Nicoz”), under a 25 year mining license expiring February 3, 2027 and covers an area of 8,700 hectares (87 sq km).
Nicaragua, a mining-friendly jurisdiction, is situated in the Central American Gold Belt, which extends from Costa Rica in the south to Guatemala in the north. Within this prolific gold belt, estimates of historical production total more than 20 million ounces.
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.
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this news release.