TORONTO, Oct. 18, 2012 /PRNewswire/ --Rainbow Resources Inc. (TSX VENTURE: RBW) ("Rainbow" or the "Company") is pleased to provide the following exploration update as it continues to advance its 13,000-hectare Big Strike Gold-Silver Project in the West Kootenays and its Jewel Ridge Property along the prolific Battle Mountain-Eureka Trend in Nevada.
- A 15-hole Phase 1 drill program has been completed at the International Silver Property and assays are pending;
- Big Strike Project drilling shifts this week to the Gold Viking Property, contiguous to the past producing Ottawa Mines (1.8 million ounces of silver at an average grade of 61.6 opt);
- Fresh historical data magnifies potential of Jewel Ridge Property in Nevada with drilling commencing shortly to follow up on previous near-surface intercept of 2.1 g/t Au over 39.6 metres.
International Silver Property
Rainbow has completed a 15-hole shallow drill program at its International Property near the historic silver mining community of Kaslo in southeast British Columbia, 140 km north of Nelson. Drilling consistently intersected the International vein system and core is being analyzed for silver, lead, zinc and gold mineralization. The Company is eagerly anticipating results within the next 2-3 weeks which, along with prospecting efforts in progress, will help guide the next stage of exploration at this previously undrilled 4,000-hectare property.
Drilling Shifts To Gold Viking, Sampling Assay Returns 10 g/t Au
A first-ever drill program begins this week at the Gold Viking Property adjacent to the Village of Slocan, 70 km north of Nelson. Permits for numerous sites have been received from the B.C. Ministry of Energy & Mines and are valid until November of next year.
Phase 1 drilling will focus on the central portion of the property where a prominent low resistivity feature (see map on Company web site) is coincident with a multi-element soil geochemical anomaly. This feature, 1,400 metres long and 320 metres wide, may represent a structural break that could have acted as a conduit for mineralizing hydrothermal fluids. A north-south trending mafic dike is exposed within this same corridor. Rainbow will be drilling to depths of approximately 200 metres.
Gold Viking is contiguous to Rainbow's Ottawa Property and the Ottawa Mines, a significant silver producer in the early 1900's (1.8 million oz. at an approximate average historical mined grade of 61.6 opt or 2,113 g/t Ag). Gold Viking, which has never been previously drilled, features numerous historical adits that traced mineralization in a north-south direction and yielded quantities of silver, gold and lead from mining of high-grade material in the early 1900's. The Gold Viking and Ottawa properties share many of the characteristics of a felsic-intrusion-associated silver-lead-zinc vein-type deposit.
While grab samples from adits in the central and southern portions of Gold Viking returned silver values ranging from 1.9 opt to 14.3 opt (66 g/t to 489 g/t) as reported by Rainbow March 15, 2012, a recent re-check of these samples has also yielded some significant gold assays including 3.0 g/t, 4.6 g/t and 10.0 g/t. A 1-metre channel sample from the upper adit on the south side of Gold Viking returned 1.5 g/t Au.Rainbow cautions that these samples, while encouraging, may not be representative of mineralization on the property.
Historical Data Suggests Potential For Large Mineralized System At Jewel Ridge As Drill Program Launches
Rainbow is pleased to announce that it is launching a Phase 1 reverse circulation drill program by the end of this month at the former producing Jewel Ridge Property along the prolific Battle Mountain-Eureka Trend in Nevada. Strategically located, Jewel Ridge is contiguous to Barrick Gold's Ruby Hill Mine to the north (127,000 ounces produced last year) while Timberline Resources' growing Lookout Mountain deposit is immediately to the south. Rainbow optioned Jewel Ridge in March of this year from Greencastle Resources Ltd. (VGN: TSX.V) and completed a successful surface exploration program immediately thereafter.
A reinterpretation of the geological potential of Jewel Ridge is beginning to emerge given current gold prices and after Moose Mountain Technical Services recently acquired vast amounts of historical data on the property including hundreds of drill holes (mostly very shallow) going back to the 1970's. A compilation of this historical information from Jewel Ridge has never been previously carried out and Rainbow looks forward to releasing more details as Moose Mountain continues its review. With this data, combined with results from upcoming drilling on a southern section of the property, Rainbow's geological and engineering teams will be aided immensely in their efforts to outline a potential deposit.
Based on an initial review of just some of the Jewel Ridge historical drill data, in addition to previous mining activities, the structural setting and style of mineralization, and the short program carried out in the second quarter, Moose Mountain is of the opinion that Jewel Ridge has strong potential to host a large mineralized system. Geochemical signatures at Jewel Ridge are also similar to those reported at both Ruby Hill and Lookout Mountain. A sediment hosted gold deposit and a carbonate replacement-type system (Au-Ag-Pb-Zn) are the exploration targets. Several past producing pits at Jewel Ridge are lined up on a primary mineralized structure that trends north for at least 3 km toward the Ruby Hill Mine. Oxidized zones, underground workings and trenching exist over a wide area.
Rainbow's Phase 1 program will focus on the past-producing and highly prospective Hamburg Pit area, 1,400 metres north of the former Windfall Mine which was Nevada's first heap-leach operation (1975). Rainbow's initial hole will be drilled from just north of the Hamburg Pit in the immediate vicinity of where Greencastle intersected 2.1 g/t Au over 39.6 metres, near-surface, in 2004.
Gold mineralization at the Hamburg Pit occurs within the Hamburg Dolomite and at the contact with the overlying Dunderberg Shale. Gold values are present throughout the Hamburg Dolomite which appears to be at least 200 metres thick. Northeast trending faults host higher-grade grade gold mineralization. The Hamburg-Dunderberg contact is a key feature of the Windfall Trend which produced an estimated 200,000 ounces of gold from several deposits that began with the Windfall Mine and trended north onto Jewel Ridge.
Recent drilling by Timberline Resources at its Lookout Mountain Project has intercepted high-grade mineralization below the existing historical pit at Lookout Mountain. Given previous drill data from the Hamburg Pit, and evidence of underground sampling of high grade zones near the pit, Rainbow believes this part of the Jewel Ridge Property is an ideal starting point for a drill program to depths of 200 metres (there has been very limited drilling below 100 metres) that could produce a significant discovery. Some historical intercepts at and immediately around the Hamburg Pit include the following (more will be released as additional data is reviewed):
Hamburg Pit Selected Historical Drill Data
Note: Holes N8423, M8422, N8414 were drilled by Homestake Mining in the 1980's. Holes HRC-13, HRC-11 and HRC-4 were drilled by Greencastle in 2004.
Historical exploration results referred to in this release may not be compliant with NI-43-101 standards, and the Company has not independently verified these results.
For further information: President David W. Johnston - (403) 701-2781.
Visit our website at www.RainbowResourcesInc.com
Rainbow's disclosure of a technical or scientific nature in this news release has been reviewed and approved by Mr. Robert Morris, P.Geo., of Moose Mountain Technical Services, who serves as a Qualified Person under the definition of National Instrument 43-101. Original samples for Gold Viking assay results were prepared by Loring Labs in Calgary. Pulp re-runs were completed by Acme Analytical Labs in Vancouver, testing for gold by wet digestion. Samples, 30g pulps, were digested in Aqua Regia, analyzed by ICP-Mass Spec. and tested for gold only.
About Rainbow Resources
Rainbow is a newly-listed Canadian based junior exploration company focused on building shareholder wealth through aggressive exploration in two favorable and proven mining jurisdictions - the West Kootenays in southeast British Columbia (silver, gold and flake graphite), and Nevada where Rainbow's Jewel Ridge Gold-Silver Project is in the heart of a major producing district. Rainbow's shares are listed for trading on the TSX Venture Exchange under the symbol RBW.V, and on the OTCQX International under the symbol RIINF. Rainbow has 41,627,719 common shares issued and outstanding.
Caution Regarding Forward-Looking Information
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, future work programs and objectives and expected results from such work programs. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks,(more)uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information and the risks identified in the Company's continuous disclosure record. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this news release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this news release.
SOURCE Rainbow Resources Inc.