Rainy River Resources Intersects Significant Mineralization in Cap Zone, With 15.0 g/t Gold and 24.4 g/t Silver Over 4.8 Metres
28.03.2012 | Marketwire
TORONTO, ONTARIO -- (Marketwire) -- 03/28/12 -- Rainy River Resources Ltd. ("Rainy River" or the "Company") (TSX: RR) is pleased to announce assay results from the Rainy River Gold Project ("RRGP") in northwest Ontario. Results are summarized in Table 1.HIGHLIGHTS
- CAP Zone drilling continues to intersect potential underground grades and widths.
- Drill hole NR121069 intersects 4.8 metres grading 15.0 g/t gold and 24.4 g/t silver at a vertical depth of 472 metres.
- Drill hole NR07198W3 intersects 3.5 metres grading 12.0 g/t gold and 2.9 g/t silver at a vertical depth of 517 metres.
- Within the ODM Zone and within the resource pit, drill hole NR111014 intersects 16.5 metres grading 12.7 g/t gold and 3.3 g/t silver, and continues to demonstrate the high grade nature of the ore at depth.
- Within the ODM Zone and below the resource pit, drill hole NR07198W1 intersects 10.5 metres grading 5.0 g/t gold and 1.4 g/t silver.
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CAP ZONE
Drilling in 2012 on the CAP Zone continues to demonstrate the future underground potential of this zone. Follow up drilling was designed to expand upon the results from hole NR11937, which returned values of 4.0 g/t gold and 15.1 g/t silver over 12.0 metres (press release dated February 2, 2012). Two additional holes, NR121069 and NR07198W3, drilled at the same relative elevation as the gold mineralization intersected in hole NR11937 intersected significant gold mineralization at 500 metres and at 175 metres, respectively, along strike to the east from NR11937. These intersections potentially represent two new mineralized shoots within the CAP Zone that may be exploited through future underground mining. Drilling will begin to explore these zones in the plunge direction.
Drilling within the pit portion of the CAP Zone will also continue to potentially convert inferred resources outlined in the latest mineral resource statement to higher confidence levels, which will be used in the pending feasibility study. Approximately 647,000 ounces within the pit continue to be classified as inferred resources (all zones), and will be targeted over the next few months. The current drilling is intended to move these ounces into measured and indicated resources.
CAP ZONE IN-PIT
Five holes targeted inferred blocks and/or zone periphery within the pit portion of the CAP Zone. Significant results include 6.0 metres grading 1.2 g/t gold and 5.3 g/t silver in hole NR121025 at a vertical depth of 79 metres, 55.5 metres grading 0.6 g/t gold and 2.8 g/t silver in hole NR121055 at a vertical depth of 248 metres and 14.1 metres grading 0.6 g/t gold and 3.4 g/t silver in hole NR121086 at a vertical depth of 106 metres.
CAP ZONE BELOW-PIT
Deep drilling in the CAP Zone in 2012 has continued to demonstrate good grades and significant thicknesses. Hole NR121069 intersected 4.8 metres grading 15.0 g/t gold and 24.4 g/t silver at 472 metres, the same elevation as NR11937 and approximately 500 metres along strike to the east from that hole, including 24 g/t gold and 33.7 g/t silver over 2.5 metres. Hole NR07198W3 intersected 3.5 metres grading 12.0 g/t gold and 2.9 g/t silver, at a similar elevation of 517 metres and approximately 175 metres along strike to the east from NR11937.
ODM - IN PIT
Six additional holes have been completed deep within the resource pit, and several continue to demonstrate above resource grade values for this portion of the pit. These additional holes were assayed after the resource cutoff date of December 31, 2011, and will be included in the next resource update. Hole NR111014 intersected 16.5 metres grading 12.7 g/t gold and 3.3 g/t silver at a vertical depth of 403 metres including 6.0 metres grading 33.2 g/t gold and 6.8 g/t silver at a vertical depth of 407 metres. Hole NR121055 intersected 1.6 g/t gold and 1.2 g/t silver over 33.0 metres at a vertical depth of 509 metres and Hole NR121033 intersected 1.4 g/t gold and 1.3 g/t silver over 57.0 metres at a vertical depth of 462 metres.
ODM - BELOW PIT
To better define Rainy River's underground resources, a long-term program of directional drilling and wedging is now underway. Hole NR07198W1 intersected 10.5 metres grading 5.0 g/t gold and 1.4 g/t silver at a vertical depth of 788 metres, hole NR07198W3 intersected 2.5 g/t gold and 1.6 g/t silver over 6.0 metres at a vertical depth of 763 metres and hole NR07198W2 intersected 4.5 metres grading 3.5 g/t gold and 2.9 g/t silver at a vertical depth of 774 metres. It is expected that this program will provide better continuity and certainty to the underground resources.
COMMENTARY
Raymond Threlkeld, President and CEO of Rainy River Resources, commented, "The results released today show the potential of the Cap Zone to play a significant role in adding higher confidence ounces and in developing the underground potential of the Rainy River Gold Project. The ODM infill results are consistent with previous drilling, while the ODM below-pit results are also encouraging from an underground project perspective. With our strong cash balance and continued excellent drill results, we are well-positioned to advance the Project. A revised Preliminary Economic Assessment is expected to be completed by mid-2012, followed by a resource update incorporating drilling from the first few months of this year. This mid-year resource will be used for the Feasibility Study, targeted for completion in early 2013."
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. Mr. Sparkes, P.Geo., is also the person responsible for the content of this news release. The Company has a rigorous QA/QC program in place to ensure best practices in sampling and analysis of drill core. All drill core is marked for sampling and then split in half with a diamond saw blade. Samples are placed in sealed bags with security tags. All samples were assayed using a standard fire assay, 30 gram nominal sample weight with an AA finish. Over-limit samples were re-assayed with a gravimetric finish. Samples with visible gold were automatically analyzed for Ore Grade by 1000g screen fire assay, with coarse and fine fractions being combined proportionately and the fine fraction being assayed twice. Standards, blanks and duplicates are inserted every 25 metres. ALS Canada Ltd. performed primary assaying, with duplicates being analyzed at Activation Laboratories Ltd. ALS Canada Ltd. and Activation Laboratories Ltd. implements independent QA/QC protocols that include the insertion of certified blanks and standards as part of their routine analysis.
About Rainy River
Rainy River Resources Ltd. is a Canadian precious metals exploration company whose key asset is the Rainy River Gold Project, a large gold system centred in Richardson Township (part of Chapple Township). As of February 29, 2012, the Company had $112 million in cash and securities, and is well funded for its 2012 plans to 1) commence a feasibility level study on the RRGP; 2) continue growing the existing resource through exploration; 3) conduct a condemnation program in areas identified for potential mine facilities; and 4) continue regional exploration. RRGP is very 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 in Canada. The Company is working to advance the early-stage discoveries at its TPK Joint Venture Property, also in Ontario, where it can earn a 51% interest in the property from Northern Superior Resources Inc. 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 W. Threlkeld, President & CEO
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
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. These statements include the possible conversion of inferred resources into higher confidence categories of resources. 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.
VERTICAL
DEPTH FROM LENGTH AU AG
HOLE-ID SECTION (M) (M) TO (M) (M) (G/T) (G/T) ZONE
NR07198W1 425227 788 867.0 877.5 10.5 5.0 1.4 ODM Deep
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NR07198W2 425186 728 807.0 808.5 1.5 27.5 22.7 ODM Deep
NR07198W2 425186 774 864.0 868.5 4.5 3.5 2.9 ODM Deep
NR07198W2 425186 784 879.0 880.5 1.5 10.3 7.0 ODM Deep
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NR07198W3 425183 517 550.0 553.5 3.5 12.0 2.9 Cap Deep
NR07198W3 425216 727 808.5 810.0 1.5 16.1 13.3 ODM Deep
NR07198W3 425223 763 853.5 859.5 6.0 2.5 1.6 ODM Deep
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NR111014 425159 403 466.5 483.0 16.5 12.7 3.3 ODM
INCL 425160 407 477.0 483.0 6.0 33.2 6.8 ODM
INCL 425159 405 477.0 478.5 1.5 48.7 11.6 ODM
AND 425160 409 481.5 483.0 1.5 81.7 13.9 ODM
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NR121025 425241 79 85.5 91.5 6.0 1.2 5.3 Cap
NR121025 425269 396 456.0 523.5 67.5 0.6 0.9 ODM
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Deep (433 FW
NR121031 425443 873 1027.5 1030.5 3.0 18.1 1.1 Deep)
Deep (433 FW
INCL 425443 874 1029.0 1030.5 1.5 34.4 0.7 Deep)
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NR121033 425243 462 519.0 576.0 57.0 1.4 1.3 ODM
INCL 425241 445 519.0 532.5 13.5 3.0 2.2 ODM
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NR121044 425200 420 517.5 522.0 4.5 6.1 2.7 ODM
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NR121055 425326 248 247.5 303.0 55.5 0.6 2.8 Cap
INCL 425326 252 276.0 283.5 7.5 1.0 5.1 Cap
NR121055 425351 509 597.0 630.0 33.0 1.6 1.2 ODM
INCL 425352 515 612.0 630.0 18.0 2.1 1.4 ODM
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NR121066 425526 681 892.5 898.5 6.0 2.7 1.7 ODM Deep
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NR121069 425494 472 499.5 504.3 4.8 15.0 24.4 Cap Deep
INCL 425494 473 501.8 504.3 2.5 24.4 33.7 Cap Deep
NR121069 425569 784 874.5 877.5 3.0 4.4 4.1 ODM Deep
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NR121086 425490 106 104.4 118.5 14.1 0.6 3.4 Cap
Contacts:
Rainy River Resources Ltd.
Indi Gopinathan
Director, Investor Relations
416-645-7289
igopinathan@RainyRiverResources.com
www.RainyRiverResources.com