Rainy River Announces High-Grade Infill Drilling Results
TORONTO, ONTARIO -- (Marketwire) -- 01/11/11 -- Rainy River Resources Ltd. ('Rainy River' or the 'Company') (TSX VENTURE: RR) is pleased to announce drill results from the Rainy River Gold Project (the 'RRGP') in Northwestern Ontario. These results are from the remaining drill holes of the 2010 infill drilling program and will be included in the updated NI 43-101 resource estimate expected to be completed by the middle of the first quarter. Results from all holes are summarized in Table 1: Summary of Results, at the end of this release.
Highlights
-- Remaining 2010 infill results continue to intersect high-grade gold
-- NR10-606 returns 30.0 g/t gold over 4.5 m in ODM Zone
-- NR10-608 returns 9.3 g/t gold over 13.5 m in ODM Zone
-- Cap Zone showing promising exploration upside with wider zones of
significant gold mineralization in NR10-610 - 1.2 g/t gold over 39.0 m
-- NR10-610 returns 6.8 g/t gold over 4.5 m in ODM Zone and demonstrates
the potential for additional high-grade discoveries at depth
-- High-grade zinc and silver assays encountered in ODM Zone
To view the maps associated with this press release, please click on the following link: http://media3.marketwire.com/docs/rr110.pdf
ODM Zone Drilling
Results from the ODM Zone continue to intersect high-grade gold mineralization at depths to 650 metres below surface, showing improved deposit continuity and the opening up of new areas for potential resource expansion.
Diamond drill hole NR10-609 intercepted 6.4 g/t gold over 31.5 m including 9.3 g/t gold over 19.5 m at a vertical depth of 477 metres. This intersection lies approximately 30 metres down-dip from drill hole NR10-602 and demonstrates excellent short-range continuity. NR10-602 returned 6.4 g/t gold over 13.9 m, including 30.0 g/t gold over 1.5 m at a depth of 459 m. Approximately 150 metres down-plunge of NR10-602, drill hole NR10-605 reported additional high-grade intersections of 5.3 g/t gold over 7.5 m, including 10.4 g/t gold over 1.5 m and 12.9 g/t gold over 1.5 m.
At a vertical depth of 650 metres, drill hole NR10-610 intersected 6.8 g/t gold over 4.5 m including 16.5 g/t gold over 1.5 m. This intercept is one of the deepest ever recorded in the ODM zone and its location is significant in that it demonstrates the potential for additional discoveries and resource expansion at depth. NR10-610 is located 171 metres due east of NR07-214 (see press release dated May 27, 2008) which returned 7.43 g/t gold over 4.5 m at the same vertical depth. The intersection surrounding drill hole NR10-610 is also open for several hundred meters along its plunge length, and will be a key focus for expanding resources in the 2011 exploration program.
Other significant infill results include NR10-611 with 9.3 g/t gold over 13.5 m, including 60.4 g/t gold over 1.5 m and 9.7 g/t gold over 1.5 m at a vertical depth of 476 metres. Drill hole NR10-606 returned encouraging gold values with 30.0 g/t gold over 4.5 m, including 54.8 g/t gold over 1.5 m and 34.8 g/t gold over 1.5m, at approximately 355 metres below surface.
Closer to surface, drill hole NR10-608 intersected several high-grade gold intersections including 4.6 g/t over 10.5 m, which includes 6.0 g/t gold over 7.5 m, and a deeper intercept grading 9.3 g/t gold over 13.5 m, including a high grade intercept of 70.2 g/t gold over 1.5 m at 232 metres below surface.
Cap Zone Drilling
Infill drilling also intersected significant gold mineralization in the Cap Zone, an area approximately 300 metres to the south of the ODM Zone. The Cap Zone has seen little focused exploration and is an exciting target for its potential to add additional resources at the RRGP. Highlights from the Cap Zone include drill hole NR10-602 with 1.5 g/t gold over 10.5 m at 128 m below surface, drill hole NR10-605 with 1.1 g/t gold over 22.5 m at 250 m vertical depth and drill hole NR10-610 which intersected 1.2 g/t gold over 39.0 m at a depth of 294 m below surface.
ODM Zone Zinc and Silver Results
Assay data for all other elements, including zinc and silver, have been received for drill hole NR10-587, which was one of three holes successfully drilled down the plunge of the ODM Zone to test continuity and grade within the zone (see press release dated November 30, 2010). Final assay data indicates that in addition to the gold, which returned 227.4 g/t over 0.5 m as previously announced, high-grade silver is also present, with 190.0 g/t silver assayed over the same interval of 165.0 to 165.5 m. Further down the hole, from 327.5 to 336.5 m, a 9.0 m wide interval grading 7.4 g/t gold, 3.6% zinc and 14.3 g/t silver was returned. This includes a higher-grade interval of 20.1 g/t gold (previously announced) plus 13.5% zinc and 52.0 g/t silver over 1.5 m. These are the highest-grade zinc results returned to date within the ODM Zone. The strong geochemical correlation in the ODM Zone with sericte, pyrite, gold /- zinc and the zonation into the Cap Zone to sericite, /- black chlorite, gold, pyrite /- copper mineralization continue to demonstrate that the Rainy River Deposit hosts strong similarities to a precious-metal-rich volcanogenic mineralizing system.
Commentary
'Results from the infill program are very encouraging and, while adding a great deal of new information for the next NI 43-101 resource update, the infill program has also demonstrated the enormous potential for further discoveries of volcanogenic gold and VMS deposits,' commented Raymond Threlkeld, President and CEO. 'Based on the success of the 2010 exploration program, the Company has approved a $57 million budget for 2011 that includes over 100,000 metres of infill and regional diamond drilling, initiating an underground exploration program and moving all relevant engineering and environmental studies to the feasibility level. We will also be conducting an aggressive exploration program at the TPK joint venture project, with 11,000 m of drilling planned to follow up on the recent high-grade gold discovery.'
Corporate Update
Rainy River also announces the appointment of Gerald J. ('Gerry') Shields to the position of Vice President and General Counsel for Rainy River. Mr. Shields was formerly Vice President, Administration for the Company and also serves as a director of Rainy River.
In addition, the Company announces that as part of its long term incentive program for employees, management and directors, the Company has granted options to acquire 1,660,000 common shares of the Company at the exercise price of $12.65 per share for a period of 5 years. The options will vest over a period of two years.
Qualified persons
Rainy River's exploration program in Richardson Township is being supervised by Kerry Sparkes, P.Geo. Vice-President Exploration, a Qualified Person as defined by National Instrument 43-101. Garett Macdonald, P.Eng., is the person responsible for the content of this news release. The Company continues to implement a rigorous QA/QC program to ensure best practices in sampling and analysis of drill core. The procedures of the QA/QC program are detailed on Rainy River's website at www.rainyriverresources.com.
About Rainy River
Rainy River is a Canadian precious metals exploration company whose key asset is the Rainy River Gold Project. With approximately $138 million in its treasury, the Company is well positioned to focus on expanding and optimizing the known resources at the Rainy River gold project through its advanced (underground) exploration program as well as drilling exploration targets outside of the known resource area. The Rainy River Gold Project property is extremely well located in the southwestern corner of Northern Ontario near the U.S. border, is accessible year round by a network of roads and is close to hydro-electric infrastructure. The Rainy River district has a skilled labour force and is one of the lowest-cost areas for mineral exploration and development in Canada. The Company is also working to advance the early-stage discoveries at its TPK Joint Venture Property, also in Ontario, where it can earn a 51% interest in the property from Northern Superior Resources. Ontario has low political risk and, according to the annual Fraser Institute global survey of the mining industry, has consistently ranked as one of the top jurisdictions embracing mineral development.
RAINY RIVER RESOURCES LTD.
Raymond Threlkeld, President & CEO
This release includes certain statements that may be deemed to be 'forward-looking statements'. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.
Table 1: Summary of Results
VERTI-
CAL CORE
DEPTH LENGTH
HOLE-ID NORTHING (M) FROM (M) TO (M) (M) AU (G/T) ZONE
NR10-599 5409562 280 301.5 351.3 49.8 0.75 ODM
-----------------------------------------------------------------
NR10-601 5409415 28 29.0 30.5 1.5 3.38 CAP
5409558 331 336.5 393.5 57.0 1.47 ODM
INCL 5409545 308 338.0 339.5 1.5 22.02 ODM
AND 5409571 355 392.0 393.5 1.5 10.46 ODM
-----------------------------------------------------------------
NR10-602 5409325 128 129.0 139.5 10.5 1.53 CAP
5409459 453 479.6 493.5 13.9 6.38 ODM
INCL 5409457 449 481.5 483.0 1.5 13.30 ODM
AND 5409459 453 486.0 487.5 1.5 5.45 ODM
AND 5409461 459 492.0 493.5 1.5 29.98 ODM
5409482 499 535.5 541.5 6.0 2.84 ODM
INCL 5409481 497 535.5 537.0 1.5 4.29 ODM
AND 5409483 501 540.0 541.5 1.5 4.64 ODM
-----------------------------------------------------------------
NR10-603 5409349 63 66.5 68.0 1.5 2.70 CAP
5409407 187 204.5 205.3 0.8 3.40 HW ODM
5409455 280 305.0 314.0 9.0 1.93 ODM
5409485 333 359.0 383.0 24.0 1.07 ODM
5409506 368 411.5 413.0 1.5 3.33 ODM
5409511 377 422.0 423.5 1.5 2.47 ODM
-----------------------------------------------------------------
NR10-604 5409309 65 59.0 78.5 19.5 0.76 CAP
5409320 90 86.0 107.0 21.0 0.68 CAP
5409338 133 138.5 147.5 9.0 1.63 CAP
5409523 458 516.5 518.0 1.5 3.02 ODM
-----------------------------------------------------------------
NR10-605 5409261 250 265.5 288.0 22.5 1.10 CAP
5409274 270 300.5 301.5 1.0 3.29 CAP
5409372 414 474.0 475.5 1.5 2.28 HW ODM
5409426 489 567.0 568.5 1.5 2.22 HW ODM
5409459 532 618.0 625.5 7.5 5.33 ODM
INCL 5409458 531 619.5 621.0 1.5 10.44 ODM
AND 5409459 532 621.0 622.5 1.5 12.89 ODM
-----------------------------------------------------------------
NR10-606 5409446 47 53.9 55.1 1.2 8.03 CAP
5409539 285 309.5 311.0 1.5 3.37 ODM
5409551 312 339.5 341.0 1.5 4.10 ODM
5409572 357 387.5 392.0 4.5 29.97 ODM
INCL 5409571 356 387.5 389.0 1.5 54.78 ODM
AND 5409573 359 390.5 392.0 1.5 34.81 ODM
-----------------------------------------------------------------
NR10-607 5409543 185 201.5 206.0 4.5 7.92 ODM
INCL 5409543 184 201.5 203.0 1.5 22.57 ODM
5409559 222 237.5 249.5 12.0 1.43 ODM
INCL 5409559 221 242.0 243.5 1.5 6.08 ODM
5409688 469 522.5 524.0 1.5 2.37 HS
-----------------------------------------------------------------
NR10-608 5409564 184 207.5 218.0 10.5 4.6 ODM
INCL 5409564 184 209.0 216.5 7.5 6.00 ODM
INCL 5409563 182 209.0 210.5 1.5 5.31 ODM
AND 5409563 183 210.5 212.0 1.5 7.41 ODM
AND 5409566 187 215.0 216.5 1.5 16.53 ODM
5409592 227 257.0 270.5 13.5 9.33 ODM
INCL 5409588 222 257.0 258.5 1.5 9.81 ODM
AND 5409595 232 269.0 270.5 1.5 70.23 ODM
5409626 276 323.0 326.0 3.0 6.66 ODM
INCL 5409626 276 323.0 324.5 1.5 11.05 ODM
5409707 380 456.5 458.0 1.5 2.53 HS
5409739 418 506.0 507.5 1.5 5.36 HS
-----------------------------------------------------------------
NR10-609 5409290 143 140.0 164.0 24.0 0.78 CAP
INCL 5409295 153 162.5 164.0 1.5 4.07 CAP
5409317 203 216.5 219.5 3.0 5.75 CAP
INCL 5409317 203 216.5 218.0 1.5 8.64 CAP
5409401 377 410.9 412.9 2.0 5.58 HW ODM
5409432 438 479.2 481.2 2.0 4.56 HW ODM
5409451 474 506.0 537.5 31.5 6.38 ODM
INCL 5409453 477 515.0 534.5 19.5 9.25 ODM
INCL 5409449 469 515.0 516.5 1.5 7.18 ODM
AND 5409450 472 518.0 519.5 1.5 31.20 ODM
AND 5409451 473 519.5 521.0 1.5 31.64 ODM
AND 5409455 481 528.5 530.0 1.5 18.90 ODM
AND 5409457 485 533.0 534.5 1.5 13.46 ODM
5409475 517 570.5 572.0 1.5 11.79 ODM
-----------------------------------------------------------------
NR10-610 5409192 294 294.0 333.0 39.0 1.22 CAP
INCL 5409192 294 307.5 318.0 10.5 2.96 CAP
5409349 598 655.5 657.0 1.5 3.83 ODM
5409360 617 678.0 679.5 1.5 2.64 ODM
5409370 634 697.5 699.0 1.5 2.35 ODM
5409380 650 715.5 720.0 4.5 6.84 ODM
INCL 5409381 652 718.5 720.0 1.5 16.46 ODM
-----------------------------------------------------------------
NR10-611 5409275 181 198.0 208.5 10.5 1.38 CAP
5409291 206 231.0 235.5 4.5 1.48 CAP
5409301 221 250.5 252.0 1.5 2.77 CAP
5409459 435 516.0 520.5 4.5 3.21 ODM
5409489 472 559.5 573.0 13.5 9.29 ODM
INCL 5409486 468 561.0 562.5 1.5 9.72 ODM
AND 5409491 474 568.5 570.0 1.5 4.58 ODM
AND 5409493 476 571.5 573.0 1.5 60.37 ODM
5409514 501 604.5 606.0 1.5 3.61 ODM
-----------------------------------------------------------------
NR10-613 5409241 246 243.0 274.5 31.5 1.14 CAP
5409359 561 576.0 615.0 39.0 1.47 ODM
INCL 5409362 570 604.5 606.0 1.5 7.24 ODM
-----------------------------------------------------------------
VERTI-
CAL CORE
DEPTH LENGTH AU AG
HOLE-ID NORTHING (M) FROM (M) TO (M) (M) (G/T) (G/T) ZN (%) ZONE
--------------------------------------------------------------------------
NR10-587 5409562 258 327.5 336.5 9.0 7.37 14.30 3.6 ODM
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Rainy River Resources Ltd.
Liz Caridi
Director of Investor Relations and Corporate Governance
(604) 639-4497
lcaridi@rainyriverresources.com
www.rainyriverresources.com