A spectacular intersect of 1,335 grams gold per tonne and 76.7 grams silver over 1.5 metres, just 42 metres below surface, sent shares of Rainy River Resources (RR-V) up 29¢ or 2.97% to $10.05 per share yesterday, and the company’s share price continues to climb today.
The intersect came from hole NR11719, which was drilled in the Western Area, a new exploration area about 800 metres to the northwest of the Beaver Pond zone at the company’s Rainy River gold project in northwestern Ontario.
The company is drilling 170,000 metres this year at the project and released results from eleven drill holes on July 6.
Other highlights include hole 11711, which returned 4.4 grams gold over 10.5 metres, and hole 11731, which cut 3.9 grams gold over 22.5 metres.
The Western Area lies within a large magnetic low trend that hosts the Rainy River gold deposit and stretches over 10 km to the west. The first significant gold intersection in this new area (reported at the end of March) returned 7.1 grams gold and 23 grams silver over 9 metres in Hole 11648.
The advanced stage project, which Rainy River acquired from Nuinsco Resources (NWI-T) in June 2005, is about 5 km northwest of Fort Frances, 162 km south of Kenora, and 418 km west of Thunder Bay. The property has year-round access and is 21 km north of a railway.
The junior plans to complete a scoping study before the end of the third quarter of this year, and is also doing metallurgical testwork and environmental baseline and geotechnical studies.
In the meantime, recent highlights from the first results of Rainy River’s infill program include drill hole KCBL101, which returned 1.2 grams gold and 1.8 grams silver over 93 metres in the ODM zone. NR11718 cut 1.8 grams gold over 39 metres, including 4.2 grams gold over 13 metres in the 17 East Zone. Hole NR11729 returned 1 gram gold over 11 metres, while hole NR11724 intersected 16.5 grams gold and 16.9 grams silver over 1.5 metres.
Rainy River is also continuing exploration drilling to the north of the main deposit, where drill hole NR11692 cut 7.9 grams gold over 1.5 metres, hole NR11693 returned 34.2 grams gold over 1.5 metres, and hole NR11694 intersected 5.3 grams gold over 1.5 metres.
At presstime in Toronto Rainy River was trading at $10.25 per share within a 52-week range of $5.66 (July 16 2010) and $13.50 (Feb. 11 2011).
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