Rainy Mountain Reports Initial Exploration Program Results for Brunswick Property
West Vancouver, British Columbia – December 2, 2016 – Rainy Mountain Royalty Corp. (the “Company” or “Rainy Mountain”) is pleased to report initial findings from its recently completed exploration program on its optioned gold exploration property (the “Brunswick Property” or “Property”) located in the Timmins area of Ontario.
Overview of Exploration Program
The Brunswick Property covers a six mile long section of the Ridout Fault Shear Zone, which is an extension of the Larder Lake Break (fault zone), as associated with the Kirkland Lake and Larder Lake Gold Camps (the Kirkland Lake Gold Camp is 125 km northeast of the Property and the Larder Lake Gold Camp is 167 km northeast of the Property).
The recently completed Induced Polarization Resistivity Survey (“IP Survey”) on the Brunswick Property has identified four other parallel shear zones in the mafic volcanics along the north side of the Ridout Fault Shear Zone that are characterized by iron carbonate-sericite alteration with sulphides. The Ridout Shear system can be traced westward through the Chester-Cote Lake area where a gold deposit (the Chester Mine project) is being developed by IAMGOLD Corporation, then continues on to the Jerome Mine and then to Goldcorp Inc.’s Borden discovery near Chapleau. The parallel shears in the basalts on the Brunswick Property are similar to the gold setting in the Borden discovery and are parallel to the Timiskaming sediments and a major shear zone.
Exploration Program Details
As part of its recent exploration program, Rainy Mountain completed a deep penetrating IP Survey consisting of 13 two (2) km long lines across a selected portion of the Brunswick Property which outlined 4 major shear structures containing iron carbonate (ankerite) and sericite with sulphides. The Company believes that these structures and alteration assemblages are associated with gold mineralization on the Property and in the Porcupine (Timmins) Camp. A special array was used for this IP Survey which allowed for direct detection to a depth of 250m. A detailed mapping and prospecting program was also carried out in coordination with the IP Survey which indicated a number of exposures of iron carbonate, sheared volcanics with quartz and sericite with sulphides. These exposures coincided with the resistivity low that was traced across the complete (1.3 km) grid. The resistivity data outlined a specific shear structure 100m south of the gold showing previously sampled in May 2016 by Mike Tremblay, the prospector that optioned the Property to the Company. As indicated in the Company’s news release dated November 21, 2016, the gold assays from grab samples taken in May 2016 by Tremblay from the showing area assayed 32.9 grams Au (gold), 3.77 grams Au, 3.13 grams Au and 2.82 grams Au. Based on the analysis completed to date, Robert Middleton, P.Eng., believes that the iron carbonate shear structure hosting the gold appears to be connected to the major shear 100m to the south of the gold showings sampled by Tremblay. A deep seated IP anomaly was also outlined within this major shear, reflecting a concentration of sulphides at a depth of 125m, and was traced as a series of pods for a length of 1300m. Other moderate IP anomalies occur along the north side of the Ridout Fault Shear Zone which are considered to be important targets.
Additional grids are being planned for an IP Survey to cover extensions of these structures (2.6 km to the east and 4.8 km to the west of the present grid) and to cover other carbonate zones and showings along strike.
A drilling program for the gold showings and the strong IP anomalies is being planned for early 2017.
The Brunswick Property is accessible year round by bush road connecting to Highway 560 that links to the west with Highway 144 and then north to Timmins (via Highway 101).
This news release has been reviewed and approved by Robert Middleton, P.Eng., who is acting as the Company’s Qualified Person for the Brunswick 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, President & CEO
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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.