Rainy River Resources
NI 43-101 Resources of 3.42M oz. Au Indicated and 3.17M oz. Au Inferred (Feb. 2011)
Message: Company 2009 projects Update
| January 12, 2009 |
| Rainy River Maintains Solid Cash Position, Plans Drill Testing of Key New Gold Targets and Further Resource Definition and Economic Studies in 2009 |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 12, 2009) - Nelson W. Baker, President and CEO of Rainy River Resources Ltd. (TSX VENTURE:RR), is pleased to report that, with $27 million in the treasury, the Company is well cashed up for a continued diamond drilling program in Richardson Township, primarily focusing on newly defined high-priority gold targets immediately west of the established gold zones. As well, the 2009 work program is designed to achieve clear milestones with respect to the size, grade and preliminary economics of the gold resources in the known zones. Revised Resource Estimation Due Q1/09 Since the Company's initial NI 43-101 resource released on February 28, 2008, a total of 107 drill holes aggregating 56,944.7 metres have been completed in Richardson Township. Of that total, 79 drill holes totalling 42,291.7 metres were drilled to further define the near-surface portion of the gold resources. In May 2008, the Company engaged the services of SRK Consulting (Canada) Inc., a reputable, independent group of specialized mining consultants with extensive global experience, to provide a revised resource estimate which will include the investigation of different mining scenarios and the application of economic sensitivities. This resource estimate is expected at the end of Q1, 2009. SRK will then proceed with a preliminary economic assessment (PEA) scheduled for completion by Q4, 2009. Other Studies Planned for 2009 In November 2008, with the objective of progressively moving the Rainy River Project ultimately to the feasibility stage, the Company engaged the services of Klohn Crippen Berger, an international engineering and environmental consulting firm whose specialty is to provide integrated environmental services for advanced projects. The program being completed by Klohn Crippen Berger includes: - A baseline environmental assessment - A socio-economic sensitivity analysis - A geotechnical analysis to determine the stability of pit walls and underground workings Cross-cutting visible gold veinlets are prominent in both the 17/ODM and 433 Zones and play an important role in determining the overall economics of the earlier, broadly disseminated mineralization. In an effort to gain more information on the distribution and contribution of these high-grade gold veinlets and to assist with the RMR study mentioned above, the Company has engaged the services of Digital Geosciences Limited to conduct a borehole optical and acoustic televiewer survey of approximately 12 historical drill holes piercing the resource area. Diamond Drilling Update (2008-2009) During the last quarter (Q4) of 2008, the Company completed 18 holes totalling 8,400 metres. Nine of the holes were part of an infill drilling program in parts of the ODM and 433 Zones to refine the near-surface gold resources. The other nine holes were designed to test neighbouring parts of the 600 ha gold-bearing caldera structure outside of the initial resource estimate. Results for all of these holes are expected early in 2009. On November 20, 2008, to address the very unpredictable business conditions associated with the rapidly developing global economic turmoil, the Company reduced the number of drill rigs operating in Richardson Township from four to two. Drilling was shut down for the holiday period on December 17 and will resume in mid-January, 2009, focusing on the western extension of the Cap, 17/ODM, HS and 433 gold trends beyond the resource area where a number of high-priority gold targets have been delineated recently by reverse circulation drilling. This area is difficult to drill test during the summer months due to swampy conditions; therefore the Company will reactivate one of the two idle drill rigs for eight to ten weeks to take advantage of the freezing conditions. Simultaneously, a drainage program is being implemented to facilitate year-round drilling in the swampy area. One of the three active rigs will continue to move the inferred gold resources of the 433 and 17/ODM zones into the indicated category by drilling at tighter centres. Nelson W. Baker, P.Eng. is the Qualified Person for the Rainy River Project and the person responsible for the contents of this news release. The work program at Rainy River is being managed by Project Manager, Wally Rayner, P.Geo., also a Qualified Person within the meaning of NI43-101. C.J. Baker, M.Sc., the Company's regional exploration manager, is responsible for all aspects of the work performed in the Off Lake area, 23 km northeast of the gold-bearing Richardson caldera structure. About Rainy River Resources Ltd. Rainy River Resources is a Canadian precious metals exploration company whose key asset is the Rainy River Project. It hosts one of the largest undeveloped gold resources within one of the largest under-explored gold footprints in Canada. With $27 million in its treasury, the Company is well funded to conduct a year-round resource expansion drilling program and aggressive regional drill testing of high-priority gold targets generated from a systematic regional exploration program. The Company's property is located in western 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 in Canada. 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. Nelson W. Baker, President |
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