News Releases: No. 10-11
Rainy Mountain Completes Option of Olsen Gold Property
West Vancouver, British Columbia – May 11, 2010 – Rainy Mountain Royalty Corp. (the “Company” or “Rainy Mountain”) is pleased to announce that further to its news release of March 8, 2010, Black Panther Mining Corp. (“Black Panther”) has now received TSX Venture Exchange acceptance of its option agreement with Rainy Mountain pursuant to which Black Panther can acquire up to a 50% interest in the Company’s 234 claim unit gold property (the “Olsen Twp. Property”) located approximately 60 km north of Sault Ste Marie, Ontario. Black Panther and Rainy Mountain have certain common directors.
Black Panther has approved an exploration program for the Olsen Twp. Property. The first phase of exploration program will consist of prospecting, geological mapping and line cutting to further trace the favourable gold bearing carbonate alteration zones. The first phase will be followed up with magnetic and induced polarization (IP) survey on a 50-80 km grid designed to identify the width and most pyritic sections within the 10 km length of the prospective shear zones. Further mapping of the Property is planned to define the extent of porphyries and their relationship to the gold occurrences. At least three gold occurrences have been historically identified on the Olsen Twp. Property and the discovery of a further gold occurrence was recently made during Black Panther’s initial property inspection. A further program of trenching, followed up by diamond drilling, is already being considered by Black Panther in light of the prolific extent of the carbonate (ankerite) alteration. The Property is road accessible via Highway 17 and a powerline across the Property. The geology of the Olsen Twp. Property resembles the Timmins-Porcupine Camp style gold deposits and is on the same section of the Abitibi greenstone belt.
Black Panther has approved an initial exploration budget of $250,000 for the phase one program, which program will commence immediately and is expected to be completed during the next 3 months.
Under the Option Agreement with Rainy Mountain, Black Panther must incur $250,000 in exploration expenses by March 2, 2011 to earn a 30% interest in the Property. As well, Black Panther has the right to earn a 50% interest in the Olsen Twp. Property by incurring an additional $250,000 in exploration expenses by March 2, 2012.
This news release has been reviewed and approved by Mr. Robert Middleton, P. Eng., and Geophysicist, who is acting as the Qualified Person for this project in accordance with regulations under NI 43-101.
For further information, contact Mr. Clive Shallow, investor communications, at 604-922-2030 or visit the Company’s website at www.rmroyalty.com (an updated Rainy Mountain Royalty Corp. website is currently being developed).
Rainy Mountain Royalty Corp.
"Ronald A. Coombes"
Ronald A. Coombes, President & CEO