Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

June 17, 2011 18:00 ET

Rainy River Resources Clarifies Details of Resource Disclosure

TORONTO, ONTARIO--(Marketwire - June 17, 2011) - Rainy River Resources Ltd. ("Rainy River" or the "Company") (TSX VENTURE:RR) is issuing this news release as a result of a review by the British Columbia Securities Commission, in order to clarify certain details of its technical disclosure of resource estimates at its Rainy River Gold Project situated in Richardson Township in northwestern Ontario (the "Rainy River Gold Project"). In certain of its corporate presentations and investor relations materials, some of which were posted on the Company's website, the Company has reported resource estimates for the Rainy River Gold Project that included:

  • resource totals that were not reported separately by the applicable mineral resource categories prescribed under National Instrument 43-101 ("NI 43-101");
  • total resource numbers which added inferred resources to other categories of mineral resources; and
  • the quantity of contained metal or mineral resources without stating the grade or quality and quantity for each category of resources.

In addition, certain disclosures of technical information did not identify the qualified person who approved, prepared or supervised the preparation of that information and that person's relationship to the Company.

The Company's resources disclosures were accurately reported in a news release dated February 24, 2011 and these resource estimates remain unchanged. This release is intended to provide greater clarity with respect to the Company's recent corporate presentations and investor relations materials.

The current resource estimate for the Rainy River Gold Project is set out in the technical report dated April 8, 2011, entitled "Mineral Resource Evaluation Rainy River Gold Project Western Ontario, Canada" prepared for Rainy River by SRK Consulting (Canada) Inc. (the "2011 SRK Technical Report"). The mineral resource statement for the Rainy River Gold Project, as extracted from the 2011 SRK Technical Report, is summarized in the table below. The effective date of this resource estimate is February 24, 2011. This information was fully and accurately disclosed in the Company's news release issued on February 24, 2011. The mineral resource statement is reported at two cut-off grades. Open pit mineral resources are reported at a cut-off of 0.35 grams per ton gold, whereas underground mineral resources are reported at a cut-off grade of 2.5 grams per ton gold.

Mineral Resource Statement*, Rainy River Gold Project, Ontario, SRK Consulting, February, 24, 2011.
TonnesAuAuAgAg
Category'000sg/touncesg/tounces
Open Pit**
Measured14,7071.21572,2721.84869,332
Indicated77,9341.052,639,8502.245,615,597
Measured and
Indicated92,6411.083,212,1222.186,484,929
Inferred104,5910.802,702,7542.317,781,272
Underground**
Measured395.667,1492.383,009
Indicated1,1975.18199,1473.30127,019
Measured and
Indicated1,2365.20206,2963.27130,028
Inferred3,8313.83472,0292.62322,811
Combined Mining
Measured14,7461.22579,4211.84872,341
Indicated79,1311.112,838,9972.265,742,616
Measured and
Indicated93,8771.133,418,4182.196,614,957
Inferred108,4220.913,174,7832.328,104,083

* Mineral resources are reported in relation to an elevation determined from optimized pit shells. Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate.

** Open pit mineral resources are reported at a cut-off grade of 0.35 grams per ton gold and underground mineral resources are reported at a cut-off grade of 2.50 g/t gold. Cut-off grades are based on a price of US$1,025 per ounce of gold and gold recoveries of 88 percent and 90 percent for open pit and underground resources, respectively, without considering revenues from other metals.

The resource estimation work was completed in Toronto by Ms. Dorota El-Rassi P. Eng. (PEO #100012348) and Mr. Glen Cole, P. Geo. (APGO #1416), both "independent qualified persons" as this term is defined in NI 43-101. The complete 2011 SRK Technical Report is available on the Company's website (www.rainyriverresources.com) and under the Company's profile on SEDAR. Readers are urged to refer to the complete 2011 SRK Technical Report for further information on these mineral resource estimates, which are subject to the qualifications and notes set forth therein. Prior disclosures by the Company of mineral resource estimates should be read together with the clarifications in this news release.

The Rainy River Gold Project exploration program is being supervised by Kerry Sparkes, P.Geo., Vice-President Exploration, a Qualified Person as defined by NI 43-101. Garett Macdonald, P.Eng., Vice President Operations and Kerry Sparkes, P.Geo. are the persons responsible for the technical content of this news release.

The Company has amended its corporate presentations and investor relations materials on its website to ensure that all information contained therein is NI 43-101 compliant.

About Rainy River

Rainy River is a Canadian precious metals exploration company whose key asset is the Rainy River Gold Project. With approximately $125 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 centred 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

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.

Contact Information