Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

September 08, 2009 08:15 ET

Rainy River Announces Results of Infill and Exploration Drilling and Provides Update on 2009 Plans

Highlights: - Thick, high-grade extension of ODM17 Zone intersected at depth - Infill drilling encounters new zones within 43-101 conceptual pit; 433 Zone drilling confirms continuity - Potential discovery southwest of CAP Zone adjacent to 43-101 compliant pit - 4th drill rig added to step up infill and exploration drilling - Project moving towards scoping and feasibility study

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2009) - Rainy River Resources Ltd. (TSX VENTURE:RR) is pleased to announce the results of 32 diamond drill holes that were drilled after the assay cut-off date for the recently completed NI43-101 resource estimate (SRK, July 2009; 2.2 million ounces gold indicated and 1.8 million ounces gold inferred; available at www.sedar.com).

All significant drill results and a location map with section lines for reference are posted on the Rainy River website www.RainyRiverResources.com. All holes collared in 2009 and completed by July 6 have now been released. Summary tables on pages 4 through 7 of this release are to be read in conjunction with the text, below.

Deep Exploration Drill Holes

Two deep holes, Nos 360 and 369, were collared south of the proposed pit to test for both a near-surface source for a gold-grains-in-till anomaly and deep down-dip extensions of the known zones. These holes, sited southwest of the Cap Zone, resulted in the discovery of a new surface zone and a thick, high-grade, deep extension of the ODM17 zone.

The zone of 13.5 meters of 1.75 g/t gold encountered in Hole 369 correlates very well with the 24.0 m section grading 1.08 g/t in Hole 360. This could represent a new volcanogenic gold horizon lying south of the Cap Zone. The new zone is coincident with the edge of a large high-low magnetic contrast that extends 2 km to the west and with a gold-in-till and associated gold-in-bedrock anomaly defined by reverse circulation drilling. This opens up another large exploration target within the Rainy River caldera complex.

The deep, 36 m intercept grading 3.93 g/t gold in Hole 360 extends the ODM17 zone more than 100 m down-dip. The gold assays within this section are remarkably uniform, illustrating the potential for adding significantly to the underground resource base.

Infill Drilling

The drilling was focused mainly on infilling and adding resources within the current conceptual pit as proposed by SRK. Drill holes 347, 354 and 365 (Section 425,825E), DH 355 (Section 425,700E), DH 359 (Section 425,625), DH 353 (Section 425,400E) and DH 351 (Section 425,275E) confirmed the grades and widths as projected by the block model for the current resources. Details of the individual assay zones are included in the "Infill Drilling" table at the end of the release, by Section numbers from east to west.

New Infill Information

Some infill holes drilled within the SRK conceptual pit cut mineralization that was not included in the block model. These zones have the potential to add gold ounces and reduce waste within the pit shell. Of particular significance is Hole 349 which extended the ODM 17 Zone 60 m to the west and Hole 358 which contained 32.1 meters at 1.18 g/t gold within the south wall of the conceptual pit. Another zone, below the pit, of 57.0 meters of 0.99 g/t gold was encountered, further demonstrating the continuity of the volcanogenic style of mineralization within the Rainy River caldera complex.

Down-Plunge Drilling, 433 Zone

Four holes were drilled down-plunge on the 433 Zone to determine the continuity of mineralization and define the frequency and attitude of higher-grade vein sets encountered in drilling across the zone from south to north. The continuity was confirmed but drilling did not encounter a higher frequency of high grade vein zones as expected, suggesting that the high-grade veins in the 433 Zone may be parallel to the main volcanogenic mineralization. This is potentially significant as the veins may have greater strike and dip extent than previously thought.

Other Exploration Drilling

Exploration holes drilled in the BP Zone and Johnson Block areas and to follow up gold-in-till and associated gold-in-bedrock anomalies (RC targets 3 and 4) all hit highly anomalous gold zones but these intercepts were either deep (outside pit shell and resource) or inconclusive. Results are tabulated below.

Newly appointed President and CEO, Raymond Threlkeld, commented: "I am very pleased with the results recently obtained after the 43-101 resources were updated. Infill drilling has confirmed the block model and new zones have been intercepted that will add to the resources. I am particularly encouraged by the discovery of a new, near-surface zone and the high grades in Hole 360. Both zones add to the open pit and underground potential we see in the Rainy River project."

In response to the Company's favorable results, Rainy River has added a fourth drill rig to step up the resources definition and new discovery potential in the Rainy River caldera complex. The Company is well positioned financially with $20 million in the treasury at the end of the third quarter to move the project into mine development and discover the true potential of the Rainy River caldera complex.

2009 Planning Update

- Fourth drill rig added: two drill rigs to focus on infill and reserve expansion and two drill rigs to focus on new discovery.

- Baseline environmental studies underway under contract to Klohn Crippen Berger Limited.

- Geotechnical studies underway include slope stability analysis, geohydrology and water quality sampling.

- Metallurgical testing program to begin late September to enhance initial test results.

- Pit optimization studies to begin in September.

- In-house scoping study to be completed in Q1, 2010.

Mr. Threlkeld commented that, "we are moving aggressively to develop the Rainy River Project and will provide timely updates to our progress."

Qualified persons

Rainy River's exploration program in Richardson Township is being supervised by Stuart Averill, P.Geo. Vice-President Exploration and is being managed by Wally Rayner, P.Geo., Project Manager, both Qualified Persons within the meaning of National Instrument 43-101. The Company's regional exploration manager, C.J. Baker, M.Sc., is managing the Company's Off Lake exploration program 15 km to the northeast. Nelson W. Baker, P.Eng. is the Qualified Person for the project, Raymond Threlkeld and Stuart Averill are the persons responsible for the contents 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 Resources Ltd.

Rainy River Resources is a Canadian precious metals exploration company whose key asset is the Rainy River gold project. With a CAN$20 million 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.

RAINY RIVER RESOURCES LTD.

Stuart A. Averill, Vice-President, Exploration

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.



DRILL HOLE SUMMARY TABLES

Deep Exploration Drill Holes

---------------------------------------------------------------------------
Metres
-------------- Core Zone
Section Hole No. From To Length(i) Au (g/t)(ii) (where known)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
425275E NR09-360 77.2 79.9 2.7 2.02
---------------------------------------------------------------------------
210.5 213.5 3.0 1.12 South
---------------------------------------------------------------------------
233.0 234.5 1.5 1.27 South
---------------------------------------------------------------------------
253.0 255.5 2.5 1.67 South
---------------------------------------------------------------------------
269.0 271.8 2.8 1.65 South
---------------------------------------------------------------------------
281.0 305.0 24.0 1.08 South
---------------------------------------------------------------------------
498.5 499.3 0.8 8.53
---------------------------------------------------------------------------
585.9 638.0 52.1 2.99 ODM17
---------------------------------------------------------------------------
Including 591.5 627.5 36.0 3.93
---------------------------------------------------------------------------
Including 623.0 627.5 4.5 10.66
---------------------------------------------------------------------------
---------------------------------------------------------------------------
425225E NR09-369 221.0 234.5 13.5 1.75 South
---------------------------------------------------------------------------
240.5 242.0 1.5 1.00
---------------------------------------------------------------------------
251.0 252.5 1.5 1.29
---------------------------------------------------------------------------
300.5 302.0 1.5 1.14
---------------------------------------------------------------------------
303.5 305.0 1.5 1.11
---------------------------------------------------------------------------
311.0 312.5 1.5 1.92
---------------------------------------------------------------------------
468.5 470.0 1.5 1.21
---------------------------------------------------------------------------
623.0 627.5 4.5 2.23 ODM17
---------------------------------------------------------------------------
632.0 633.5 1.5 3.85 ODM17
---------------------------------------------------------------------------
642.5 644.0 1.5 3.09 ODM17
---------------------------------------------------------------------------
659.0 662.0 3.0 1.60 ODM17
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(i) Approximately equal to true thickness
---------------------------------------------------------------------------
(ii) Uncut
---------------------------------------------------------------------------


Infill Drilling

------------------------------------------------------------------------
Metres
-------------- Core Au Zone
Section Hole No. From To Length(i) (g/t)(ii) (where known)
------------------------------------------------------------------------
------------------------------------------------------------------------
425825E NR09-347 167.0 168.5 1.5 1.43
------------------------------------------------------------------------
189.5 230.0 40.5 0.61 ODM17
------------------------------------------------------------------------
234.5 254.0 19.5 1.24 ODM17
------------------------------------------------------------------------
Including 249.5 254.0 5.0 3.39
------------------------------------------------------------------------
------------------------------------------------------------------------
425825E NR09-354 263.0 264.5 1.5 1.57
------------------------------------------------------------------------
272.0 273.5 1.5 1.68
------------------------------------------------------------------------
303.5 309.5 6.0 1.00
------------------------------------------------------------------------
317.0 326.0 9.0 0.48
------------------------------------------------------------------------
389.0 398.0 9.0 0.68
------------------------------------------------------------------------
------------------------------------------------------------------------
425825E NR09-365 396.5 446.0 49.5 0.93 ODM17
------------------------------------------------------------------------
Including 431.0 435.5 4.5 6.22
------------------------------------------------------------------------
479.0 510.5 31.5 1.34 ODM17
------------------------------------------------------------------------
Including 480.5 486.5 6.0 2.51
------------------------------------------------------------------------
and 503.0 507.5 4.5 3.94
------------------------------------------------------------------------
------------------------------------------------------------------------
425700E NR09-355 134.0 321.5 187.5 0.80 ODM17
diagonal
------------------------------------------------------------------------
------------------------------------------------------------------------
425600E NR09-359 60.5 74.0 13.5 0.65 South
------------------------------------------------------------------------
107.0 114.5 7.5 0.81 Cap
------------------------------------------------------------------------
479.0 480.5 1.5 3.65 ODM17
------------------------------------------------------------------------
528.5 542.0 13.5 0.62 ODM17
------------------------------------------------------------------------
647.0 648.5 1.5 1.85 ODM17
------------------------------------------------------------------------
662.0 687.5 25.5 0.83 ODM17
------------------------------------------------------------------------
Including 683.0 687.5 4.5 3.20
------------------------------------------------------------------------
------------------------------------------------------------------------
425400E NR09-353 84.5 89.0 4.5 1.48 ODM17
------------------------------------------------------------------------
111.5 150.4 38.9 0.91 ODM17
------------------------------------------------------------------------
Including 111.5 131.0 19.5 1.21
------------------------------------------------------------------------
483.5 488.0 4.5 1.11 HS
------------------------------------------------------------------------
------------------------------------------------------------------------
425275E NR09-351 137.0 141.5 4.5 1.33 ODM/17
------------------------------------------------------------------------
150.5 152.0 1.5 2.09 ODM/17
------------------------------------------------------------------------
------------------------------------------------------------------------
(i) Approximately equal to true thickness except in Hole 355
------------------------------------------------------------------------
(ii) Uncut
------------------------------------------------------------------------


New Infill Information

------------------------------------------------------------------------
Metres
------------- Core Au Zone
Section Hole No. From To Length(i) (g/t)(ii) (where known)
------------------------------------------------------------------------
------------------------------------------------------------------------
425700E NR09-358 47.0 51.5 4.5 0.88 South
------------------------------------------------------------------------
288.5 291.5 3.0 1.17 Cap
------------------------------------------------------------------------
397.3 431.0 32.2 1.18 ODM17
------------------------------------------------------------------------
449.0 450.5 1.5 33.40 ODM17
------------------------------------------------------------------------
474.5 531.5 57.0 0.99 ODM17
------------------------------------------------------------------------
Including 507.5 516.5 9.0 1.78
------------------------------------------------------------------------
527.0 531.5 4.5 3.55
------------------------------------------------------------------------
------------------------------------------------------------------------
425650E NR09-340 165.5 168.5 3.0 4.93 433
------------------------------------------------------------------------
------------------------------------------------------------------------
425550E NR09-371 135.5 143.0 7.5 2.76 South
------------------------------------------------------------------------
151.0 155.0 4.0 1.54 Cap
------------------------------------------------------------------------
484.0 501.5 17.5 2.13 ODM17
------------------------------------------------------------------------
534.5 549.5 15.0 1.77 ODM17
------------------------------------------------------------------------
728.0 732.5 4.5 4.60 HS
------------------------------------------------------------------------
425325E NR09-352 105.5 158.0 52.5 1.21 ODM17
------------------------------------------------------------------------
Including 153.5 155.0 1.5 19.31
------------------------------------------------------------------------
------------------------------------------------------------------------
425200E NR09-349 164.0 168.5 4.5 3.01 ODM17
------------------------------------------------------------------------
440.0 441.5 1.5 2.21
------------------------------------------------------------------------
564.4 566.0 1.6 70.87
------------------------------------------------------------------------
------------------------------------------------------------------------
425150E NR09-372 No significant intercepts
------------------------------------------------------------------------
------------------------------------------------------------------------
425150E NR09-374 No significant intercepts
------------------------------------------------------------------------
------------------------------------------------------------------------
(i) Approximately equal to true thickness
------------------------------------------------------------------------
(ii) Uncut
------------------------------------------------------------------------


Down-Plunge Drilling, 433 Zone

--------------------------------------------------------------------------
Metres
------------ Core Au Zone
Section Hole No. From To Length(i) (g/t)(ii) (where known)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
425900E NR09-368 52.0 255.5 203.5 0.92 433
--------------------------------------------------------------------------
--------------------------------------------------------------------------
425850E NR09-370 52.0 333.5 281.5 0.72 433
--------------------------------------------------------------------------
--------------------------------------------------------------------------
425825E NR09-361 49.0 179.0 130.0 0.93 433
--------------------------------------------------------------------------
--------------------------------------------------------------------------
425825E NR09-367 89.0 221.1 132.1 1.24 433
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(i) Much greater than true thickness
--------------------------------------------------------------------------
(ii) Uncut
--------------------------------------------------------------------------


Other Exploration Drilling

------------------------------------------------------------------------
Metres
------------- Core Au Zone
Section Hole No. From To Length(i) (g/t)(ii) (where known)
------------------------------------------------------------------------
------------------------------------------------------------------------
1) RC Targets 3 and 4
------------------------------------------------------------------------
------------------------------------------------------------------------
425300E NR09-325 126.5 132.5 6.0 1.26
------------------------------------------------------------------------
------------------------------------------------------------------------
425150E NR09-327 258.0 259.5 1.5 1.19
------------------------------------------------------------------------
454.5 456.0 1.5 1.16
------------------------------------------------------------------------
------------------------------------------------------------------------
425200E NR09-328 479.0 485.3 6.3 1.29
------------------------------------------------------------------------
------------------------------------------------------------------------
2) Gold-Rich VMS Lens of Hole 322, RC Targets 3 and 4
------------------------------------------------------------------------
------------------------------------------------------------------------
425500E NR09-337 323.0 324.5 1.5 1.29
------------------------------------------------------------------------
------------------------------------------------------------------------
425500E NR09-338 No significant intercepts
------------------------------------------------------------------------
------------------------------------------------------------------------
3) Beaver Pond Area
------------------------------------------------------------------------
------------------------------------------------------------------------
424900E NR09-339 371.0 375.5 4.5 1.77
------------------------------------------------------------------------
381.5 383.0 1.5 1.88
------------------------------------------------------------------------
------------------------------------------------------------------------
424975E NR09-343 338.0 339.5 1.5 1.02
------------------------------------------------------------------------
344.0 345.5 1.5 1.22
------------------------------------------------------------------------
368.0 371.0 3.0 2.68
------------------------------------------------------------------------
------------------------------------------------------------------------
424900E NR09-350 387.5 389.0 1.5 1.32
------------------------------------------------------------------------
419.0 422.0 3.0 1.24
------------------------------------------------------------------------
425.0 426.6 1.6 1.18
------------------------------------------------------------------------
569.0 575.0 6.0 1.54 BP
------------------------------------------------------------------------
Zones correlate outside down pit.
------------------------------------------------------------------------
------------------------------------------------------------------------
4) Johnson Block
------------------------------------------------------------------------
------------------------------------------------------------------------
426600E NR09-362 230.0 231.5 1.5 1.40
------------------------------------------------------------------------
------------------------------------------------------------------------
426575E NR09-363 191.0 192.5 1.5 1.25
------------------------------------------------------------------------
281.0 282.5 1.5 1.13
------------------------------------------------------------------------
------------------------------------------------------------------------
426625E NR09-364 165.5 167.0 1.5 7.73
------------------------------------------------------------------------
------------------------------------------------------------------------
426600E NR09-366 168.5 170.0 1.5 1.60
------------------------------------------------------------------------
194.0 195.5 1.5 2.13
------------------------------------------------------------------------
------------------------------------------------------------------------
(i) Approximately equal to true thickness
------------------------------------------------------------------------
(ii) Uncut
------------------------------------------------------------------------

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