Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

March 24, 2010 11:55 ET

Rainy River Announces High-Grade Gold Results and Continued Exploration Success

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 24, 2010) - Rainy River Resources Ltd. (TSX VENTURE:RR) -

Highlights:

  • 433 Zone continues to return high-grade gold – 221.73 g/t gold over 1.5 metres, 62.26 g/t gold over 1.5 metres, 44.85 g/t gold over 1.5 metres
  • New gold zone discovered 200 metres west of 433 Zone – 32.60 g/t gold over 1.0 metre
  • Beaver Pond yields 22.15 g/t gold over 1.5 metres, 1.39 g/t gold over 16.5 metres
  • Exploratory drilling yields 12.32 g/t gold over 2.0 metres, 1,000 metres west of Beaver Pond Zone
  • New gold mineralization discovered 250 metres above CAP/South Zones – 4.43 g/t gold over 3.0 metres

Rainy River Resources Ltd. (the "Company" or "Rainy") is pleased to announce further exploration results from the Rainy River gold project in Northwestern Ontario.

433 Zone Continues to Yield High-Grade Gold – 221.73 g/t (6.47 oz/t) Gold over 1.5 metres

Assay results for a total of five drill holes have been received from the Company's 2010 infill drilling program on the 433 Zone. Most notably, NR10-463 intersected a very impressive 221.73 g/t (6.47 oz/t) gold over 1.5 metres on the western edge of the 433 Zone within a wider, well mineralized intercept of 26.21 g/t gold over 13.5 metres. This new intersection has increased the known strike length of the 433 Zone at the -200 metre level to 145 metres. Approximately 60 metres down dip of NR10-463, a wide interval grading 0.61 g/t gold over 13.5 metres including 4.62 g/t gold over 3.0 metres was intersected in hole NR10-470.

On the eastern edge of the 433 Zone, NR09-449 intersected 8.26 g/t over 21.0 metres including three (3) gold intervals grading 20.99 g/t, (0.61 oz/t), 62.26 g/t (1.82 oz/t) and 44.85 g/t (1.31 oz/t) gold each over 1.5 metres. Length-weighted composites are outlined in Table 1.

High-Grade Gold Mineralization Discovered 200 metres West of 433 Zone

Drill holes NR09-443 and NR09-447 have both intersected new gold mineralization in a previously untested area 200 metres west of the 433 Zone at ~120 metres below surface. NR09-443 intersected 32.60 g/t (0.95 oz/t) gold over 1.0 metres and is located 40 metres west of NR09-447 which intersected 5.77 g/t gold over 1.5 metres. These new occurrences remain open 130 metres up plunge to surface and are open down plunge to holes NR09-450 and NR10-460 which intersected 2.08 g/t gold over 1.5 metres and 2.23 g/t gold over 3.0 metres respectively. Further drilling in this area is being planned to ascertain the significance of the new intersections.

Beaver Pond Drilling Program Demonstrates Continuity of High-Grade Gold

Assay results for a total of seven initial drill holes have been received for the 2010 Beaver Pond winter drilling campaign. The focus of the 2010 program is to further define the new and underexplored high-grade gold intersection discovered in hole NR09-446 which graded 352.84 g/t (10.29 oz/t) gold over 6.0 metres (previously disclosed in the Company's news release dated January 18, 2010). NR10-462 was successful in demonstrating the short range drill hole to drill hole continuity of this new high grade gold zone having intersected 22.15 g/t (0.64 oz/t) gold over 1.5 metres at 233 metres below surface and approximately 15 metres along strike to the east of NR09-446. This intersection has extended the known strike length of the high-grade zone at the -240 metre level to 30 meters and the high grade mineralization remains open along strike and plunge. Additional drilling has been completed at the Beaver Pond Area and assay results are pending.

Step-Out Exploration Drilling Yields High-Grade Gold 1,000 metres West of Beaver Pond Zone

The ongoing exploration drilling west of the known gold resources has been successful in discovering a new gold occurrence in hole NR10-456 grading 12.32 g/t gold over 2.0 metres at a vertical depth of 231 metres below surface. This new occurrence is hosted in the same intensely altered, sheared dacitic volcanic rocks that are characteristic of the Beaver Pond and ODM Zones. Hole NR10-455, which is located 100 metres east of NR10-456 intersected sporadic gold mineralization as outlined in Table 1. Follow-up drilling of this area will be a top priority for the 2010 exploration program.

New Gold Occurrence Discovered at Surface above CAP/South Zones Trend

A new occurrence of gold mineralization has been discovered 250 metres stratigraphically above the CAP/South trend with an intersection in hole NR10-444 grading 4.43 g/t gold over 3.0 metres. The gold intersection occurs at the bedrock-overburden contact only 25 metres below surface and as such, its full thickness may not have been completely tested. To date, this is one the southernmost gold intersections – this new information potentially increases the true north-south thickness of the known mineralized stratigraphic package to 1,000 metres and substantially expands the exploration potential for this underexplored portion of the project area.

Additionally, NR10-444 intersected 2.40 g/t gold over 9.0 metres in the South Zone at a vertical depth of 369 metres below surface and 0.81 g/t gold over 24.0 metres in the ODM "Deeps". Follow-up drilling of this new surface gold occurrence is currently being planned.

Titan Anomaly

Hole NR10-458 was drilled further south than the other holes and targeted a deep Titan geophysical anomaly suggestive of volcanogenic massive sulphide (VMS) mineralization in the upper dacites. No major sulphide concentrations were encountered but strong kyanite alteration (acid leaching), similar to that associated with the La Ronde VMS deposit in the Bousquet district, Quebec, was intersected in the overlying rhyolites. Also, at greater depth, the hole returned 15.0 metres grading 0.67 g/t gold from the Cap Zone.

Comments

"We are tremendously encouraged by the fact that with every drill hole that we put in the ground and the closer we space those holes, we are continuing to define more high-grade gold," commented Raymond Threlkeld, President and CEO. "In addition to the good high-grade continuity in the 433 Zone, the discoveries of new high grades 1000 metres to the west and a new zone on the south expands our mineralized stratigraphic column to over 1000 meters thick and over 1000 metres west beyond our current resources, illustrating the potential of Rainy River as a major gold district. We continue to achieve good results from the high grade Beaver Pond Zone and still have untested gold geochemical targets that can further the potential of the Rainy River project as a whole. We have drilled over 21,000 metres since mid January and will continue with a very aggressive pace to expand our resources and provide a preliminary economic assessment on open pit and underground mining options by the end of the third quarter."

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 CAN$65 MM million in its treasury, 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. 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.

To view the maps accompanying this press release please visit the following link: http://media3.marketwire.com/docs/RR0324.pdf

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 Significant Intercepts

HOLE-ID SECTION DEPTH BELOW SURFACE
(m)
FROM
(m)
TO
(m)
LENGTH
(m)
Au
(g/t)
  ZONE COMMENTS
NR09443 425551 113 136.5 137.5 1.0 32.60   433 WEST STRIKE EXTENSION NEW
NR09444 425097 29 28.5 31.5 3.0 4.43   HW CAP NEW
INCL 425113 369 385.5 394.5 9.0 2.40   SOUTH ADD
  425159 666 711.0 735.0 24.0 0.81   ODM DEEPS CONFIRM
NR09447 425574 72 86.0 90.5 4.5 0.83   HS NEW
  425574 85 101.0 105.5 4.5 0.79   HS NEW
  425574 122 149.0 150.5 1.5 5.77   433 WEST STRIKE EXTENSION NEW
  425574 138 165.4 171.5 6.1 0.70   433 WEST STRIKE EXTENSION NEW
  425574 223 272.0 276.5 4.5 1.75   433 FW WEST EXTENSION NEW
  425574 235 287.0 293.0 6.0 0.73   433 FW WEST EXTENSION NEW
NR09448 425001 83 95.0 96.5 1.5 2.24   HW BP NEW
  425010 176 192.5 227.0 34.5 0.55   BP ADD
NR09449 425846 68 81.5 84.5 3.0 3.57   HS CONFIRM
  425840 131 161.0 162.5 1.5 20.99   HW 433 NEW
  425838 158 195.5 197.0 1.5 8.08   433 ZONE ADD
  425837 173 209.0 230.0 21.0 8.26   433 CONFIRM
INCL 425837 169 209.0 212.0 3.0 33.00   433 CONFIRM
INCL 425837 170 210.5 212.0 1.5 62.26   433 CONFIRM
AND 425837 178 221.0 224.0 3.0 23.09   433 CONFIRM
INCL 425837 179 222.5 224.0 1.5 44.85   433 CONFIRM
NR09450 425502 177 215.0 216.5 1.5 2.08   433 WEST STRIKE EXTENSION NEW
NR10451 425876 95 111.5 122.0 10.5 1.05   HS CONFIRM
INCL 425876 93 113.0 114.5 1.5 5.26   HS CONFIRM
  425876 114 138.5 143.0 4.5 1.00   HW 433 CONFIRM
  425879 242 302.0 305.0 3.0 0.95   FW 433 CONFIRM
NR10455 424180 138 169.5 171.0 1.5 1.65   WESTERN AREA NEW
  424183 166 204.0 205.5 1.5 1.75   WESTERN AREA NEW
NR10456 424082 90 110.5 112.0 1.5 1.06   WESTERN AREA NEW
  424103 231 298.0 300.0 2.0 12.32   WESTERN AREA NEW
NR10457 424907 218 249.5 260.0 10.5 1.01   BP CONFIRM
NR10457 424935 390 468.5 470.0 1.5 1.63   HS NEW
NR10458 425298 449 633.0 648.0 15.0 0.67   CAP CONFIRM
NR10459 424929 181 212.0 218.0 6.0 0.70   BP CONFIRM
  424934 291 348.5 350.0 1.5 1.25   HS NEW
  424937 328 395.0 396.5 1.5 1.02   HS NEW
  424942 383 464.0 465.5 1.5 17.81   HS NEW
NR10460 425497 91 111.5 113.0 1.5 1.17   HS ADD
  425494 168 209.0 210.5 1.5 1.56   HS ADD
  425493 195 242.0 245.0 3.0 2.23   433 WEST STRIKE EXTENSION NEW
  425492 201 251.0 252.5 1.5 1.03     NEW
NR10462 424904 233 267.5 269.0 1.5 22.15   BP CONFIRM
  424905 253 284.0 300.5 16.5 1.39   BP CONFIRM
INCL 424905 259 297.5 300.5 3.0 4.44   BP CONFIRM
  424907 278 318.5 324.5 6.0 1.18   BP CONFIRM
  424913 340 396.5 398.0 1.5 2.18   HS NEW
  424917 374 438.5 440.0 1.5 1.11   HS NEW
  424919 392 460.0 461.0 1.0 5.89   HS ADD
NR10463 425702 195 221.0 222.5 1.5 1.21   433 CONFIRM
  425703 207 231.5 245.0 13.5 26.21   433 CONFIRM
INCL 425703 207 236.0 237.5 1.5 221.73   433 CONFIRM
AND 425703 214 243.5 245.0 1.5 6.31   433 CONFIRM
  425706 253 284.0 296.0 12.0 0.83   433 CONFIRM
                   
NR10466 424965 153 168.5 170.0 1.5 1.22   BP ADD
  424966 179 198.5 200.0 1.5 1.09   BP ADD
  424967 193 209.0 221.0 12.0 1.08   BP ADD
  424969 240 267.5 269.0 1.5 1.00   HS NEW
  424972 291 326.0 327.5 1.5 5.46   HS NEW
  424973 303 339.5 341.0 1.5 1.01   HS NEW
  424981 422 479.0 480.5 1.5 8.56   HS NEW
NR10467 424865 232 277.5 280.5 3.0 3.61   HW BP NEW
  424886 347 418.5 429.0 10.5 0.76   BP ADD
NR10468 425732 112 117.5 143.0 25.5 0.46   HS CONFIRM
  425732 189 210.3 242.0 31.7 0.58   433 CONFIRM
  425732 268 321.5 323.0 1.5 1.76   433 FW NEW
  425733 299 360.5 362.0 1.5 4.68   FW 433 NEW
NR10470 425700 157 179.0 180.5 1.5 3.29   HS CONFIRM
  425703 246 279.5 293.0 13.5 0.61   433 CONFIRM
  425704 275 321.5 324.5 3.0 4.62   433 ADD
NR10471 424948 192 224.0 225.5 1.5 6.44   HW BP NEW
                   

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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