The Las Conchitas Area is located immediately south (1.5 kilometres) of the Company’s high-grade San Albino Gold Deposit and is situated near the southern end of the Corona de Oro Gold Belt, a corridor 3 kilometres wide by 23 kilometres long bearing hundreds of historical mines and workings.

Exploration activities by the Company identified at least seven highly mineralized structures within the Las Conchitas area, with strike lengths ranging from 500 to more than 1,000 metres, all located within a 2.5 km2 area. To date, Golden Reign has completed significant trenching, covering 4,300 metres in 134 trenches and exploration pits. A small number of the most prospective trenching results have been tested by 18 holes drilled for 3,040 metres. Exploration results from Las Conchitas include the following:

Drilling

INT13-03 21.3 metres of 7.20 g/t Au and 14.2 g/t Ag
including 5.0 metres of 28.45 g/t Au and 53.7 g/t Ag
LC11-01 3.0 metres of 62.96 g/t Au and 61.7 g/t Ag
LC11-02 3.0 metres of 12.01 g/t Au and 13.1 g/t Ag
LC11-05 5.0 metres of 8.63 g/t Au and 3.5 g/t Ag

Trenching

SAM17-CATA-111 (Exploration Pit) 1.0 metre of 138.20 g/t Au and 156.0 g/t Ag vertical
SAM17-CATA-109 (Exploration Pit) 1.3 metres of 13.80 g/t Au and 12.7 g/t Ag vertical
SAM17-TR-22 1.5 metres of 10.20 g/t Au and 2.5 g/t Ag vertical
SAM17-TR-21 0.9 metre of 66.50 g/t Au and 98.8 g/t Ag vertical
SAM17-TR-27 2.0 metres of 13.80 g/t Au and 27.4 g/t Ag vertical
EXP17-SAM12-TR-11 1.0 metre of 12.58 g/t Au and 11.2 g/t Ag vertical
SAM17-TR-18 1.5 metres of 13.20 g/t Au and 6.5 g/t Ag vertical
SAM17-TR20 1.8 metres of 13.00 g/t Au and 11.1 g/t Ag vertical
SAM17-TR06 Extension 0.6 metre of 128.10 g/t Au and 94.2 g/t Ag vertical
SAM17-TR06 Extension 1.7 metres of 8.88 g/t Au and 26.4 g/t Ag vertical
SAM17-TR02 1.3 metres of 6.63 g/t Au and 6.8 g/t Ag vertical
SAM12-TR11 7.0 metres of 12.14 g/t Au and 28.4 g/t Ag along dip
including 2.0 metres of 38.09 g/t Au and 52,8 g/t Ag
INT11-TR01 8.2 metres of 20.64 g/t Au and 26.87 g/t Ag along dip
INT11-TR03 12.8 metres of 16.05 g/t Au and 9.9 g/t Ag along dip
including 3.0 metres of 40.97 g/t Au and 23.7 g/t Ag
LC11-TR 22 5.0 metres of 14.78 g/t Au and 21.1 g/t Ag along dip
LC11-TR 23 4.0 metres of 5.35 g/t Au and 5.1 g/t Ag along dip
LC11-TR 30 1.0 metre of 18.59 g/t Au and 4.4 g/t Ag along dip
SAM12-TR 04 1.0 metre of 87.57 g/t Au and 76.5 g/t Ag along strike
LC11-TR 21 14.0 metres of 5.89 g/t gold and 11.8 g/t Ag along dip
Rosibel Pit 1.5 metres of 29.30 g/t Au and 44.7 g/t Ag, and vertical
Rosibel Pit 2.0 metres of 139.44 g/t Au and 115 g/t Ag along strike
SAM13-TR 23 1.0 metre of 31.14 g/t Au and 318.0 g/t Ag, and vertical
SAM12-TR 02 1.5 metres of 99.27 g/t Au and 26.7 g/t Ag along dip

Historical artisanal mining within the area was generally small-scale, with only basic tools and manual labour used for excavation. Historical activities comprise several relatively narrow adits and a number of shallow pits, where only a portion of the structure was removed and processed. Sampling of select old workings indicates that significant gold values remain in situ below the disturbed area. Underground channel sampling at Mina Francisco, consisting of 35 vertical samples over a 12-metre strike length, returned an average thickness of 1.56 metres grading 13.04 g/t Au and 22.7 g/t Ag (see news release dated June 24, 2014), and included the following:

  • 2.0 metres of 33.35 g/t Au and 42.8 g/t Ag (vertical)
  • 2.0 metres of 26.45 g/t Au and 30.7 g/t Ag (vertical)
  • 2.0 metres of 23.87 g/t Au and 40.8 g/t Ag (vertical)

The preliminary metallurgical testing (gravity recovery followed by the cyanidation of gravity tailings), from composite trench samples at Las Conchitas, returned very positive results averaging:

  • 95.7% gold and 68.5% silver recovery, grading on average 8.70 g/t Au and 20.10 g/t Ag.

These are excellent preliminary results and are comparable to those reported for the San Albino Gold Deposit.