Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

December 16, 2009 08:30 ET

Rainy River Intersects More High-Grade Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2009) - Rainy River Resources Ltd. (TSX VENTURE:RR) -

Highlights

  • NR09-406 Intersects High Grade Gold at Bottom of Conceptual Open Pit
  • 433 Zone Extended 260 Metres Down Plunge – More High Grade Gold
  • High Grade Gold Discovered 150 Metres East of 433 Zone
  • More Gold Mineralization Discovered – Strike Length of ODM Trend Extended to 1.7 Kilometres
  • Infill Drilling Continues to Validate Block Model

Rainy River Resources Ltd. (RR.TSX-V) (the "Company" or "Rainy") announces continued success in the 11 latest holes drilled at its Rainy River project located in the southwest corner of northern Ontario. Significant results from the ODM17 Zone include 48 metres grading 4.29 g/t gold in Hole NR09-406 (including 10.5 m of 16.73 g/t). This hole also indicated a continuation down plunge of the 433 Zone, intersecting 25.5 metres of 6.04 g/t gold 260 metres below an intersection of 18.0 metres of 7.61 g/t gold (including 10.5 metres of 12.59 g/t) in Hole NR08-250 reported May 27th 2008. In addition, the Company has made a potential new discovery 100 metres stratigraphically above the 433 Zone where hole NR09-408 intersected 1.5 metres of 122.3 g/t gold.

All significant drill results from the 11 new holes and a location map with section lines for reference are posted on the Rainy River website www.rainyriverresources.com. Table 1, Summary of Results, is to be read in conjunction with the text, below.

NR09-406 Intersects High-Grade Gold at Bottom of Conceptual Open Pit

NR09-406 was designed as an infill hole to convert inferred gold resources to the indicated category at the -330 metre level in the lower part of the conceptual open pit. It intersected 48.0 metres of 4.29 g/t gold in the ODM17 Zone including a higher grade interval of 10.5 metres grading 16.73 g/t gold, suggesting the option for development by underground rather than open pit methods. A second high-grade gold intersection of 1.5 metres grading 15.20 g/t was obtained at the -370 metre level.

433 Zone Extended 260 metres Down Plunge – More High-Grade Gold

Hole NR09-406 also intersected high-grade mineralization at the -700 m level in the 433 Zone, returning 6.04 g/t gold over 25.5 metres (including 89.86 g/t gold over 1.5 metres) which appears to be a down plunge continuation of the 433 Zone. This intersection is of major significance in that it has confirmed the existence of the 433 Zone 260 metres down plunge of historic drill hole NR08-250 which yielded 18.0 metres grading 7.61 g/t gold (including 10.5 metres grading 12.59 g/t) and until now was the deepest intersection in the 433 Zone (refer to Company press release dated May 27th 2009). The 433 Zone remains open above and below NR09-406 and represents an area of high exploration potential for underground resource expansion. Infill drilling between NR09-406 and NR08-250 is currently being planned for 2010.

High-Grade Gold Discovered 150 metres East of 433 Zone

Drilling 150 metres east of the 433 Zone has intersected what the Company believes may be a new gold-bearing horizon in the hanging wall rocks 100 metres stratigraphically above the 433 Zone horizon, a position similar to that of the high-grade HS Zone further to the west. Hole NR09-408 intersected 1.5 metres grading 122.33 g/t gold at the -600 metre level. This new occurrence is open in all directions and more drilling is planned to follow up the intersection in 2010.

More Gold Mineralization Discovered – Strike Length of ODM Trend Extended to 1.7 Kilometres

Continued exploration drilling west of the Beaver Pond (Holes NR09-410 and NR09-411) has successfully extended the Beaver Pond Zone 200 metres west of the known mineralization. NR09-410 intersected 3.62 g/t gold over 6.0 metres and NR09-411 intersected 2.31 g/t gold over 3.0 metres. These intersections are significant in that they have extended the strike length of the same highly altered volcanic rocks that host the mineralization in the ODM17 and Beaver Pond Zones and may represent the emergence of a previously unknown gold zone in an untested area. Additional holes have been drilled in this area and assays are pending.

Infill Drilling Continues to Validate Block Model

Infill drilling on the ODM17 Zone continues to verify the existing inferred mineralization from the 2009 NI 43-101 resource estimate in the ongoing effort to convert these portions of the existing resource to the indicated category. In addition to Holes NR09-406 and 408, seven drill holes (NR09-404, 405, 407, 415, 417, 420 and 428) were designed for this purpose. Most notably, Hole NR09-404 intersected 30.5 metres of 1.08 g/t gold and Hole NR09-405 intersected 112.5 metres of 0.79 g/t gold, including 40.5 metres at 1.35 g/t gold. Detailed assay and depth information for each of these holes is presented in Table 1.

Commentary

"We are extremely encouraged by our continued success in validating and extending existing mineralization in addition to discovering new high grade zones at the Rainy River project," commented Raymond Threlkeld, President and CEO. "These holes, in addition to the holes drilled up to December 20, 2009, will be included in the Company's updated 43-101 report which will be completed by the end of the first quarter of 2010."

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 as defined by 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. 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 CAN$22 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.

RAINY RIVER RESOURCES LTD.

Raymond W. Threlkeld, President & CEO

Table 1 – Summary of Significant Gold Intercepts



Hole No.

From
(m)

To
(m)
Core Length(i)
(m)
 Au (g/t)
(ii)
Zone
(where
known)
Vertical Depth
 (m)
Effect
NR09404 90.5 95.0 4.5 1.43      
  161.0 191.5 30.5 1.08 ODM17 150 Confirm
  258.5 260.0 1.5 1.01      
  300.5 301.5 1.0 3.87      
  503.0 504.5 1.5 1.47      
NR09405 53.0 59.0 6.0 1.00      
  125.0 237.5 112.5 0.79 ODM17 150 Confirm
Including 155.0 195.5 40.5 1.36      
NR09406 71.5 73.0 1.5 0.78      
  134.5 136.0 1.5 1.22      
  211.4 212.4 1.0 1.33      
  337.0 385.0 48.0 4.29 ODM17 330 Confirm
Including 362.5 373.0 10.5 16.73      
Including 362.5 364.0 1.5 101.59      
And 370.0 371.5 1.5 8.06      
  409.0 410.5 1.5 15.20 ODM17 370  
  658.0 669.5 11.5 0.75      
  701.5 727.0 25.5 6.04 433 700 New discovery
Including 701.5 703.0 1.5 10.64      
And 725.5 727.0 1.5 89.86      
NR09407 239.0 240.2 1.2 1.13      
  593.0 600.5 7.5 1.10 ODM17 550 Confirm
  677.0 678.5 1.5 3.79      
NR09408 37.0 38.5 1.5 1.43      
  356.5 358.0 1.5 1.85      
  388.0 389.5 1.5 1.79      
  433.0 437.0 4.0 1.03 ODM17 390 Confirm
  451.0 452.0 1.0 2.84      
  463.0 464.5 1.5 1.02      
  488.0 489.0 1.0 1.09      
  617.5 622.0 4.5 1.01      
  662.5 664.0 1.5 1.42      
  685.0 686.5 1.5 122.33 433 600 New discovery
NR09410 190.5 193.5 1.5 1.87      
  256.5 262.5 6.0 3.62 Beaver Pond 200 New discovery
NR09411 346.5 349.5 3.0 2.31 Beaver Pond 300 New discovery
NR09415 69.5 93.5 24.0 0.48 ODM17 85 Confirm
  171.5 173.0 1.5 2.23      
NR09417 518.0 519.5 1.5 1.47      
  582.5 597.5 15.0 1.11 ODM17 500 Confirm
  681.5 683.0 1.5 1.79      
NR09420 71.0 89.0 18.0 0.69 ODM17 70 Confirm
NR09428 171.5 173.0 1.5 1.82      
  218.0 220.0 2.0 2.18      
  249.5 260.0 10.5 0.83 HS 230 Confirm
  417.5 419.0 1.5 1.73      
               
(i) approximately equal to true thickness (ii) uncut      

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.

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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