Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

May 20, 2010 09:00 ET

Rainy River Provides Drilling Update

TORONTO, ONTARIO--(Marketwire - May 20, 2010) - Rainy River Resources Ltd. (TSX VENTURE:RR) (the "Company" or "Rainy") announces further encouraging assay results from its Rainy River gold project in northwestern Ontario.

Highlights:

  • 433 Zone -- 121.20 g/t (3.53 oz/t) over 1.5 metres in previously untested portion of zone
  • Continuity of Beaver Pond Zone increasing - up plunge extension
  • Additional high grade gold discovered to the west of the Beaver Pond Zone

433 Zone Down Plunge Drilling Intersects High-Grade Gold – 121.20 g/t (3.53 oz/t) over 1.5 metres

As part of the infill drilling campaign being conducted on the 433 Zone, drill hole NR07-181 (previously reported by the Company on November 13, 2007) was extended (deepened) into the interpreted high-grade plunge corridor as drill hole NR07-181E which intersected 63.57 g/t (1.85 oz/t) gold over 3.0 metres, including 121.20 g/t (3.53 oz/t) gold over 1.5 metres, approximately 535 metres vertically below surface. This new intersection is very significant in that it occurs 145 metres up-plunge of previously reported drill hole NR09-406 (89.86 g/t gold over 1.5 metres – see news release dated December 16, 2009), and 120 metres down plunge of drill hole NR08-250 which intersected 7.61 g/t gold over 18.0 metres including 79.5 g/t gold over 1.5 metres (see news release dated May 27, 2008). Additionally, drill hole NR10-485 intersected an impressive 1.77 g/t gold over 40.5 metres including a higher grade core of 7.77 g/t gold over 3.0 metres. NR10-484 also intersected a higher grade interval of 6.08 g/t gold over 1.5 metres within a wider gold-bearing envelope.

Additional infill drilling between these holes is currently ongoing and assay results are pending.

Detailed assay results for all drill holes are located in Table 1, below.

Beaver Pond Drilling – Gold Zone Expands Up Plunge

A total of 14 diamond drill holes have been completed in the Beaver Pond Zone area testing the up-plunge potential and short range variability of the new high-grade zone defined by previously reported drill hole NR09-446 which intersected 6.0 metres grading 352.84 g/t (10.29 oz/t) gold, including 701.29 g/t (20.45 oz/t) gold over 3.0 metres (see the Company's news release dated January 18, 2010).

All holes successfully intersected the Beaver Pond Zone both up and down plunge. Most notably, NR10-474 intersected 3.40 g/t gold over 12.0 metres including 4.57 g/t gold over 7.5 metres and a second interval grading 6.17 g/t gold over 1.5 metres at a vertical depth of 260 metres below surface. To date, the short range predictability of the high-grade gold mineralization within a 30 metre radius of the NR09-446 is extremely encouraging with good continuity of the mineralization between drill holes.

The Company had further encouraging results in the additional drilling which focused on testing the up-plunge potential of the Zone NR10-481 intersected 5.99 g/t gold over 1.5 metres at a vertical depth of 184 metres below surface and NR10-490 intersected 1.57 g/t gold over 9.0 metres including 6.71 g/t gold over 1.5 metres only 140 metres below surface.

At a vertical depth of 455 metres below surface, drill hole NR10-487 intersected 1.75 g/t gold over 6.0 metres, which is approximately 275 metres below NR09-446. This drill hole did not test the interpreted high-grade core of the Beaver Pond Zone as it deviated east of the interpreted gold zone plunge.

Beaver Pond Western Extension – Additional High-Grade Gold Discovered

A total of six follow-up drill holes have been completed in the western extension of the Beaver Pond Zone. These holes were designed to follow up on previously released drill hole NR09-413 which intersected 22.2 g/t (0.65 oz/t) gold over 1.5 metres hosted within a wider interval grading 2.10 g/t over 19.5 metres (see news release dated February 22, 2010) and were successful in defining additional high grade gold mineralization in this newly developing gold target. Drill hole NR10-473 intersected 9.32 g/t gold over 1.5 metres at a vertical depth of 395 metres below surface. This new intersection is located 115 metres down-plunge of NR09-413 and the mineralization remains open down dip and along strike. Drilling is widely spaced in this portion of the property and follow-up drilling of these targets is being planned.

Western Area Drilling – Step-Out Exploration Continues

Two drill holes (NR10-465 and NR10-461) were drilled approximately 1,000 metres west along strike of the Beaver Pond Zone as part of the wide-spaced step-out exploration program. Anomalous gold mineralization was intersected in altered dacitic rocks and is detailed in Table 1. Follow up drilling of this mineralization in the highly prospective area west of the Beaver Pond Zone is continuing.

Commentary

"Our drill results continue to demonstrate the high-grade nature of the 433 Zone," commented Ray Threlkeld, President and CEO. "Drill hole NR07-181E, which was extended from the central ODM Zone into the 433 Zone, opens a new high-grade core with a potential plunge distance of 260 metres. We will aggressively pursue infill drilling to bring this zone into a planning status. Drilling to the west along bedrock gold anomalies has shown significant values and we will focus on the depth and strike potential in that area."

About Rainy River Resources Ltd.

Rainy River Resources Ltd. is a Canadian precious metals exploration company whose key asset is the Rainy River gold project in Richardson Township in Northwestern Ontario. The Company's property is extremely well located, with easy access by a network of roads and in close proximity 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 province of 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.

During the past several years the Company has been conducting a dual-focused exploration program on its Rainy River project, consisting of definition diamond drilling of the main gold resource with accompanying scoping-style studies, and selective diamond drill testing of high-priority gold targets defined primarily by RC drilling within the large gold system centered in the so-called 17/ODM/433 zones. To date its efforts have identified a total inferred and indicated resource of approximately 5 million ounces of gold. With a large land position, approximately CDN $65 million in the treasury, and numerous ore grade intercepts on drill targets outside the main resource of the 17/ODM/433 zones, Rainy River is well positioned to continue with its drill program and to continue planning for future development of a mine.

RAINY RIVER RESOURCES LTD.

Raymond W. 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 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.

To view the images accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/RR0520.pdf

TABLE 1: Summary of Significant Results

HOLE-ID SECTION VERTICAL DEPTH (m) FROM (m) TO (m) LENGTH (m) AU g/t ZONE COMMENTS
NR07181E 425471 535 672.5 675.5 3.0 63.57 433 NEW
INCL 425471 535 672.5 674.0 1.5 121.20 433 NEW
NR10461 424075 165 214.0 218.5 4.5 1.02 WEST NEW
NR10464 425435 29 34.0 35.0 1.0 1.26 HS CONFIRM
  425439 191 237.5 239.0 1.5 1.47 HS ADD
  425442 255 320.0 321.5 1.5 3.30 433 WEST NEW
NR10465 424005 181 238.0 239.5 1.5 1.48 WEST NEW
  424007 191 251.5 253.0 1.5 1.09 WEST NEW
NR10472 425494 21 25.0 26.0 1.0 1.12 HS ADD
  425494 54 65.0 66.5 1.5 11.60 HS CONFIRM
  425495 128 158.0 159.5 1.5 1.21 HS CONFIRM
  425497 191 237.5 239.0 1.5 1.28 433 WEST NEW
NR10473 424554 74 82.0 83.5 1.5 0.93 WEST BEAVER NEW
  424557 244 274.0 275.5 1.5 0.93 WEST BEAVER NEW
  424558 271 305.5 307.0 1.5 0.95 WEST BEAVER NEW
  424560 294 332.5 334.0 1.5 9.32 WEST BEAVER NEW
NR10474 424890 239 278.0 288.5 10.5 0.94 BP CONFIRM
  424892 259 302.0 314.0 12.0 3.40 BP CONFIRM
INCL 424892 259 305.0 312.5 7.5 4.57 BP CONFIRM
INCL 424892 257 305.0 306.5 1.5 13.46 BP CONFIRM
AND 424892 262 311.0 312.5 1.5 6.17 BP CONFIRM
  424905 342 408.5 410.0 1.5 5.98 BP FW NEW
NR10475 424925 192 224.0 225.5 1.5 4.68 BP CONFIRM
  424927 246 291.0 292.0 1.0 1.45 BP CONFIRM
NR10476 424612 74 82.0 83.5 1.5 1.35 WEST BEAVER NEW
  424611 159 179.5 181.0 1.5 1.12 WEST BEAVER NEW
  424612 212 241.0 242.5 1.5 1.05 WEST BEAVER NEW
  424612 227 259.0 260.5 1.5 0.92 WEST BEAVER NEW
  424613 240 274.0 275.5 1.5 2.53 WEST BEAVER NEW
  424615 278 320.5 323.5 3.0 1.13 WEST BEAVER NEW
  424619 316 370.0 371.5 1.5 1.08 WEST BEAVER NEW
NR10477 424724 178 226.0 227.5 1.5 6.63 WEST BEAVER FW NEW
                 
NR10478 424960 180 206.0 216.5 10.5 0.61 BP CONFIRM
  424967 348 415.0 416.0 1.0 1.76 BP FW NEW
NR10479 424993 83 96.0 97.0 1.0 3.03 BP HW NEW
  424998 214 251.5 254.5 3.0 0.78 BP CONFIRM
  425004 371 448.0 451.0 3.0 2.44 BP FW NEW
  425004 379 458.5 460.0 1.5 1.14 BP FW NEW
  425006 411 499.0 500.5 1.5 1.89 BP FW NEW
NR10480 425533 257 320.0 321.5 1.5 1.23 433 WEST NEW
NR10481 424995 144 164.0 170.0 6.0 1.27 BP CONFIRM
  424995 184 213.5 215.0 1.5 5.99 BP NEW
  424997 287 339.5 341.0 1.5 2.27 BP FW NEW
  424999 329 390.5 392.0 1.5 6.29 BP FW NEW
NR10482 425053 64 74.0 75.0 1.0 0.91 BP HW NEW
  425053 159 186.5 188.0 1.5 1.73 BP CONFIRM
  425053 169 198.5 200.0 1.5 1.37 BP CONFIRM
  425045 325 395.0 396.5 1.5 1.77 BP FW NEW
NR10483 424660 135 149.5 154.0 4.5 1.20 WEST BEAVER NEW
NR10484 425728 124 141.5 143.0 1.5 1.20 HS CONFIRM
  425728 230 254.0 293.0 39.0 0.89 433 CONFIRM
INCL 425728 248 288.5 290.0 1.5 6.08 433 CONFIRM
NR10485 425553 19 23.0 24.5 1.5 1.57 HS ADD
  425544 212 263.0 264.5 1.5 1.02 HS ADD
  425763 192 222.5 224.0 1.5 4.93 433 HW CONFIRM
  425763 220 239.0 279.5 40.5 1.77 433 CONFIRM
INCL 425764 228 263.0 270.5 7.5 5.22 433 CONFIRM
INCL 425764 228 263.0 266.0 3.0 7.77 433 CONFIRM
NR10487 424756 275 340.5 349.5 9.0 1.82 BP HW NEW
INCL 424756 272 340.5 342.3 1.8 7.39 BP HW NEW
  424782 455 580.0 586.0 6.0 1.75 BP NEW
  424790 495 637.0 640.0 3.0 1.33 BP NEW
NR10488 425015 130 141.5 161.0 19.5 1.10 BP ADD
  425014 290 341.0 344.0 3.0 1.34 BP FW NEW
  425014 297 350.0 351.5 1.5 3.09 BP FW NEW
NR10489 424685 145 157.0 163.0 6.0 1.23 WEST BEAVER NEW
  424687 305 340.0 343.0 3.0 1.00 WEST BEAVER NEW
NR10490 425038 141 159.5 168.5 9.0 1.57 BP CONFIRM
INCL 425038 144 167.0 168.5 1.5 6.71 BP CONFIRM
  425028 302 357.5 360.5 3.0 8.42 BP FW NEW
NR10491 425025 86 98.5 101.5 3.0 1.04 BP HW NEW
  425024 120 128.5 149.0 20.5 0.89 BP ADD
  425017 248 290.5 293.5 3.0 1.36 BP FW NEW
  425016 263 308.5 314.5 6.0 1.51 BP FW NEW
NR10493 424580 61 67.0 68.5 1.5 1.32 WEST BEAVER NEW
  424580 83 91.0 92.5 1.5 1.11 WEST BEAVER NEW
  424585 187 208.0 209.5 1.5 0.96 WEST BEAVER NEW
NR10494 425119 69 78.5 81.5 3.0 1.18 BP CONFIRM
  425117 135 159.5 161.0 1.5 1.80 BP CONFIRM
NR10495 425068 63 69.5 74.0 4.5 0.94 BP CONFIRM
  425070 275 327.5 329.0 1.5 3.87 BP FW NEW
NR10496 425689 223 263.0 267.5 4.5 2.32 433 CONFIRM
  425688 276 326.0 336.5 10.5 1.02 433 CONFIRM
NR10498 425154 51 59.0 60.0 1.0 0.94 BP CONFIRM
  425151 215 254.0 255.5 1.5 1.17 BP FW NEW
NR10499           NSA BP  

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