Rainy River Resources Ltd.
TSX VENTURE : RR

Rainy River Resources Ltd.

June 29, 2005 12:49 ET

Rainy River Resources Ltd. Completes Acquisition of Rainy River Project and Corporate Reorganization

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 29, 2005) - RAINY RIVER RESOURCES LTD. (the "Company") (TSX VENTURE:RR) is pleased to announce that it has completed its acquisition from Nuinsco Resources Limited ("Nuinsco") of Nuinsco's 100% interest in the Rainy River Mineral Project located in the Rainy River District of northwestern Ontario. The Company has also completed its purchase of all of the issued and outstanding securities of 608458 B.C. Ltd. It has received approval from the holders of a majority of the Company's shares and final acceptance from the TSX Venture Exchange.

The acquisitions follow the recent completion by the Company of its 4 for 1 stock split and change of name to "Rainy River Resources Ltd." to better reflect its change of business to a mineral exploration company.

The Rainy River project comprises a land package of some 16,530 hectares in twelve townships in northwestern Ontario. Exploration to date has led to three mineral discoveries, the gold bearing #17 zone and the #433 zone, two separate volcanogenic massive sulphide deposits; and the high grade #34 nickel-copper- PGM zone. Below is a summary of the historical work on the property. The Company intends to evaluate all three zones by further drilling aimed at expanding the deposits and exploring for other potential mineral occurrences.

In 1993, Nuinsco Resources Ltd. (TSX:NWI) began a large-scale reverse circulation program within the Rainy River greenstone belt managed by Overburden Drilling Management Limited, leaders in basal till exploration. This work led to the delineation of largest and most intensely gold-anomalous till layer ever encountered on a reverse circulation program in Canada, much larger, in fact, than the anomaly that led to the discovery of the Casa Berardi gold deposits in the Abitibi greenstone belt in northwestern Quebec. Beginning in 1993 through to 1999, Nuinsco drilled over 700 reverse circulation holes defining five distinct, northeast trending, "gold-in-till" dispersal anomalies centered in the south half of Richardson Township. Subsequent diamond drilling by Nuinsco along one of the five dispersal trains led to two blind gold discoveries, the #17 Gold Zone and the #433 Gold Zone approximately 500 metres in the up-ice direction from the latter. In addition, during the course of drill defining the #17 Gold Zone, a small but high grade Ni-Cu-PGE massive sulphide deposit was also located by Nuinsco. Despite this excellent rate of discovery, the four other "gold-in-till" dispersal trains were not systematically explored and are considered to be top priority targets.

Two separate studies conducted recently by Dr. L.D. Ayres, a noted volcanologist formerly with the University of Manitoba and Dr. James M. Franklin, also a noted specialist in this field with over 30 years of experience in the study of Bousquet-style mineral deposits both concluded that the #17 Gold Zone mineralization closely resembles that of the Thompson-Bousquet gold-rich mining camp in the Abitibi greenstone belt and to the Sturgeon Lake shallow water VMS deposits. As observed by Dr. Franklin, of crucial importance is that both of these analogues are multiple deposit systems (Nuinsco, 1997).

The #17 Gold Zone lies within a broad expanse of anomalous dacitic metavolcanics which, based on several reverse circulation drill holes analyzed by Overburden Drilling Management Limited, averaged about 100 ppb gold. The zone varies from 40-140 metres wide and currently measures approximately a kilometre in strike length. The Rainy River Project contains historical inferred mineral resources as defined by previous operators, Nuinsco Resources Ltd., of 11,025,000 tonnes grading 1.33 g/t gold (471,400 ounces) outlined by widely spaced drill intersections over a 1.0 kilometre strike length. Contained within this is a zone of higher grade material with a combined total of 1,736,000 tonnes grading 1.56 g/t (87,100 contained ounces) of gold. The resource and estimates are historical in nature, have not been verified by the issuer's qualified person, and should not be relied upon. However, Rainy River believes that these historical estimates are relevant. This is based on a review of the technical parameters of the historical drilling results, including on-site confirmation of drill hole locations, checks on the QA/QC drill hole locations, review of available drill core, and the fact that drilling was completed and documented in a professional manner. It is also based on Rainy River's interpretation supporting the geological consistency of previous drill hole intersections combined with drill hole results from several drill programs conducted by Nuinsco since 1994. Preliminary metallurgical tests conducted by Lakefield Research on the #17 Gold Zone mineralization for Nuinsco indicate that on find grind, the gold is free milling and amenable to leaching with gold recoveries of 93% being achieved.

Gold mineralization is present in two behaviors, in direct relation with volcanogenic sulphides disseminated within an altered east trending felsic volcanic-sedimentary package and remobilized along N-S fractures. The #17 Gold Zone was originally interpreted to be an east trending, tabular shaped ore body and holes were drilled at right angles to the strike. Drilled in this manner, drill intersections on the #17 Zone indicate an average gold grade of 1.33 grams per tonne. However, nine holes were drilled through the #17 Gold Zone at various oblique angles to the strike. The re-orientation of the diamond drill pattern recorded consistently higher-grade mineralization within the broad auriferous envelope. The best intersection from one of the diagonal drill holes, Hole 96-45, consisted of 62.5 metres (196.25 feet) averaging 5.6 g/t (0.164 opt gold) including a core section of 15 metres (47.10 feet) carrying 15.8 g/t (0.438 opt gold). The reason for the dramatic grade variance in gold encountered in the diagonal holes is not fully understood.

Nelson W. Baker, P.Eng., the Qualified Person for the Rainy River Project as defined in NI43-101, prepared the technical disclosure in this release.

All shares and warrants issued by the Company to Nuinsco, the Mineral Co security holders and the recipients of the finders' fees (see news release dated February 17, 2005) are subject to a four month hold period expiring on October 24, 2005.

The Company also announces that Mr. Marshall Bertram has been appointed as its Chief financial Officer. Mr. Bertram has more than forty years of experience as an administrator in the mining business.

ON BEHALF OF THE BOARD OF DIRECTORS OF

RAINY RIVER RESOURCES LTD.

Charles Raymond, President


The TSX Venture Exchange has in no way passed upon the merits of the transaction and not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Rainy River Resources Ltd.
    Mr. Charles Raymond
    President
    (604) 731-6900
    or
    Rainy River Resources Ltd.
    Mr. Nelson Baker
    VP Exploration
    (604) 731-6900
    (604) 731-6999 (FAX)