Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

May 16, 2011 09:08 ET

13.9 g/t Gold & 353.3 g/t Silver Intercepted Over 4.5 Metres in 17 East Extension Zone

TORONTO, ONTARIO--(Marketwire - May 16, 2011) - Rainy River Resources Ltd. (TSX VENTURE:RR) (the "Company" or "Rainy") is pleased to announce assay results from the Rainy River Gold Project in northwest Ontario where the Company is completing 170,000m of diamond drilling in 2011. Results are summarized in Table 1.

Highlights

  • 17 Zone Eastern Extension continues to expand significantly with high-grade gold and silver at depth

  • NR10621E intersects 13.9 g/t gold and 353.3 g/t silver over 4.5 metres

  • NR10627E intersects 69.7 g/t gold and 17.7 g/t silver over 1.5 metres

  • HS & 433 Zones return significant gold and silver values from infill program

17 East Extension Zone

Deep Exploration on the recently discovered 17 East Extension Zone continues to intersect encouraging gold results with a significant silver component, making this one of the most exciting new areas for resource expansion. Drill hole NR10621E intersected a wide zone of high-grade gold and silver mineralization at a vertical depth of approximately 600 metres. Assay results for the hole report 2.1 g/t gold and 53.4g/t silver over 33.0m, including 13.9 g/t gold and 353.3 g/t silver over 4.5m. Drill hole NR11677 returned a 6.0m intersection grading 2.2 g/t gold and 66.7 g/t silver at a vertical depth of 704 metres, while drill hole NR11676 intersected gold and silver mineralization at a vertical depth of 572 metres, including 28.5m grading 1.1 g/t gold and 11.9 g/t silver, and including 9.0m grading 2.5 g/t gold and 19.3g/t silver. Assay results also include hole NR11627E which returned values of 69.7 g/t gold & 17.7 g/t silver over 1.5 metres, at a vertical depth of 674 metres. Intercepts reported for holes NR11676 and NR11677 lie 175m up-dip, and 60m west of hole NR11653, respectively. That hole had returned values of 4.6 g/t gold over 13.5 metres (see press release dated March 30, 2011).

To date, six widely spaced holes have intersected significant gold and silver mineralization in the deep extension of the 17 East Extension Zone. Six diamond drills have now been deployed to this new zone, which is open down-plunge and represents excellent potential to add high-grade underground ounces to the Rainy River Gold Project.

HS Zone

Several intersections within the HS Zone are reported from the last round of infill drilling. Notable intercepts include drill hole NR11663 which intersected 12.9 g/t gold and 187.0 g/t silver over 1.5m, including a second intersection of 4.3 g/t gold and 8.1 g/t silver over 1.6m at a depth of approximately 110 metres. Further results from the HS Zone include 7.2 g/t gold and 44.3 g/t silver over 1.5m in hole NR11659, and a 10.5m-wide intercept grading 2.8 g/t gold and 2.0 g/t silver (including 15.3 g/t gold and 3.8 g/t silver over 1.5m) in drill hole NR11684. Near surface, drill hole NR 11681 returned 3.5 g/t gold and 24.4 g/t silver over 1.5m, while deeper in the Zone, drill hole NR11673 intersected 1.5m grading 6.8 g/t gold and 6.3 g/t silver.

433 & ODM Zones

Notable intersections include drill hole NR11656, which intersected 6.6 g/t gold and 137.0 g/t silver over 1.2 metres within the 433 Zone, and drill hole NR11666, which returned 2.5 g/t gold and 25.9 g/t silver over 1.5 metres within the ODM Zone. Both intercepts were encountered at depths at vertical depths within 100 metres from surface.

District Exploration

The Company's district exploration program is ongoing, with two drill rigs following up on gold-in-till anomalies identified from past reverse circulation drill programs. Exploration drilling north of the main deposit area returned encouraging results including drill hole NR11689 with 15.1 g/t gold reported over 0.8m, drill hole NR11690 with 1.0 g/t gold and 11.1 g/t silver reported over 3.2m, and drill hole NR11683 which intersected 0.7 g/t gold over 10.5m.

Exploration near the Western Area also returned some encouraging results over narrow widths at shallow depths. Drill holeNR11672 intersected 33.0 g/t gold over 0.5m at 48 metres below surface. Other drill hole results include NR11671 with 1.3 g/t gold returned over 6.0m, and NR11661 with 8.1 g/t gold over 1.5mat similar depths of approximately 50m.

Commentary

Raymond Threlkeld, President and CEO, adds "The 17 East Extension discovery announced in late March, and subsequent wide-spaced exploration of that zone are demonstrating the exciting potential that the Rainy River district contains. The new zone not only contains significant gold values, but high silver values over a widespread and continuous area that is open in all directions. We will continue to aggressively drill in 2011 to define the district-wide and depth potential at Rainy River, in addition to advancing with our planned Preliminary Economic Assessment of the current resource."

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., Vice President Operations and Kerry Sparkes P.Geo. are the persons 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. 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. implements independent QA/QC protocols that include the insertion of certified blanks and standards as part of their routine analysis.

About Rainy River Resources Ltd.

Rainy River Resources is a Canadian precious metals exploration company whose key asset is the Rainy River Gold Project. With over $130 million in cash and short term investments, the Company is well funded to conduct a dual-focused drilling program consisting of:1) definition diamond drilling of the main gold resources in preparation for scoping and pre-feasibility studies, and 2) selective diamond drill testing of high-priority gold targets defined primarily by RC drilling within the large gold system centered in Richardson Township. The Company's property is extremely 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. 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 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 & 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 fact, that address events or developments that the Company expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company 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 may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, continued availability of capital and financing and general economic, market or business conditions. The Company cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Company's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Please see the public filings of the Company at www.sedar.com for further information.

Table 1 Summary of Results

HOLESECTIONELEVATIONFROM (m)TO (m)LENGTH (m)AU g/tAG g/tCOMMENTS
NR10621E426317603753.0786.033.02.153.417 EAST
INCL426316600763.5768.04.513.9353.317 EAST
INCL426316599763.5765.01.517.2538.017 EAST
AND426316600765.0766.51.512.3241.017 EAST
AND426316601766.5768.01.512.2281.017 EAST
426322623798.0799.51.57.65.717 EAST
NR10627E426229663727.0733.06.00.933.317 EAST
INCL426230665731.5733.01.52.890.317 EAST
426231674742.0743.51.569.717.717 EAST
426234690755.5767.512.01.712.217 EAST
INCL426235692763.0764.51.53.713.717 EAST
AND426235693764.5766.01.53.237.717 EAST
AND426235694766.0767.51.51.229.917 EAST
NR1165642527095115.0118.03.00.41.7ODM
425258344440.4441.61.26.6137.0433 WEST
NR11659424939191239.0239.60.63.08.1HW BP
424941268335.0344.09.00.82.6BP
424942284360.5362.01.57.244.3HS
424951410529.0530.01.03.04.9HS
NR116614241102838.039.51.51.10.5WESTERN AREA
4241105168.069.51.58.11.9WESTERN AREA
4241105574.075.51.51.70.3WESTERN AREA
4241116181.583.01.51.40.3WESTERN AREA
42411292123.5125.01.51.50.4WESTERN AREA
NR1166342514799117.0118.51.512.9187.0HS
425146120142.4144.01.64.38.1HS
425140210258.0259.51.51.50.7HS
NR11664425246101121.5123.01.51.70.9HS
425246105126.0127.51.51.30.5HS
NR116664252195260.562.01.52.525.9ODM
425217103120.5128.07.50.76.7ODM
425215369468.0469.01.03.61.6HS
NR11667425297195243.0244.51.56.93.8433 WEST
NR11668424998207249.5251.01.52.53.0BP
425001237287.0288.51.53.56.3BP
425016420518.0519.51.59.12.9HS
NR1166942517496115.5117.01.56.01.0HS
425172136166.5168.01.51.41.1HS
425168184229.5231.01.52.29.5HS
NR116704252106375.076.51.50.70.3HS
NR116714241794665.071.06.01.30.3WESTERN AREA
NR116724242884864.765.20.533.00.4WESTERN AREA
4242875066.568.01.52.50.1WESTERN AREA
NR11673425098158198.0199.51.56.86.3HS
NR116744247324254.055.51.51.13.3HW BP
NR11674424751240316.5318.01.51.81.4BP
NR1167542537689125.0126.51.51.50.4DISTRICT
NR11676426113511598.5600.01.53.44.1HW 17
426117530622.5624.01.52.16.2HW 17
426126572652.5681.028.51.111.917 EAST
INCL426126572672.0681.09.02.519.317 EAST
426134610726.0727.81.87.05.617 EAST
NR11677426026648716.8718.51.72.91.817 EAST
426033704781.5787.56.02.266.717 EAST
INCL426033703781.5783.01.54.093.617 EAST
AND426033704783.0784.51.51.133.817 EAST
AND426033705784.5786.01.52.8103.017 EAST
AND426033706786.0787.51.51.136.317 EAST
426037732813.0819.56.51.38.717 EAST
NR11678424096144176.0177.51.52.92.5WESTERN AREA
424096151185.0188.03.01.30.7WESTERN AREA
424097168206.0207.51.51.70.3WESTERN AREA
NR11679NSA
NR1168042544082117.5119.01.50.90.7DISTRICT
NR116814253004451.052.51.53.524.4HS
425305218270.0271.51.51.00.3433 WEST
NR116834252436189.099.510.50.70.4DISTRICT
NR11683425243101147.5149.01.51.00.5DISTRICT
NR116844255296253.089.036.00.54.0ODM
425527164188.0189.51.51.98.4HS
425527193218.0228.510.52.82.0HS
INCL425527193222.5224.01.515.33.8HS
NR11685425152137194.0197.03.01.40.4DISTRICT
425153158222.5224.01.51.90.3DISTRICT
NR1168642514873109.6110.61.02.00.6DISTRICT
NR11687425336150184.5186.01.53.64.4HS
425336159195.0196.51.51.30.3HS
425329278345.0346.51.55.31.9433 WEST
NR116884254016376.077.51.52.51.0HS
425404179221.5223.01.51.111.0433 WEST
NR11689425152103141.0141.70.71.10.6DISTRICT
425152104142.2143.00.815.10.5DISTRICT
NR116904251505469.572.73.21.011.1DISTRICT

To view the figures associated with this release, please visit the following links:

http://media3.marketwire.com/docs/RRfig1.pdf

http://media3.marketwire.com/docs/RRfig2.pdf

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.

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