TORONTO, Feb. 11, 2013 /CNW/ - Rainy River Resources Ltd. ("Rainy River" or the "Company" (RR.TSX)) is pleased to provide an update on its planned activities for 2013.
The feasibility study and permitting process respecting the Rainy River Gold Project (the "RRGP") are progressing according to schedule. Exploration drilling re-commenced in mid-January with the intent to add to the RRGP's existing gold resource of 6.2 million and 2.3 million ounces in the Measured & Indicated and Inferred categories, respectively.
The Company is well funded to complete its 2013 activities, with approximately $102 million in cash and equivalents as of December 31, 2012.
Rainy River plans approximately 75,000 metres of drilling in 2013, with a budget allocation of approximately $18 million. Four diamond drill rigs were mobilized at the RRGP in January. Three of the rigs are working to expand known mineralization as well as conduct infill drilling at the newly discovered Intrepid Zone. With 51 drill holes completed to date, Intrepid now has a 335-metre strike length and measures 450 metres down dip. The Company aims to gather enough drill information to form the first mineral resource on Intrepid by the middle of this year.
The fourth rig is working at the BP Zone. Drill results from the Company's 2013 program will be released as they become available.
Work continues on the RRGP feasibility study, which is targeted for release during the first half of 2013. In August of 2012, the Company released an Updated Preliminary Economic Assessment, which outlined a robust project producing 308,000 ounces of gold and 478,000 ounces of silver annually over the first 10 years, with an IRR of 21% and NPV of $846 million, at $1,250 per ounce gold and $25 per ounce silver price assumptions. The feasibility study will incorporate the latest gold and silver resource estimate, which was released in October 2012.
Summary of 2013 Plans
|1H|| Feasibility Study
Continue exploration at Intrepid Zone
Continue exploration along prominent magnetic low trend hosting the majority of gold mineralization
Submission of Environmental Assessment report
|2H|| Detailed engineering
Intrepid Zone Resource Statement
Secure long lead time items
Rainy River will be presenting at the following events:
- NBF Conference in London, UK: Wednesday, February 13 at 9:25 a.m. local time.
- BMO Conference in Hollywood, Florida: Wednesday, February 27 at 9:00 a.m. local time.
- PDAC 2013 Corporate Presentation in Toronto: Tuesday, March 5 at 4:00 p.m. local time, Metro Toronto Convention Centre, South Building, Room 801B.
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 1000 g 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 December 31, 2012, the Company had approximately $102 million in cash and cash equivalents and short-term investments, and remains well funded for its ongoing activities, including 1) completion of a feasibility level study on the RRGP; 2) continuing to grow the existing resource through exploration; 3) conducting a condemnation program in areas identified for potential mine facilities; and 4) continuing regional exploration. RRGP is very well located in northwestern Ontario. 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. 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 and 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.
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SOURCE: Rainy River Resources
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Director, Investor Relations