Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

August 31, 2010 07:40 ET

Rainy River Infill Drilling Returns 407.9 g/t Gold (11.9 oz/ton) Over 4.5 Metres in ODM Zone

TORONTO, ONTARIO--(Marketwire - Aug. 31, 2010) - Rainy River Resources Ltd. ("Rainy River" or the "Company") (TSX VENTURE:RR) is pleased to announce drill results from the Rainy River Gold Project in Northwestern Ontario. 

Highlights

  • Early results from infill drilling in ODM and 433 Zones are exceptional

  • ODM zone infill drilling yields 407.9 g/t gold over 4.5 metres

  • 433 zone highlights open pit and underground potential with 1.68 g/t gold over 48.0 metres and 8.27 g/t gold over 4.5 metres

  • New HS zone intercept demonstrates potential at depth

ODM Zone

Diamond drill hole NR10-532, in the western or ODM sector of the large ODM17 Zone, intersected 407.9 g/t gold over a width of 4.5 metres, including 1,221.2 g/t gold over 1.5 metres. This intersection is one of the richest ever recorded at the Rainy River Gold Project and is located in the western plunge of the ODM Zone, approximately 415 metres below surface. It displays good continuity with previously disclosed drill hole NR07-187 which returned 7.43 g/t gold over 4.5 meters approximately 40 metres up-dip from NR10-532. Also in the ODM zone, drill hole NR10-522 intersected 6.22 g/t gold over 1.5 metres at 563 metres depth. The ODM Zone remains open at depth and along strike. Detailed results can be found in Table 1, below.

433 Zone

In the shallow depths of the 433 Zone, drill hole NR10-533 returned a strong 8.27 g/t gold over 4.5 metres, approximately 170 metres below surface. Drill hole NR10-539 intersected 1.68 g/t gold over a wide interval of 48.0 metres, including 4.76 g/t gold over 7.5 metres which in turn includes 13.2 g/t gold over 1.5 metres, at 104 metres below surface, further demonstrated the shallow potential of the 433 zone. Also in the 433 zone, drill hole NR10-530 intersected 30.0 metres grading 0.86 g/t gold. 

South and HS Zones

Drill hole NR10-522 intersected gold mineralization in both the South and HS Zones. In the South Zone an interval of 1.02 g/t gold over a width of 25.5 metres was reported at a depth of 307 metres, further demonstrating the excellent potential of the South zone which remains wide open in all directions. In the HS Zone, which lies between the ODM and 433 Zones, an interval of 6.22 g/t gold over a width of 1.5 metres was intersected at a depth of 713 metres, one of the deepest intersections to date on the project. 

Commentary

"These latest results from the infill program in the ODM and 433 zones have been excellent and demonstrate the exploration potential and development flexibility that the deposit offers," commented Raymond Threlkeld, President and CEO. "The company recently increased its 2010 exploration budget, approved the development of an underground exploration program to commence in 2011 and announced a $20 million financing (in addition to $60 million cash on hand). Rainy River is very well positioned to take the project through advanced exploration and feasibility."

Qualified persons

Rainy River's exploration program in Richardson Township is being supervised by Stuart Averill, 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 over $60 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.

Table 1: Summary of Results
 
HOLE-ID LOCATION VERTICAL DEPTH (m) FROM
(m)
TO
(m)
LENGTH
(m)
GOLD
(g/t)
GOLD
(oz/ton)
ZONE
NR10522 425141 307 336.5 362.0 25.5 1.02 0.03 SOUTH
  425182 563 669.0 670.5 1.5 6.68 0.19 ODM
  425208 713 861.0 862.5 1.5 6.22 0.18 HS
NR10530 425769 121 114.5 144.5 30.0 0.86 0.03 433
NR10532 425303 417 461.0 465.5 4.5 407.94 11.90 ODM
  INCL 425303 416 461.0 471.5 3.0 611.60 17.84 ODM
  INCL 425302 415 462.5 464.0 1.5 1221.19 35.62 ODM
NR10533 425702 170 168.5 173.0 4.5 8.27 0.24 433
  INCL 425702 172 171.5 173.0 1.5 24.10 0.70 433
  425704 233 225.5 243.5 18.0 0.80 0.02 433
NR10535 425744 113 128.0 129.5 1.5 1.05 0.03 433
NR10539 425850 104 80.0 128.0 48.0 1.68 0.05 433
  INCL 425850 121 117.5 125.0 7.5 4.76 0.14 433
  INCL 425850 118 117.5 119.0 1.5 13.19 0.38 433

To view the maps associated with this press release, please visit the following link: http://media3.marketwire.com/docs/rr830-maps.pdf.

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