| Update from the Field
 
| | Mon Jan 12, 2009
RAINY RIVER RESOURCES PLANS DRILL TESTING OF KEY NEW GOLD TARGETS AND FURTHER RESOURCE DEFINITION AND ECONOMIC STUDIES IN 2009, MAINTAINS SOLID CASH POSITION
Publisher: Stockwatch
Author: Mr. Nelson Baker, President of Rainy River Resources reports
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| | Rainy River Resources Ltd., (TSX-V: RR) with $27-million in the treasury, 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 first quarter 2009
Since the company's initial NI 43-101 resource released in Stockwatch Feb. 28, 2008, a total of 107 drill holes totalling 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 first quarter 2009. SRK will then proceed with a preliminary economic assessment (PEA) scheduled for completion by fourth quarter 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.
Crosscutting 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 to 2009)
During the last quarter (fourth quarter) 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-hectare gold-bearing caldera structure outside of the initial resource estimate. Results for all of these holes are expected early in 2009.
On Nov. 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 Dec. 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 10 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, PEng, 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, PGeo, also a qualified person within the meaning of NI 43-101. C.J. Baker, MSc, the company's regional exploration manager, is responsible for all aspects of the work performed in the Off Lake area, 23 kilometres northeast of the gold-bearing Richardson caldera structure. |
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| | You can view the Previous Update from the Field item: Wed May 27, 2009, RAINY RIVER RECEIVES GOLD RESOURCE UPDATE: INDICATED RESOURCES INCREASE BY 61 PERCENT IN ONE YEAR
You can view the Next Update from the Field item: Tue Jul 29, 2008, Rainy River extends 17 zone east towards Bayfield's Burns Block, 10.5 m of 2.83 g/t Au
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