News Release No. 12-05
Rainy Mountain Provides Drilling Results for its Eva Kitto Property
West Vancouver, British Columbia – July 10, 2012 – Rainy Mountain Royalty Corp. (the “Company” or “Rainy Mountain”) wishes to report the results from its recently completed exploration and core drilling program on its Eva Kitto Property. The Eva Kitta Property is a "PGE" (Platinum Group Elements) exploration project and is located near the town of Beardmore, Ontario and approximately 190 kilometres northeast of Thunder Bay, Ontario. The Property is jointly owned (50/50) by Rainy Mountain and International Bethlehem Mining Corp. (“International Bethlehem” – TSX-V: IBC).
Rainy Mountain’s recent exploration was a follow up core drill program based on the exploration and drilling previously completed on the Property by International Bethlehem in 2008 and 2010. Accordingly, Rainy Mountain’s Drill Hole EK-12-01 was drilled to explore for the first time a negative magnetic anomaly for potential Ni-Cu-PGE (nickel, copper, platinum group elements) "Noril’sk-type" mineralization, as previously observed by International Bethlehem. This large negative magnetic anomaly lies at the centre of a northern inward dipping ring dike phase of the gabbroic-ultramafic layered “Kitto Intrusion”. The Company believes that the magnetic anomaly potentially represents Noril’sk-type basal massive mineralization, or possibly a feeder (bottom of the funnel) to the northern ring dike portion of the intrusion.
As well, Drill Hole EK-12-01 was the first drill hole to explore the northernmost (and thickest) portion of the intrusion. The hole was drilled to a depth of 405 metres (intersecting 377 metres of the Kitto Intrusion below 28 metres of cover rocks) and did not reach the basement contact or basal target. As a result, the magnetic anomaly remains unexplained and merits further exploration and drilling.
Typically, the Noril’sk-type genetic model requires a sulphur source and Rainy Mountain observed that Drill Hole EK-12-01 was successful in intercepting veiny, serpentinized, magnetite and pyrrhotite ingestions possibly remobilized from an iron formation contaminant. Additionally, nearby (on surface) there is coincidental evidence of magnetite and pyrite suggestive of iron formation.
In view of the significant thickness of the intrusion encountered and the limited initial budget for the drilling program, Drill Hole EK-12-01 was discontinued at a depth of 405 metres. The Company intends to follow up on further drilling to extend Drill Hole EK-12-01 to the basement in order to obtain a more complete understanding of the magnetic anomaly.
J. Garry Clark, P.Geo., is acting as the Company's Qualified Person for the Eva Kitto Property project in accordance with regulations under NI 43-101.
For further information, contact Mr. Clive Shallow, Shareholder Communications at 604-922-2030, or visit the Company’s website at www.rmroyalty.com
Rainy Mountain Royalty Corp.
“Douglas L. Mason”
Douglas L. Mason, Chief Executive Officer
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 or accuracy of this release.
This news release includes certain statements that may be deemed “forward-looking statements” within the meaning of applicable securities legislation. All statements, other than statements of historical facts, that address such matters as future exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the reasonable control of the Company. Such statements are not guarantees of future performance and actual results or developments may differ materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.