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February 28, 2008
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Rainy River Announces Initial Resource Estimate for the 17/ODM, 433 and Cap
Zones in Richardson Township, Northwestern Ontario
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2008) - Rainy River Resources Ltd. (TSX VENTURE:RR) is pleased to announce completion of the first NI 43-101 compliant resource estimate for the Company's wholly owned Rainy River Property, located in Richardson Township, approximately 80 kilometres south of Kenora, Ontario. The estimate was performed by Caracle Creek International Consulting Inc. (CCIC), an independent geological consulting firm based in Sudbury, Ontario. At a 0.5 g/t Au block cut-off, a total of 1,386,000 million ounces of contained gold and 2,896,000 million ounces of contained silver has been defined in the indicated category, in addition to 2,233,000 million ounces of contained gold and 5,109,000 million ounces of contained silver in the inferred category.
The area of influence for the new resource estimate accounts for less than 7% of Rainy River's Richardson Township land holdings and encompasses the 17/ODM Zones, Beaver Pond Area, the 433 Zone and the CAP Zone. Validated Nuinsco drill holes as well Rainy River drilling up to and including drill hole NR-07-210 form the basis for this calculation.
Because of the similarity to comparable deposits currently in production, the broad, near-surface widths of the gold mineralization and the overall geometry of the five zones in relation to one another, the Company is pleased to report cut-off grades amenable to a bulk tonnage open-pit mining scenario:
0.3 g Au/t block cut-off:
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Category Tonnes g Au/t Contained oz. Au g Ag/t Contained oz. Ag
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Indicated 37,761,000 1.18 1,436,000 2.60 3,159,000
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Inferred 79,654,000 0.94 2,400,000 2.31 5,923,000
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0.5 g Au/t block cut-off:
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Category Tonnes g Au/t Contained oz. Au g Ag/t Contained oz. Ag
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Indicated 34,238,000 1.26 1,386,000 2.63 2,896,000
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Inferred 67,564,000 1.03 2,233,000 2.35 5,109,000
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0.7 g Au/t block cut-off:
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Category Tonnes g Au/t Contained oz. Au g Ag/t Contained oz. Ag
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Indicated 24,959,000 1.50 1,206,000 2.63 2,106,000
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Inferred 44,391,000 1.25 1,787,000 2.28 3,257,000
-------------------------------------------------------------------------- The mineral resources in this press release conform to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council December 11, 2005. The mineral resources reported herein are not mineral reserves, and, as such, do not demonstrate economic viability.
Technical notes for the estimate:
- The database for the estimate was comprised of rigorously validated Nuinsco and Rainy River drilling totalling 145,630 metres; bulk density values for the 17/ODM, 433 and CAP mineralized rock averaged 2800 kg/m3;
- An Indicator kriging methodology was employed to model zones of mineralization using block cell dimensions of 20 by 20 by 5 metres rotated into the axis of the mineralization;
- Grade interpolation was completed using the Ordinary Kriging method, 4 metre down hole composites cut to a maximum of 50 g Au/t, and search volumes determined by variogram studies; and,
- The Indicated category was assigned to 17/ODM zone blocks estimated with more than 4 sample composites within 35 by 65 by 15 metres from at least 2 drill holes, a Kriging variance of less than 0.25, and a position not more than -360 metres below surface.
Rainy River's President and CEO, Nelson W. Baker, comments that, "1.4 million ounces of indicated and 2.2 million ounces of inferred gold mineralization is truly an outstanding achievement for our initial resources estimate. In only three years we have increased the contained ounces an impressive 600% over Nuinsco's resource estimate and based upon expenditures to date, our exploration costs rank as one of the lowest in Canada at only $8.00 per contained ounce of gold."
He further adds that, "Rainy River Resources continues to demonstrate the significant gold potential of the mineralized system in Richardson Township as is evident from our recent high grade gold intersections reported from the 433 and CAP zones. We are confident that we will continue to expand the resource base as we release results from our 42,000 metre program planned for 2008."
Since purchasing the property in 2005, the Company has drilled 218 holes, of which only four shallow holes totalling 710m do not fall within the resource estimate's area of influence. Rainy River's principal focus since acquiring the project has been drilling the resource and, in 2008, the Company plans to systematically assess its extensive land position using the newly acquired geological knowledge.
Iain Kelso, P. Geol., operations manager for CCIC, is the independent Qualified Person in accordance with NI 43-101 guidelines and has reviewed and approved the technical information presented in this news release. Mr. Kelso, who is independent of Rainy River, is the author of the NI 43-101 compliant Technical Report on the Mineral Resource Estimate for the 17/ODM, 433 and CAP deposits, to be filed within 45 days of this news release.
Rainy River's exploration program is being managed by Project Manager, Wally Rayner, P. Geo., a Qualified Person within the meaning of NI 43-101. Nelson W. Baker, P.Eng., is the Qualified Person for the project and the person responsible for the contents of this news release. The Company has implemented a rigorous QA/QC program to ensure best practices in sampling and analysis of drill core. The detailed procedures of the QA/QC program are detailed in Rainy River's website at www.rainyriverresources.com.
About Rainy River Resources Ltd.
Rainy River is a Canadian precious metals exploration company whose key asset is the Rainy River gold project. With a $39 million treasury, the Company is well funded to conduct an aggressive year round resource definition drilling program and regional drill testing of priority targets. Rainy River is extremely well located in western Ontario where it is accessed by a network of roads, and is close to hydro-electric infrastructure. Ontario is 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 that embraces mineral development.
Nelson W. Baker, President
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. 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.
The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.
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