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Rainy River Resources Ltd
Symbol RR
Shares Issued 83,777,417
Close 2011-09-09 C$ 11.12
Market Cap C$ 931,604,877
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Rainy River drills 1.5 m of 255 g/t Au at Rainy River

2011-09-12 06:49 ET - News Release

Mr. Raymond Threlkeld reports

RAINY RIVER RESOURCES LTD. INTERSECTS 255.0 G/T GOLD OVER 1.5 METRES IN THE WESTERN AREA AND INFILL PROGRAM CONTINUES TO EXPAND THE ODM AT DEPTH

Rainy River Resources Ltd. has released assay results from the Rainy River gold project (RRGP) in Northwest Ontario, where the company is completing 170,000 metres of diamond drilling in 2011. Results are summarized in the associated table.

Highlights

  • Drilling in the Western area continues to intersect narrow zones of high-grade gold mineralization and wider zones of low-grade gold mineralization at relatively shallow depths: NR11783 intersected 255.0 grams per tonne (g/t) gold and 11.2 g/t silver over 1.5 metres while NR11772 intersected one g/t gold over 10.5 metres.
  • The infill program continues to deliver significant results within the ODM, CAP and 17 zones; in addition, significant silver values were encountered.
  • NR11749 intersected 4.6 g/t gold and 14.5 g/t silver over 37.5 metres at the base of the conceptualized pit and within the ODM.
  • NR11761 intersected one g/t gold and 5.3 g/t silver over 16.5 metres within the CAP zone, and NR11736 intersected 4.3 g/t gold and 5.8 g/t silver over nine metres within the 17 zone.

Exploration

Western area

Drilling in the Western area continues to intersect narrow zones of high-grade gold mineralization and wider zones of low-grade gold mineralization. Six additional holes have been completed and all have intersected gold mineralization in two broadly defined southwest-plunging shoots. NR11783 intersected 255.0 g/t gold and 11.2 g/t silver over 1.5 metres at a vertical depth of 225 metres, and NR11772 intersected 38.6 g/t gold over 1.5 metres at a vertical depth of 181 metres.

Several wider zones of low-grade gold mineralization were also drilled: NR11753 intersected 1.1 g/t gold over nine metres, NR11781 intersected 1.1 g/t gold over 4.5 metres, NR11782 intersected 2.8 g/t gold over 4.5 metres, NR11788 intersected 1.1 g/t gold over 7.5 metres and NR11772 intersected one g/t gold over 10.5 metres. All of these intersections have vertical depths between 93 and 225 metres below surface. Drilling in the Western area is still in an early stage. Two diamond drill rigs will continue to delineate this prospect for the remainder of the year.

17 zone eastern extension

Three diamond drill holes pierced the 17 zone eastern extension at moderate depths. All three holes intersected gold mineralization, with NR11739 returning 7.2 g/t gold and 45.7 g/t silver over 4.5 metres at a vertical depth of 457 metres.

Infill program

Several significant results have been received from the continuing infill program at the Rainy River gold project. All infill holes have been either designed to move inferred mineralization to the indicated category and/or to expand known mineralized zones. The majority of the infill holes were also designed to intersect multiple targets downhole.

ODM/17 -- within a conceptualized open pit

Results from four infill holes lying within the pit and the remaining two geotechnical holes are reported herein. Both geotechnical holes were drilled partially down the plane of the mineralization and do not reflect true thicknesses. As with the CAP zone, infill holes within the ODM/17 were designed to bring inferred mineralization into the indicated category.

Highlights include NR11736 at 4.3 g/t gold and 5.8 g/t silver over nine metres at a vertical depth of 116 metres and NR11754 with 4.2 g/t gold over 39.0 metres at a vertical depth of 56 metres, including 302.0 g/t gold over one metre. This wider interval in NR1754 has been capped at 120 g/t gold based upon SRK's capping methodology outlined in the most recent National Instrument 43-101-compliant resource statement. The capped grade is based upon intersected resource domains. NR11767 intersected 1.2 g/t gold over 58.5 metres at a vertical depth of 122 metres. In addition, NR11749 intersected 37.5 metres of 4.6 g/t gold and 14.5 g/t silver at a vertical depth of 379 metres including 13.1 g/t gold over nine metres at a vertical depth of 368 metres. NR11749 is significant in that it demonstrates good high-grade gold mineralization at depth within a conceptualized pit.

ODM/17 -- below a conceptualized open pit

Approximately 14 diamond drill holes have targeted areas below the conceptualized pit which have had either no resources assigned or are inferred blocks that require upgrading to the indicated category. To date, drilling below the conceptualized pit has been highly successful in expanding the known ODM/17 resources. Significant intersections include 4.1 g/t gold over 12.0 metres at a vertical depth of 548 metres in NR11770, 13.0 g/t gold over three metres in NR11787 at a vertical depth of 515 metres, 2.4 g/t gold over 16.5 metres in NR11771 at a vertical depth of 603 metres and NR11759 which returned 7.4 g/t gold over three metres.

CAP

Results from the CAP zone include both new holes and previously unsampled intervals in historic holes. The historic drill holes resampled comprise a series of holes that had been drilled before the recognition of the CAP zone. Significant results from the CAP infill program include: one g/t gold and 5.3 g/t silver over 16.5 metres at a vertical depth of 160 metres in NR11761, 0.7 g/t gold over 22.5 metres at a vertical depth of 47 metres in NR11749, one g/t gold over 16.5 metres at a vertical depth of 233 metres in NR11787, and 6.1 g/t gold and 36.3 g/t silver over 4.5 metres at a vertical depth of 179 metres in NR11770.

Summary

Currently, 10 drill rigs are on-site. Drill progress has slowed with the added deep drilling in the 17 zone eastern extension and the deep ODM drilling. To date, approximately 113,000 metres have been completed out of a 170,000-metre diamond drill program. The company intends to add one to two additional diamond drill rigs to the property by early October in order to:

  1. Facilitate additional engineering requirements;
  2. Ensure the infill program is completed on schedule;
  3. Continue the exploration focus on the Western area, the 17 zone eastern extension, deeper portions of the ODM and district-wide reconnaissance drilling.

Commentary

Raymond Threlkeld, president and chief executive officer, adds: "These results show the potential of the Rainy River gold project on several levels. The infill program continues to intersect significant gold and silver mineralization. Drilling between ODM and 433 and Cap/South has shown very good results in converting what appears to be waste into significantly mineralized zones that could add to in-pit resources. Deep drilling highlights that the project remains open at depth, while exploration drilling in the recently discovered Western area and 17 zone eastern extension continues to be very encouraging. The preliminary economic assessment (PEA) is being completed and is targeted for release by early October. The PEA will not include any drill results subsequent to Feb. 27, 2011. A new resource statement is targeted for release in early 2012 and will include infill and new discovery drilling from Feb. 27 to year-end."

Qualified persons

Rainy River's exploration program in Richardson township is being supervised by Kerry Sparkes, PGeo, vice-president, exploration, a qualified person as defined by National Instrument 43-101. Garett Macdonald, PEng, vice-president, operations, and Mr. Sparkes, PGeo, are the persons responsible for the content of this news release. The company has a rigorous QA/QC (quality assurance/quality control) 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. Overlimit samples were reassayed with a gravimetric finish. Samples with visible gold were automatically analyzed for ore grade by 1,000-gram 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. implement independent QA/QC protocols that include the insertion of certified blanks and standards as part of their routine analysis.

               SUMMARY OF RESULTS                         
                                     Au          Ag
Hole ID                Length     (g/t)       (g/t)

KCBL102                   6.0       1.3         2.6
KCBL102                   4.0       1.8         1.5
KCBL102                   4.0       1.4         0.6
KCBL102                   1.0      12.9         2.1
KCBL102                  15.0       1.6         0.9
KCBL104                 107.0       0.9         5.0
Incl                      2.0       2.4         5.7
And                       3.0       3.2         1.8
And                       6.5       2.6         7.7
And                       4.0       3.4        53.5
KCBL104                   4.3       2.3       167.3
KCBL104                   1.0       7.3         6.8
NR06104                   9.0       1.1         0.3
NR06104                  16.0       0.6         0.9
NR08221                   7.5       0.6         0.8
NR08223                  27.5       1.5        10.6
Incl                      6.0       4.8        13.5
NR09383                   7.5       0.8         2.7
Incl                      3.0       1.1         3.3
NR09383                   3.0       1.1         3.6
NR11723                   3.0       1.3         7.6
NR11732                   9.0       2.4         7.3
Incl                      4.5       3.3         9.3
NR11734
NR11736                  13.0       1.0         0.4
NR11736                   9.0       4.3         5.8
Incl                      3.0      10.6        10.3
NR11736                   4.0       2.0         2.9
NR11739                   4.5       7.2        45.7
Incl                      3.0       9.7        66.3
NR11740                   1.5       6.8         7.7
NR11745                   6.0       1.2         9.2
NR11746
NR11747
NR11748                   4.5       1.6         6.7
NR11749                  22.5       0.7         3.2
Incl                      6.0       1.1         4.2
NR11749                  37.5       4.6        14.5
Incl                      9.0      13.1         2.4
NR11749                   1.5       7.4       245.0
17
NR11751                  14.8       1.5         0.8
NR11751                   9.0       2.5         2.8
NR11751                   6.0       1.8        10.2
NR11752
NR11753                   9.0       1.1         3.1
NR11753                   1.5       9.9         5.4
NR11754                  39.0       4.2         2.5
Incl                      3.0       2.0         2.8
And                       1.0     302.0        16.7
And                      35.0       1.0         2.1
NR11754                   3.0       4.1        13.0
NR11754                   2.0       2.0         0.4
NR11756
NR11757
NR11758
NR11759                   3.0       1.4         4.7
NR11759                   6.0       1.3         1.1
NR11759                   3.0       7.4         2.8
Incl                      1.5      13.8         4.0
NR11759                   9.0       1.3         5.1
NR11760
NR11761                  16.5       1.0         5.3
NR11761                   4.5       1.5         3.4
NR11761                  10.5       1.2         4.1
NR11763D                 24.0       2.4         1.7
Incl                      5.0       8.1         4.1
Incl                      1.0      69.1        10.1
NR11764                   4.5       1.1         0.6
NR11764                   4.5       3.8         1.7
NR11765                   3.0       1.6         2.9
NR11766
NR11767                   1.0      23.7         7.8
NR11767                  58.5       1.2         2.0
Incl                     21.5       1.5         2.8
Incl                      7.0       2.1         4.2
And                      15.0       1.4         1.4
NR11767                   2.0       4.3        14.2
NR11767                   3.6       2.3         2.0
NR11767                   4.0       3.4         2.2
NR11768
NR11770                  10.5       1.2         4.4
NR11770                   4.5       6.1        36.3
Incl                      1.5      15.8        98.4
NR11770                  12.0       4.1         1.3
Incl                      1.5      21.9         3.8
NR11771                   3.0       1.3         7.2
NR11771                   1.8       7.0        35.9
NR11771                  16.5       2.4         3.4
Incl                      4.5       4.7         3.0
NR11771                   1.5      11.4         1.9
NR11772                  10.5       1.0         0.7
NR11772                   1.5      38.6         1.9
NR11773                   4.6       2.0        17.9
NR11776
NR11779
NR11780
NR11781                   4.5       1.1         1.2
NR11782                   4.5       2.8         0.5
NR11783                   1.5     255.0        11.2
NR11784
NR11786
NR11787                  16.5       1.0         4.1
NR11787                   3.0      13.0         3.6
Incl                      1.5      23.9         4.1
NR11787                   1.5      45.4         3.9
NR11788                   7.5       1.1         2.6
NR11791                   2.3       8.6         2.4
Incl                      0.8      16.2         3.7
NR11797

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