Rainy River Resources Announces 5.72 Million Ounces of Gold in Measured and Indicated Resources
Monday, Feb 27, 2012Rainy River Resources Ltd. ("Rainy River" or the "Company") (TSX:RR) is pleased to announce an updated mineral resource statement for the Rainy River Gold Project ("RRGP") in northwestern Ontario. Mineral resources were estimated by SRK Consulting (Canada) Inc. ("SRK") and are reported in accordance with Canadian Securities Administrators National Instrument 43-101. The consolidated mineral resource statement for the RRGP is tabulated in Table 1. Resources are reported at the same elevation as the PEA study (approximately 500 m below surface) and the same cut-off grades as those reported in the June, 2011 mineral resource statement.
Raymond Threlkeld, President & CEO of Rainy River Resources Ltd., commented: "We are very pleased to announce the results of our latest mineral resource update for the Rainy River Gold Project following one of the largest exploration programs in Canada. The new mineral resource statement incorporates 394 new core holes (170,000 metres) in 2011, for a total resource base of 1,279 diamond drill holes (578,261 metres). The results demonstrate the success of our intensive 2011 program in improving the quantity and quality of our resource database, de-risking the project for development, and identifying new areas for growth."
"Combined open pit and underground mineral resources in the Measured & Indicated ("M&I") categories total 5.72 million ounces of gold and 12.01 million ounces of silver, while combined Inferred resources total 2.25 million ounces of gold and 6.77 million ounces of silver. Relative to the June, 2011 mineral resource statement, M&I mineral resources increased by 1.31 million ounces of gold and 2.89 million ounces of silver, representing increases of 30% and 32%, respectively. Inferred mineral resources are comparable to the June, 2011 mineral resource statement, and provide a basis for future exploration targets and conversion to higher confidence ounces."
"A key focus of the 2011 drill program was to convert inferred mineral resources into Measured or Indicated within the conceptual pit shells. We now see a significant improvement in open pit Measured & Indicated mineral resources, with 136 million tonnes grading 1.12 g/t gold and 2.33 g/t silver, for 4.92 million ounces gold and 10.16 million ounces silver reported. As previous Inferred ounces moved to the Measured and Indicated category, grades improved, showing the value and effectiveness of the infill drilling."
"The underground portion of the Rainy River Gold Project has now expanded to 501,000 ounces of gold in the Measured and Indicated categories, for an increase of 72% compared to June, 2011 estimate, and this resource remains open at depth."
"Currently, 12 diamond drill rigs are active at the Rainy River Gold Project, with 150,000 metres of drilling planned for 2012, to complete the remaining infill program in the open pit and underground areas, to conduct condemnation drilling for site facilities, and to progress with regional exploration along a prospective 6 km-long trend. This resource update incorporates assay results and data received up to December 16, 2011. The next resource update is expected ahead of the commencement of our feasibility study, in mid-2012, and will incorporate new drill information from the first few months of 2012."