Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

November 30, 2010 08:00 ET

Rainy River Announces Successful Down-Dip Drilling Study

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2010) - Rainy River Resources Ltd. (TSX VENTURE:RR) ("Rainy River" or the "Company") is pleased to announce drill results from the Rainy River Gold Project in Northwestern Ontario.

Highlights

  • Three holes, drilled down-plunge in the ODM Zone show excellent potential for in-pit grade continuity
  • Results expected to increase average grades and bolster economic potential within existing pit shell
  • NR10-575 returns 1.51 g/t gold over 101.6 metres from 306.8 metres to 408.4 metres
  • NR10-582 intersects 1.72 g/t gold over 146.5 metres from 106.2 metres to 252.6 metres
  • NR10-587 intersects 2.18 g/t gold over 298.1 metres from 58.9 metres to 357.0 metres
  • New high grade intervals identified, including 227.4 g/t gold over 1.5 metres in NR10-587

To view the images accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/rr1130.pdf

ODM Zone infill program

Over the past several months the Company has undertaken an extensive infill drilling program designed to improve deposit continuity and demonstrate the potential to increase overall grade confidence. Spatial grade continuity is an important consideration when assigning a mineral resource classification. The majority of the diamond drilling at the Rainy River Gold Project is oriented towards the north to intersect the true width of the deposit. Hole spacings from surface to -300 metres below surface in the ODM Zone average 30-50 metres.

Three diamond drill holes were put into the ODM Zone in order to further investigate grade continuity and to provide new information for the NI 43-101 resource update. These holes were equally spaced 25 metres apart and were collared into the ODM Zone along a common west-to-east oriented section line and allowed to run unaided down the dip and across the plunge of the ODM mineralization. Each hole was drilled to a depth of approximately 600 metres below surface. This portion of the ODM Zone is well defined from historical drilling programs and served as an excellent test area to perform this study. Assay results are presented in Table 1.

Table 1: Length weighted drill hole composites calculated using a 0.4 g/t gold assay cutoff for open pit resources. Core length does not indicate true width of intersection.

HOLE-ID From (m) To (m) Core Length (m) Au (g/t) Vertical Depth (m)
NR10-575 91.1 92.5 1.4 0.65 71
  169.9 288.0 118.2 0.94 170
  306.8 408.4 101.6 1.51 261
  432.1 453.6 21.5 2.06 320
LENGTH WEIGHTED AVERAGE GRADE 1.28  
           
HOLE-ID From (m) To (m) Core Length (m) Au (g/t) Vertical Depth (m)
NR10-582 106.2 252.6 146.5 1.72 138
  258.6 297.9 39.3 2.12 212
  313.3 322.6 9.4 1.04 242
  349.8 360.9 11.1 0.37 269
  439.6 452.3 12.6 0.45 334
LENGTH WEIGHTED AVERAGE GRADE 1.62  
           
HOLE-ID From (m) To (m) Core Length (m) Au (g/t) Vertical Depth (m)
NR10-587 58.9 357.0 298.1 2.18 162
  407.6 425.9 18.3 1.04 321
  434.5 469.6 35.1 1.67 348
  481.9 500.0 18.2 3.66 377
LENGTH WEIGHTED AVERAGE GRADE 2.15  

Additional High Grade Gold Intersected

The drill hole study was also successful in demonstrating the down-dip continuity of the high grade mineralization greater than 3.0 g/t gold. Drill holes NR10-575, NR10-582 and NR10-587 intersected several areas of new, high grade gold mineralization within the ODM Zone. Due to the orientation of the drill holes relative to the orientation of the ODM Zone, the true widths of these intersections are unknown. High-grade intercepts from these drill holes are presented in Table 2.

Table 2: High-grade gold intersections from drill holes NR10-575, NR10-582 and NR10-587. Core length does not indicate true width of intersection.

HOLE-ID From (m) To (m) Core Length (m) Au (g/t) Vertical Depth (m)
NR10-582 149.0 150.5 1.5 42.50 117
  192.5 194.0 1.5 25.85 149
  245.0 246.5 1.5 17.96 189
  285.5 287.0 1.5 37.39 219
           
NR10-575 318.5 320.0 1.5 9.11 235
  321.5 323.0 1.5 6.23 240
  405.5 407.0 1.5 13.81 295
  435.5 437.0 1.5 17.72 316
           
NR10-587 60.5 62.0 1.5 14.41 50
  156.5 158.0 1.5 8.82 124
  165.0 165.5 0.5 227.36 130
  189.5 191.0 1.5 15.35 149
  197.0 198.5 1.5 14.80 156
  236.0 237.5 1.5 24.18 185
  239.0 240.5 1.5 33.72 187
  333.5 336.5 3.0 16.16 259
Including 335.0 336.5 1.5 20.09 259
  461.0 462.5 1.5 19.61 325
  489.5 491.0 1.5 9.46 376
  495.5 497.0 1.5 23.72 381

Commentary

"This phase of the infill program was very successful in showing improved grade continuity within the ODM zone and discovered high grade gold in areas that we had never directly tested," commented Raymond Threlkeld, President and CEO. "Our knowledge of the deposit controls has increased dramatically over the last year. Approximately 71,000 metres of drilling conducted in 2010 will be reflected in the new NI 43-101 resource update which will be filed in the first quarter of 2011."

Methodology for Compositing Down-Dip Drill Holes

Drill hole assay intervals were length composited based upon a 0.4 g/t gold assay cutoff. Composites were calculated within a 0.4 g/t gold grade shell with GEMS mining software. Waste carrying was applied to assays that graded less than cutoff but were still within a continuous portion of the zone based on gold grade. Drill hole sections illustrating the grade shell, composite locations and supporting raw assays are available for viewing on the Company's website http://www.rainyriverresources.com.

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 $70 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 prefeasibility 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 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.

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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