Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

January 11, 2011 08:00 ET

Rainy River Announces High-Grade Infill Drilling Results

TORONTO, ONTARIO--(Marketwire - Jan. 11, 2011) - Rainy River Resources Ltd. ("Rainy River" or the "Company") (TSX VENTURE:RR) is pleased to announce drill results from the Rainy River Gold Project (the "RRGP") in Northwestern Ontario. These results are from the remaining drill holes of the 2010 infill drilling program and will be included in the updated NI 43-101 resource estimate expected to be completed by the middle of the first quarter. Results from all holes are summarized in Table 1: Summary of Results, at the end of this release.

Highlights

  • Remaining 2010 infill results continue to intersect high-grade gold
  • NR10-606 returns 30.0 g/t gold over 4.5 m in ODM Zone
  • NR10-608 returns 9.3 g/t gold over 13.5 m in ODM Zone
  • Cap Zone showing promising exploration upside with wider zones of significant gold mineralization in NR10-610 – 1.2 g/t gold over 39.0 m
  • NR10-610 returns 6.8 g/t gold over 4.5 m in ODM Zone and demonstrates the potential for additional high-grade discoveries at depth
  • High-grade zinc and silver assays encountered in ODM Zone

To view the maps associated with this press release, please click on the following link: http://media3.marketwire.com/docs/rr110.pdf

ODM Zone Drilling

Results from the ODM Zone continue to intersect high-grade gold mineralization at depths to 650 metres below surface, showing improved deposit continuity and the opening up of new areas for potential resource expansion.

Diamond drill hole NR10-609 intercepted 6.4 g/t gold over 31.5 m including 9.3 g/t gold over 19.5 m at a vertical depth of 477 metres. This intersection lies approximately 30 metres down-dip from drill hole NR10-602 and demonstrates excellent short-range continuity. NR10-602 returned 6.4 g/t gold over 13.9 m, including 30.0 g/t gold over 1.5 m at a depth of 459 m. Approximately 150 metres down-plunge of NR10-602, drill hole NR10-605 reported additional high-grade intersections of 5.3 g/t gold over 7.5 m, including 10.4 g/t gold over 1.5 m and 12.9 g/t gold over 1.5 m

At a vertical depth of 650 metres, drill hole NR10-610 intersected 6.8 g/t gold over 4.5 m including 16.5 g/t gold over 1.5 m. This intercept is one of the deepest ever recorded in the ODM zone and its location is significant in that it demonstrates the potential for additional discoveries and resource expansion at depth. NR10-610 is located 171 metres due east of NR07-214 (see press release dated May 27, 2008) which returned 7.43 g/t gold over 4.5 m at the same vertical depth. The intersection surrounding drill hole NR10-610 is also open for several hundred meters along its plunge length, and will be a key focus for expanding resources in the 2011 exploration program. 

Other significant infill results include NR10-611 with 9.3 g/t gold over 13.5 m, including 60.4 g/t gold over 1.5 m and 9.7 g/t gold over 1.5 m at a vertical depth of 476 metres. Drill hole NR10-606 returned encouraging gold values with 30.0 g/t gold over 4.5 m, including 54.8 g/t gold over 1.5 m and 34.8 g/t gold over 1.5m, at approximately 355 metres below surface.

Closer to surface, drill hole NR10-608 intersected several high-grade gold intersections including 4.6 g/t over 10.5 m, which includes 6.0 g/t gold over 7.5 m, and a deeper intercept grading 9.3 g/t gold over 13.5 m, including a high grade intercept of 70.2 g/t gold over 1.5 m at 232 metres below surface. 

Cap Zone Drilling

Infill drilling also intersected significant gold mineralization in the Cap Zone, an area approximately 300 metres to the south of the ODM Zone. The Cap Zone has seen little focused exploration and is an exciting target for its potential to add additional resources at the RRGP. Highlights from the Cap Zone include drill hole NR10-602 with 1.5 g/t gold over 10.5 m at 128 m below surface, drill hole NR10-605 with 1.1 g/t gold over 22.5 m at 250 m vertical depth and drill hole NR10-610 which intersected 1.2 g/t gold over 39.0 m at a depth of 294 m below surface. 

ODM Zone Zinc and Silver Results

Assay data for all other elements, including zinc and silver, have been received for drill hole NR10-587, which was one of three holes successfully drilled down the plunge of the ODM Zone to test continuity and grade within the zone (see press release dated November 30, 2010). Final assay data indicates that in addition to the gold, which returned 227.4 g/t over 0.5 m as previously announced, high-grade silver is also present, with 190.0 g/t silver assayed over the same interval of 165.0 to 165.5 m. Further down the hole, from 327.5 to 336.5 m, a 9.0 m wide interval grading 7.4 g/t gold, 3.6% zinc and 14.3 g/t silver was returned. This includes a higher-grade interval of 20.1 g/t gold (previously announced) plus 13.5% zinc and 52.0 g/t silver over 1.5 m. These are the highest-grade zinc results returned to date within the ODM Zone. The strong geochemical correlation in the ODM Zone with sericte, pyrite, gold +/- zinc and the zonation into the Cap Zone to sericite, +/- black chlorite, gold, pyrite +/- copper mineralization continue to demonstrate that the Rainy River Deposit hosts strong similarities to a precious-metal-rich volcanogenic mineralizing system.

Commentary

"Results from the infill program are very encouraging and, while adding a great deal of new information for the next NI 43-101 resource update, the infill program has also demonstrated the enormous potential for further discoveries of volcanogenic gold and VMS deposits," commented Raymond Threlkeld, President and CEO. "Based on the success of the 2010 exploration program, the Company has approved a $57 million budget for 2011 that includes over 100,000 metres of infill and regional diamond drilling, initiating an underground exploration program and moving all relevant engineering and environmental studies to the feasibility level. We will also be conducting an aggressive exploration program at the TPK joint venture project, with 11,000 m of drilling planned to follow up on the recent high-grade gold discovery."

Corporate Update

Rainy River also announces the appointment of Gerald J. ("Gerry") Shields to the position of Vice President and General Counsel for Rainy River. Mr. Shields was formerly Vice President, Administration for the Company and also serves as a director of Rainy River.

In addition, the Company announces that as part of its long term incentive program for employees, management and directors, the Company has granted options to acquire 1,660,000 common shares of the Company at the exercise price of $12.65 per share for a period of 5 years. The options will vest over a period of two years.

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., is the person 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. The procedures of the QA/QC program are detailed on Rainy River's website at www.rainyriverresources.com.

About Rainy River

Rainy River is a Canadian precious metals exploration company whose key asset is the Rainy River Gold Project. With approximately $138 million in its treasury, the Company is well positioned to focus on expanding and optimizing the known resources at the Rainy River gold project through its advanced (underground) exploration program as well as drilling exploration targets outside of the known resource area. The Rainy River Gold Project property is extremely well located in the southwestern corner of Northern Ontario near the U.S. border, is accessible year round 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 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. 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 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 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.

Table 1: Summary of Results

HOLE-ID   NORTHING   VERTICAL DEPTH (M)   FROM (M)   TO (M)   CORE LENGTH (M)   AU (G/T)   ZONE
NR10-599   5409562   280   301.5   351.3   49.8   0.75   ODM
NR10-601   5409415   28   29.0   30.5   1.5   3.38   CAP
    5409558   331   336.5   393.5   57.0   1.47   ODM
INCL   5409545   308   338.0   339.5   1.5   22.02   ODM
AND   5409571   355   392.0   393.5   1.5   10.46   ODM
NR10-602   5409325   128   129.0   139.5   10.5   1.53   CAP
    5409459   453   479.6   493.5   13.9   6.38   ODM
INCL   5409457   449   481.5   483.0   1.5   13.30   ODM
AND   5409459   453   486.0   487.5   1.5   5.45   ODM
AND   5409461   459   492.0   493.5   1.5   29.98   ODM
    5409482   499   535.5   541.5   6.0   2.84   ODM
INCL   5409481   497   535.5   537.0   1.5   4.29   ODM
AND   5409483   501   540.0   541.5   1.5   4.64   ODM
NR10-603   5409349   63   66.5   68.0   1.5   2.70   CAP
    5409407   187   204.5   205.3   0.8   3.40   HW ODM
    5409455   280   305.0   314.0   9.0   1.93   ODM
    5409485   333   359.0   383.0   24.0   1.07   ODM
    5409506   368   411.5   413.0   1.5   3.33   ODM
    5409511   377   422.0   423.5   1.5   2.47   ODM
NR10-604   5409309   65   59.0   78.5   19.5   0.76   CAP
    5409320   90   86.0   107.0   21.0   0.68   CAP
    5409338   133   138.5   147.5   9.0   1.63   CAP
    5409523   458   516.5   518.0   1.5   3.02   ODM
NR10-605   5409261   250   265.5   288.0   22.5   1.10   CAP
    5409274   270   300.5   301.5   1.0   3.29   CAP
    5409372   414   474.0   475.5   1.5   2.28   HW ODM
    5409426   489   567.0   568.5   1.5   2.22   HW ODM
    5409459   532   618.0   625.5   7.5   5.33   ODM
INCL   5409458   531   619.5   621.0   1.5   10.44   ODM
AND   5409459   532   621.0   622.5   1.5   12.89   ODM
NR10-606   5409446   47   53.9   55.1   1.2   8.03   CAP
    5409539   285   309.5   311.0   1.5   3.37   ODM
    5409551   312   339.5   341.0   1.5   4.10   ODM
    5409572   357   387.5   392.0   4.5   29.97   ODM
INCL   5409571   356   387.5   389.0   1.5   54.78   ODM
AND   5409573   359   390.5   392.0   1.5   34.81   ODM
NR10-607   5409543   185   201.5   206.0   4.5   7.92   ODM
INCL   5409543   184   201.5   203.0   1.5   22.57   ODM
    5409559   222   237.5   249.5   12.0   1.43   ODM
INCL   5409559   221   242.0   243.5   1.5   6.08   ODM
    5409688   469   522.5   524.0   1.5   2.37   HS
NR10-608   5409564   184   207.5   218.0   10.5   4.6   ODM
INCL   5409564   184   209.0   216.5   7.5   6.00   ODM
INCL   5409563   182   209.0   210.5   1.5   5.31   ODM
AND   5409563   183   210.5   212.0   1.5   7.41   ODM
AND   5409566   187   215.0   216.5   1.5   16.53   ODM
    5409592   227   257.0   270.5   13.5   9.33   ODM
INCL   5409588   222   257.0   258.5   1.5   9.81   ODM
AND   5409595   232   269.0   270.5   1.5   70.23   ODM
    5409626   276   323.0   326.0   3.0   6.66   ODM
INCL   5409626   276   323.0   324.5   1.5   11.05   ODM
    5409707   380   456.5   458.0   1.5   2.53   HS
    5409739   418   506.0   507.5   1.5   5.36   HS
NR10-609   5409290   143   140.0   164.0   24.0   0.78   CAP
INCL   5409295   153   162.5   164.0   1.5   4.07   CAP
    5409317   203   216.5   219.5   3.0   5.75   CAP
INCL   5409317   203   216.5   218.0   1.5   8.64   CAP
    5409401   377   410.9   412.9   2.0   5.58   HW ODM
    5409432   438   479.2   481.2   2.0   4.56   HW ODM
    5409451   474   506.0   537.5   31.5   6.38   ODM
INCL   5409453   477   515.0   534.5   19.5   9.25   ODM
INCL   5409449   469   515.0   516.5   1.5   7.18   ODM
AND   5409450   472   518.0   519.5   1.5   31.20   ODM
AND   5409451   473   519.5   521.0   1.5   31.64   ODM
AND   5409455   481   528.5   530.0   1.5   18.90   ODM
AND   5409457   485   533.0   534.5   1.5   13.46   ODM
    5409475   517   570.5   572.0   1.5   11.79   ODM
NR10-610   5409192   294   294.0   333.0   39.0   1.22   CAP
INCL   5409192   294   307.5   318.0   10.5   2.96   CAP
    5409349   598   655.5   657.0   1.5   3.83   ODM
    5409360   617   678.0   679.5   1.5   2.64   ODM
    5409370   634   697.5   699.0   1.5   2.35   ODM
    5409380   650   715.5   720.0   4.5   6.84   ODM
INCL   5409381   652   718.5   720.0   1.5   16.46   ODM
NR10-611   5409275   181   198.0   208.5   10.5   1.38   CAP
    5409291   206   231.0   235.5   4.5   1.48   CAP
    5409301   221   250.5   252.0   1.5   2.77   CAP
    5409459   435   516.0   520.5   4.5   3.21   ODM
    5409489   472   559.5   573.0   13.5   9.29   ODM
INCL   5409486   468   561.0   562.5   1.5   9.72   ODM
AND   5409491   474   568.5   570.0   1.5   4.58   ODM
AND   5409493   476   571.5   573.0   1.5   60.37   ODM
    5409514   501   604.5   606.0   1.5   3.61   ODM
NR10-613   5409241   246   243.0   274.5   31.5   1.14   CAP
    5409359   561   576.0   615.0   39.0   1.47   ODM
INCL   5409362   570   604.5   606.0   1.5   7.24   ODM

 

HOLE-ID   NORTHING   VERTICAL DEPTH(M)   FROM (M)   TO (M)   CORE LENGTH (M)   AU (G/T)   AG (G/T)   ZN (%)   ZONE
NR10-587   5409562   258   327.5   336.5   9.0   7.37   14.30   3.6   ODM

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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