Rainy River Engages BBA Inc. and AMEC to Complete Preliminary Economic Assessment
May 13 2011 - 8:32AM
Marketwired
Rainy River Resources Ltd. (TSX VENTURE: RR) (the "Company" or
"Rainy") is pleased to provide an update on its technical programs
at the Rainy River Gold Project (RRGP) in Northwest Ontario.
Rainy River is currently in the process of updating the mineral
resource statement for the project. SRK Consulting Canada will be
adding 50 drill holes to the existing resource model (see press
release dated Feb 24, 2011). The updated model will form the basis
for the Preliminary Economic Assessment ("PEA"). The Company also
announces that it has engaged the services of BBA Inc. ("BBA") and
AMEC (Earth & Environmental) ("AMEC") to complete a Preliminary
Economic Assessment for the RRGP and to provide ongoing technical
support for the Company's engineering and environmental
programs.
BBA is a privately owned engineering firm based in Montreal, QC.
The firm has over 600 employees and specializes in mining and
energy projects. BBA led or is leading the feasibility and design
of recent Canadian gold projects including the Detour Gold project,
Osisko's Canadian Malartic mine, and Aurizon Mines' Joanna project.
BBA will lead the PEA at Rainy River and will direct the Company's
metallurgical test programs and site plan engineering.
BBA's scope of work will include the determination of capital
and operating costs for an initial open-pit mine and possible
phased expansions. An evaluation of future underground mine
production at the RRGP will also be included.
Once the PEA is completed in Q3 2011, Rainy River will develop
an optimal design for an Advanced Exploration Program that was
initiated in late 2010. The Advanced Exploration Program will be
designed to provide access to conduct underground exploration and,
ultimately, development access to the deep mineralization in the
ODM, 433 and BP Zones, and the newly-discovered 17 East Zone.
AMEC's Earth & Environmental business is part of the global
AMEC organization with 22,000 employees operating in nearly 40
countries worldwide. AMEC has extensive mining experience providing
environmental, permitting, geotechnical and engineering services to
a number of major new mining projects in northern Ontario. AMEC
will support the PEA study and lead the Company's environmental and
geotechnical assessments.
The exploration program at the RRGP for calendar 2011 includes
170,000metres of diamond drilling, with 50,000metres of drilling
completed to date. The drill program for the remainder of 2011 will
be allocated to infill definition and deep drilling (70%) and
district exploration (30%). At the moment, eight drill rigs are on
site, with another two drills expected to be mobilized by month
end.
Raymond Threlkeld, President and CEO adds, "We are very pleased
to have engaged BBA and AMEC to complete the Preliminary Economic
Assessment and support the technical programs for the Rainy River
Gold Project. Their experience with recent large scale Canadian
gold projects will be very valuable as we continue to advance the
project towards feasibility and a production decision."
Qualified persons
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. Garett Macdonald, P.Eng., Vice President Operations and
Kerry Sparkes, P.Geo. are the persons responsible for the content
of this news release. The Company continues to implement a rigorous
QA/QC program 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 1,000g
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. implement independent QA/QC protocols
that include the insertion of certified blanks and standards as
part of their routine analysis.
About Rainy River Resources Ltd.
Rainy River Resources is a Canadian precious metals exploration
company whose key asset is the Rainy River Gold Project. With over
CAN$130million in cash and short term investments, the Company is
well funded to conduct a dual-focused drilling program consisting
of:1) definition diamond drilling of the main gold resources in
preparation for scoping and pre-feasibility studies; and 2)
selective diamond drill testing of high-priority gold targets
defined primarily by RC drilling within the large gold system
centred in Richardson Township. The Company's property is extremely
well located in the southwestern corner of northern 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 and development. The Company is also working to
advance the early-stage discoveries at its TPK Joint Venture
Property, also in Ontario, where it can earn a 51% interest in the
property from Northern Superior Resources Inc. 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 & CEO
This release includes certain statements that may be deemed to
be "forward-looking statements". All statements in this release,
other than statements of historical fact, that address events or
developments that the Company expects to occur, are forward looking
statements. Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by
the words "expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
that events or conditions "will", "would", "may", "could" or
"should" occur. Although the Company 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 may differ materially from
those in forward looking statements. Factors that could cause the
actual results to differ materially from those in forward-looking
statements include gold prices, results of exploration and
development activities, regulatory changes, defects in title,
availability of materials and equipment, timeliness of government
approvals, continued availability of capital and financing and
general economic, market or business conditions. The Company
cautions that the foregoing list of important factors is not
exhaustive. Investors and others who base themselves on the
Company's forward looking statements should carefully consider the
above factors as well as the uncertainties they represent and the
risk they entail. The Company believes that the expectations
reflected in those forward-looking statements are reasonable, but
no assurance can be given that these expectations will prove to be
correct. 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.
Contacts: Rainy River Resources Ltd. Nicholas Nikolakakis Vice
President and Chief Financial Officer (416) 645-7281
nnikolakakis@rainyriverresources.com
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