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Posts tagged ‘Golden Reign Resources Ltd (GRR)’

Stocks rise with ounces

November 20th, 2012

Investors embrace resource estimates from Pretium and Golden Reign

by Greg Klein

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Investors embrace resource estimates from Pretium and Golden Reign

Visible gold shines through core samples from
Pretium Resources’ Valley of the Kings zone.

Two resource estimates announced November 20 received warm market welcomes. Pretium Resources TSX:PVG increased the indicated category of its Brucejack Project in northwestern British Columbia by 66%. Golden Reign Resources TSXV:GRR, meanwhile, debuted the San Albino-Murra Property in western Nicaragua with its first-ever estimate.

Pretium last released updates on September 7 for both the Valley of the Kings zone and the West zone 500 metres north. The November 20 update concerns Valley of the Kings only.

Using a cutoff of 5 g/t gold-equivalent, the resource shows:

  • an indicated category of 16.1 million tonnes averaging 16.4 g/t gold and 14.2 g/t silver for 8.5 million gold ounces and 7.3 million silver ounces
  • an inferred category of 5.4 million tonnes averaging 17 g/t gold and 15.7 g/t silver for 2.9 million gold ounces and 2.7 million silver ounces

The Valley of the Kings resource now includes drilling from Galena Hill, previously thought to be a separate zone. The company stated that the Valley remains open to the east and west along strike and at depth.

By boosting the indicated category 66%, the resource pushes Brucejack further along its feasibility study, Pretium president/CEO Bob Quartermain tells ResourceClips. “This gives us a really good base to do the feasibility study and develop a mine plan around the high-grade resource at the Valley of the Kings,” he says. He hopes to have feasibility complete by the first half of next year.

“We continue to de-risk the project and I think the next major catalyst for the company will be the feasibility study,” he adds. “There’s also the underground bulk sample, which we’re hoping to take again in the second half of next year. Those continue to create value for our shareholders. Obviously the market likes the way we’re de-risking the project and certainly reacted positively today.”

Indeed Pretium opened November 20 at $13.07 and reached $13.25 before settling back at a $12.95 close—still comfortably above the previous day’s $12.77 close. The stock has a 52-week high of $18.15 and low of $8.27. With 94.83 million shares outstanding, the press-time market cap came to $1.23 billion.

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Cash-Cow Potential

March 13th, 2012

Golden Reign Advances Low-Cost, High-Grade Nicaragua Gold and Silver

By Ted Niles

Nicaragua has had a stable democracy for 20 years, but the Communist mayhem that saw its gold mines nationalized in 1979 was long remembered by the industry. Free elections in 1990 removed the Sandinistas from power, but a weak gold price kept the industry in eclipse. Now that the gold price has surged, Nicaragua promises an almost singular potential. It is “virtually untapped because of its history of conflict,” says Kim Evans, President and CEO of Golden Reign Resources TSXV:GRR.

Evans reports, “Nicaragua’s just starting to emerge as a major area for mining exploration and development.” Indeed, 2011 gold exports from Nicaragua were up 60% from 2010. Gold is now its third-leading export, and the country’s largest producer, B2Gold Corp TSX:BTO, has committed $100 million for further development of its La Libertad and Limon mines.

Golden Reign Advances Low-Cost, High-Grade Nicaragua Gold and Silver

“It is considered a developing Third World nation, and so there is a wide pool of available talent,” Evans says. “We’ve had nothing but great experiences and work very closely with the mining ministry and all the different mining groups. It is a very pro-mining country and a very good place to be doing business.” She adds, “It is the safest country by far in Central America. It is actually ranked as being much safer than a number of the big US cities, such as New York and Boston.”

Golden Reign‘s 8,700-hectare San Albino-Murra gold property is located in the Nueva Segovia Department. Its ongoing 25,000-metre drill program has focused on a two-square-kilometre area of the property, including the San Albino and Arras zones. February 22 results from the Las Conchitas area, located just south of the historic San Albino Mine, include

  • 62.96 grams per tonne gold and 61.7 g/t silver over 3 metres
  • 12.01 g/t gold and 13.1 g/t silver over 3 metres
  • 14.96 g/t gold and 25.4 g/t silver over 2.5 metres
  • 9.44 g/t gold and 17.3 g/t silver over 1.5 metres
  • 8.63 g/t gold over 5 metres

February 15 results from the San Albino Mine area include

  • 85.86 g/t gold and 35.1 g/t silver over 2 metres
  • 4.48 g/t gold and 12.3 g/t silver over 4 metres
  • 4.22 g/t gold and 9.1 g/t silver over 1 metre

“The [assays] are quite spectacular, as you can tell,” Evans comments. “It is rare nowadays for projects to see multi-ounce material as prevalent as this. It’s open in all directions and at depth at this point, and our program will finish likely with it open in all directions and at depth.”

The [assays] are quite spectacular, as you can tell. It is rare nowadays for projects to see multi-ounce material as prevalent as this —Kim Evans

The company expects San Albino-Murra’s maiden resource estimate in July 2012. “What I would like to do [after that],” Evans says, “is start spacing the drill holes tighter so we can take it from what will likely be an inferred category—with the possibility of some indicated—to more of a reserve level. Then we’ll start stepping out as well to try to define the outer boundaries of the San Albino area.”

Evans doesn’t think Golden Reign likely to take the project to production but notes that the probable capital expenditure (which she estimates at $50 million to $100 million) wouldn’t require the financial resources of a major. “This isn’t elephant country, where you’re going to see one big deposit of five million ounces. What we think we have the potential for is a number of small, one million (give or take) ounce deposits. It has very nice little cash-cow potential.”

The project is accessible by all-weather roads and has power and water, so the company’s biggest expense is drilling. “Everything else is very inexpensive to run,” Evans says. “Working in a country that is a developing nation, your costs are considerably lower.” Golden Reign has $3 million cash on hand.

“We’re a very aggressive company, so in the last year we’ve progressed significantly,” Evans concludes. “I think we’re going to see another big step up this year with the initial resource and then with opening up other areas. We believe we can replicate what we’re seeing in each of the [three] blocks we have within the property boundary and also with the new property [the El Jicaro Concession] that I’ve just added south of us. We think there is huge potential.”

At press time, Golden Reign had 59.1 million shares trading at $0.99 for a market cap of $58.5 million.

Golden Reign reports Nicaragua Assays of 62.96 g/t Gold, 61.7 g/t Silver over 3m

February 22nd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningGolden Reign Resources Ltd TSXV:GRR announced assay results from the Las Conchitas area of its San Albino-Murra gold property in Nueva Segovia, Nicaragua. Highlights include

62.96 g/t gold and 61.7 g/t silver over 3 metres
12.01 g/t gold and 13.1 g/t silver over 3 metres
(including 29.8 g/t gold and 31.7 g/t silver over 1.2 metres)
14.96 g/t gold and 25.4 g/t silver over 2.5 metres
(including 36.53 g/t gold and 60.6 g/t silver over 1 metre)
9.44 g/t gold and 17.3 g/t silver over 1.5 metres
(including 20.64 g/t gold and 37 g/t silver over 0.6 metres)
8.63 g/t gold over 5 metres (including 35.7 g/t gold over 1 metre)

The Las Conchitas area lies approximately 2.5 kilometres south of the historic San Albino Mine area where three drill rigs are currently completing a definition drill program. The property’s maiden resource calculation is expected to be completed in the first half of 2012.

View Company Profile

Contact:
Kim Evans
President/CEO
604.685.4655

by Ted Niles

Golden Reign CEO Kim Evans on Nicaragua gold assays of 85.86 g/t over 2m

February 22nd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningGolden Reign Resources Ltd TSXV:GRR announced assays from the San Albino Mine area of its San Albino-Murra gold property in Nueva Segovia, Nicaragua. Results include

85.86 g/t gold and 35.1 g/t silver over 2 metres
(including 171.62 g/t gold and 68.8 g/t silver over 1 metre)
4.48 g/t gold and 12.3 g/t silver over 4 metres
(including 15.08 g/t gold and 24.3 g/t silver over 1 metre)
4.22 g/t gold and 9.1 g/t silver over 1 metre

Golden Reign expects to complete drilling in March 2012 and the NI 43-101 compliant resource calculation in the first half of 2012. The company has three drill rigs turning at the San Albino Mine area.

President/CEO Kim Evans tells ResourceClips.com, “[San Albino-Murra] was owned by an American metallurgist in the early 1920s. He developed the mine there, but the Spanish were the first ones into this particular area back in the 1790s and were reportedly pulling about two-ounce material at surface from this area. The property is a fairly sizeable concession—it’s 87 square kilometres located in the north-central part of Nicaragua. It is a property we’ve been on since about mid-2009 and really have started advancing in the last year. We’ve done a fairly extensive drill program within the last year and are looking to wrap it up in about the end of March or early April. We are looking to complete our maiden resource calculation on a historical mine called the San Albino mine and a prospect called Arras. What we’re really focused on at this particular juncture is a two-square-kilometre area within the 87-square-kilometre property. That is our first target within the project area.

Capex costs are quite low—say $50 million to $100 million only—and it has very nice little cash-cow potential—Kim Evans

“The [assays] are quite spectacular as you can tell. It is rare nowadays for projects to see multi-ounce material as prevalent as this. Nicaragua is virtually untapped because of its history of conflict, but it’s been a stable democracy since the 1990s. I think they’re just starting to emerge as a major area for mining exploration and development.

“It is the safest country by far in Central America,” Evans continues. “It is actually ranked as being much safer than a number of the big US cities such as New York and Boston. Of course, it is considered a developing Third World nation, and so there is a wide pool of available talent and the people are quite fantastic. We’ve had nothing but great experience and work very closely with the mining ministry and all the different mining groups. It is a very pro-mining country and a very good place to be doing business.”

Evans reports that San Albino-Murra’s first resource estimate should be out by July 2012.

Regarding the current drill program, she says, “We’re doing 25,000 metres in this two-square kilometre area. I had rolled a third rig which is currently joined up with the other two I have active in that area. In the late fall it been [used for] a small program about 1.5 kilometres south of the San Albino mine area. I think that based upon the results we’re seeing from there we’ll put a rig or possibly two down there to start off. Then we’ll be coming back to the San Albino mine area itself. It’s open in all directions and at depth at this point and our program will finish likely with it open in all directions and at depth. So what I would like to do is start spacing the drill holes tighter so we can take it from what will likely be an inferred category—with the possibility of some indicated—to more of a reserve level, and then we’ll start stepping out as well to try to define the outer boundaries of the San Albino area.

“We’re primarily explorationists,” Evans notes, “so I have a feeling that we probably won’t get a chance to play the production game. That said, just based on the level of interest I’m seeing already for doing this type of deposit, your capex costs are quite low—say $50 million to $100 million only—and it has very nice little cash-cow potential.

“We operate out of the local municipality—a little town called El Jicaro—and it’s about seven miles from the San Albino mine area. We have good all-weather roads all the way in; we have power in; and we’re right beside the river.

“We have over $3 million in the bank. My biggest costs by far are drilling costs because everything else is very inexpensive to run in that country. Working in a country that is a developing nation, your costs are considerably lower. We’ve got a number of warrants, all of which are in the money, which would drive in about another $13 million.

“We’re a very aggressive company, so in the last year we’ve progressed significantly,” Evans concludes. “I think we’re going to see another big step up this year with the initial resource and then with opening up other areas. There are actually three contiguous blocks that comprise this property, and right now we’re just focused in the very southern one, the San Albino block. We believe we can replicate what we’re seeing in that block in each of the blocks we have within the property boundary and also with the new property that I’ve just added south of us. We think there is huge potential and we’re looking at a possibility of a number of sizeable deposits. This isn’t elephant country where you’re going to see one big deposit of five million ounces. What we think we have the potential for is a number of small, one-million (give or take) ounce deposits. We think we can do that throughout the project area, so it’s going to be very interesting. We have some amazing targets down there.”

View Company Profile

Contact:
Kim Evans
President/CEO
604.685.4655

by Ted Niles

Golden Reign reports Nicaragua Assays including 85.86 g/t, 35.1 g/t silver over 2m

February 21st, 2012

Resource Clips - essential news on junior gold mining and junior silver miningGolden Reign Resources Ltd TSXV:GRR announced assays from the San Albino Mine area of its San Albino-Murra gold property in Nueva Segovia, Nicaragua. Results include

85.86 g/t gold and 35.1 g/t silver over 2 metres
(including 171.62 g/t gold and 68.8 g/t silver over 1 metre)
4.48 g/t gold and 12.3 g/t silver over 4 metres
(including 15.08 g/t gold and 24.3 g/t silver over 1 metre)
4.22 g/t gold and 9.1 g/t silver over 1 metre

Golden Reign expects to complete drilling in March 2012 and the NI 43-101 compliant resource calculation in the first half of 2012. The company has three drill rigs turning at the San Albino Mine area.

President/CEO Kim Evans tells ResourceClips.com, “[San Albino-Murra] was owned by an American metallurgist in the early 1920s. He developed the mine there, but the Spanish were the first ones into this particular area back in the 1790s and were reportedly pulling about two-ounce material at surface from this area. The property is a fairly sizeable concession—it’s 87 square kilometres located in the north-central part of Nicaragua. It is a property we’ve been on since about mid-2009 and really have started advancing in the last year. We’ve done a fairly extensive drill program within the last year and are looking to wrap it up in about the end of March or early April. We are looking to complete our maiden resource calculation on a historical mine called the San Albino mine and a prospect called Arras. What we’re really focused on at this particular juncture is a two-square-kilometre area within the 87-square-kilometre property. That is our first target within the project area.

Capex costs are quite low—say $50 million to $100 million only—and it has very nice little cash-cow potential—Kim Evans

“The [assays] are quite spectacular as you can tell. It is rare nowadays for projects to see multi-ounce material as prevalent as this. Nicaragua is virtually untapped because of its history of conflict, but it’s been a stable democracy since the 1990s. I think they’re just starting to emerge as a major area for mining exploration and development.

“It is the safest country by far in Central America,” Evans continues. “It is actually ranked as being much safer than a number of the big US cities such as New York and Boston. Of course, it is considered a developing Third World nation, and so there is a wide pool of available talent and the people are quite fantastic. We’ve had nothing but great experience and work very closely with the mining ministry and all the different mining groups. It is a very pro-mining country and a very good place to be doing business.”

Evans reports that San Albino-Murra’s first resource estimate should be out by July 2012.

Regarding the current drill program, she says, “We’re doing 25,000 metres in this two-square kilometre area. I had rolled a third rig which is currently joined up with the other two I have active in that area. In the late fall it been [used for] a small program about 1.5 kilometres south of the San Albino mine area. I think that based upon the results we’re seeing from there we’ll put a rig or possibly two down there to start off. Then we’ll be coming back to the San Albino mine area itself. It’s open in all directions and at depth at this point and our program will finish likely with it open in all directions and at depth. So what I would like to do is start spacing the drill holes tighter so we can take it from what will likely be an inferred category—with the possibility of some indicated—to more of a reserve level, and then we’ll start stepping out as well to try to define the outer boundaries of the San Albino area.

“We’re primarily explorationists,” Evans notes, “so I have a feeling that we probably won’t get a chance to play the production game. That said, just based on the level of interest I’m seeing already for doing this type of deposit, your capex costs are quite low—say $50 million to $100 million only—and it has very nice little cash-cow potential.

“We operate out of the local municipality—a little town called El Jicaro—and it’s about seven miles from the San Albino mine area. We have good all-weather roads all the way in; we have power in; and we’re right beside the river.

“We have over $3 million in the bank. My biggest costs by far are drilling costs because everything else is very inexpensive to run in that country. Working in a country that is a developing nation, your costs are considerably lower. We’ve got a number of warrants, all of which are in the money, which would drive in about another $13 million.

“We’re a very aggressive company, so in the last year we’ve progressed significantly,” Evans concludes. “I think we’re going to see another big step up this year with the initial resource and then with opening up other areas. There are actually three contiguous blocks that comprise this property, and right now we’re just focused in the very southern one, the San Albino block. We believe we can replicate what we’re seeing in that block in each of the blocks we have within the property boundary and also with the new property that I’ve just added south of us. We think there is huge potential and we’re looking at a possibility of a number of sizeable deposits. This isn’t elephant country where you’re going to see one big deposit of five million ounces. What we think we have the potential for is a number of small, one-million (give or take) ounce deposits. We think we can do that throughout the project area, so it’s going to be very interesting. We have some amazing targets down there.”

View Company Profile

Contact:
Kim Evans
President/CEO
604.685.4655

by Ted Niles