TORONTO, July 19, 2012 /CNW/ - Rainy River Resources Ltd. ("Rainy River" or the "Company" (RR.TSX)) is pleased to announce assay results from the Rainy River Gold Project ("RRGP") in northwest Ontario. Results are summarized in Table 1.
- Deep drilling shows continuity of mineralized zones well below resource depth: NR121256 intersected 34.8 g/t gold and 6.9 g/t silver over 1.5 metres approximately 250 metres down dip of the ODM Zone, representing the deepest intersection of ODM mineralization to-date.
- Grade continuity drilling continues to show elevated grades in proposed starter pit: NR121286 intersected 84.0 metres grading 2.9 g/t gold and 3.0 g/t silver from 63.0 metres to 147.0 metres down hole and within the proposed starter pit.
- Infill drilling continues to show high grades near the bottom of the proposed open pit, with BH12UG01 intersecting 4.9 g/t gold and 3.7 g/t silver over 45.0 metres at a vertical depth of 531 metres.
As part of a long term exploration strategy to explore well below the depths of the known mineralization, a series of deep diamond drill holes have commenced to explore for extensions of known mineralization approximately 250 metres below current known extents of all mineralized zones. NR121256 was the first of a series of pilot holes that will be used for multiple wedge cuts to target higher grade plunging mineralized shoots that would support underground mining. The initial pilot hole, now complete at 1,705 metres, successfully intersected both CAP and ODM stratigraphy well below known mineralized extents.
NR121256 intersected 1.1 g/t gold and 5.1 g/t silver over 9.0 metres at a vertical depth of 734 metres and 1.9 g/t gold and 7.5 g/t silver over 3.8 metres at a vertical depth of 774 metres within the CAP Zone. In addition, NR121256 intersected 34.8 g/t gold and 6.9 g/t silver over 1.5 metres at a vertical depth of 971 metres and 1.2 g/t gold and 6.7 g/t silver over 10.5 metres at a vertical depth 995 metres within the ODM. These results clearly demonstrate that the Rainy River mineralizing system is deep rooted, and that with further wedging, continuous high grade mineralized shoots could be discovered.
Grade Continuity Drilling In-Pit
As part of an ongoing effort to demonstrate continuity along the plunge trend of the deposit and to continue upgrading high quality ounces to the measured category, several down plunge holes have been drilled within the ODM Zone (targeting medium grade to high grade zones). Down plunge drilling within ODM Zone is now complete, with results tabulated for the final two holes.
NR121286 was collared 110 metres east of previously released NR121236, which graded 4.5 g/t gold and 5.7 g/t silver over 55 metres from 55.5 to 111.0 metres down-hole (see news release dated May 29, 2012), and along the trend of the same mineralized shoot. NR121286 intersected 84.0 metres grading 2.9 g/t gold and 3.0 g/t silver from 63.0 metres - 147.0 metres down hole. Both of these holes demonstrate comparable plunge continuity along a significant strike extent, near surface and within the proposed starter pit.
Other significant intersections within these down plunge holes include: 1.5 g/t gold and 1.2 g/t silver over 25.5 metres from 165.0 - 190.5 metres down hole and 5.7 g/t gold and 4.4 g/t silver over 10.5 metres down-hole from 286.5 - 297.0 metres in NR121286, and 2.5 g/t gold and 2.3 g/t silver over 25.5 metres from 196.5 - 222.0 metres down-hole in NR121273, and 1.1 g/t gold and 2.5 g/t silver over 42.0 metres from 271.5 - 313.5 metres down-hole.
Since the February 24, 2012 National Instrument 43-101 compliant resource estimate, Rainy River Resources has continued to systematically target all remaining inferred resources within the open pit for upgrading, and possible inclusion in, the feasibility study for the RRGP. Final assay results have been received, and significant results are highlighted below:
- 4.9 g/t gold and 3.7 g/t silver over 45.0 metres at a vertical depth of 531 metres in BH12UG01;
- 1.8 g/t gold and 1.7 g/t silver over 16.5 metres at a vertical depth of 498 metres in NR121089; and
- 4.2 g/t gold and 3.5 g/t silver over 6.0 metres at a vertical depth of 561 metres in NR121096.
- 4.7 g/t gold and 21.2 g/t silver over 8.1 metres at a vertical depth of 419 metres in NR121270 (below pit); and
- 1.9 g/t gold and 8.4 g/t silver over 4.5 metres at a vertical depth of 247 metres in NR121225 (within pit).
- 2.3 g/t gold and 0.7 g/t silver over 24.0 metres at a vertical depth of 61 metres in BH12OP04 (within pit).
17 Deep Zone
- 7.0 g/t gold and 3.3 g/t silver over 3.0 metres at a vertical depth of 647 metres in NR121287.
The Company demobilized six diamond drill rigs on May 31, 2012, upon the completion of the infill program, and an additional two rigs on June 30, 2012. These rigs were demobilized as part of the Company's mandate to remain fiscally prudent. A ninth rig will be demobilized in early September, and the Company plans to continue its exploration efforts for the balance of the year with three remaining diamond drill rigs. Two of these drill rigs will continue to focus on deep drilling while one drill rig will explore potential along strike.
To date, 157 condemnation holes, totalling 31,122 metres, were drilled to support infrastructure development. This work is ongoing as part of the feasibility study and future development of the project.
Raymond Threlkeld, President and CEO of Rainy River Resources Ltd., commented: "The continuity of mineralization, as indicated by our deep drilling results, has been very encouraging, as have the elevated grades we have encountered within the proposed starter pit and near the ultimate pit bottom. Over the remainder of the year, Rainy River plans to focus exploration efforts on deep drilling as well as district targets in order to expand resources."
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. Mr. Sparkes P.Geo. is also the person responsible for the content of this news release. The Company has a rigorous QA/QC program in place to ensure best practices in sampling and analysis of drill core. All drill core is marked for sampling and then split in half with a diamond saw blade. Samples are placed in sealed bags with security tags. All samples were assayed using a standard fire assay, 30 gram nominal sample weight with an AA finish. Over-limit samples were re-assayed with a gravimetric finish. Samples with visible gold were automatically analyzed for Ore Grade by 1000g screen fire assay, with coarse and fine fractions being combined proportionately and the fine fraction being assayed twice. Standards, blanks and duplicates are inserted every 25 metres. ALS Canada Ltd. performed primary assaying, with duplicates being analyzed at Activation Laboratories Ltd. ALS Canada Ltd. and Activation Laboratories Ltd. implement independent QA/QC protocols that include the insertion of certified blanks and standards as part of their routine analysis.
About Rainy River
Rainy River Resources Ltd. is a Canadian precious metals exploration company whose key asset is the Rainy River Gold Project, a large gold system centred in Richardson Township (part of Chapple Township). As of March 31, 2012, the Company had approximately $100 million in cash and cash equivalents, and remains well funded for its 2012 plans to 1) commence a feasibility level study on the RRGP; 2) continue growing the existing resource through exploration; 3) conduct a condemnation program in areas identified for potential mine facilities; and 4) continue regional exploration. RRGP is very well located in the southwestern corner of northern Ontario, near the U.S. border. It is accessed 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 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 Inc. 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 W. Threlkeld
President and CEO
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
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. These statements include the possible conversion of inferred resources into higher confidence categories of resources. 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.
|From (m)||To (m)||Length (m)||Au (g/t)||Ag (g/t)||Zone|
|NR121256||424886||734||807.0||816.0||9.0||1.1||5.1||Cap Very Deep|
|NR121256||424892||774||858.0||861.8||3.8||1.9||7.5||Cap Very Deep|
*Note: Holes were drilled for geotechnical purposes, with different naming convention.
SOURCE Rainy River Resources