News Release No. 10-18
Copper, Silver, Gold Mineralization Expanded on RM Zone Marshall Lake Property, Ontario
West Vancouver, British Columbia – December 1, 2010 – Rainy Mountain Royalty Corp. (the “Company” or “Rainy Mountain”) is pleased to report that its joint venture partner, White Tiger Mining Corp. (“White Tiger”), has announced that recent additional assays from the Marshall Lake Property have confirmed that the “RM Zone” is open to depth, as well as along strike, in both the eastern and western extensions of the Zone.
White Tiger (TSX-V:WTC) has the option to earn a 50% interest in the Marshall Lake Property project from Rainy Mountain and Marshall Lake Mining PLC (“MLM”) by spending $4 million in exploration expenditures over 5 years and issuing 2 million shares over 4 years to Rainy Mountain. As well, White Tiger has the additional option to increase its interest to 75% by incurring such additional expenditures as are necessary to take the project to bankable feasibility stage. The Marshall Lake Property is located 30 km west of Nakina, Ontario. Access is by all weather gravel road from Hwy 11 and the main CNR rail line is within 22 km to the south of the Property.
White Tiger has reported in its news release of December 1, 2010 that its initial Phase 1 drill program of approximately 2,400 metres has successfully expanded a new discovery (the “RM Zone”) for a strike length of 125 metres while confirming the potential to increase and expand the deposit to the east, west and down dip to depth. White Tiger has also indicated that a more significant Phase 2 drill program is currently being planned for early 2011. This Phase 2 program will focus on expanding the RM Zone in all directions, developing the RM Zone into a resource estimate and exploring the high potential additional targets and zones such as those discovered in the 2006-2008 drill programs completed by Rainy Mountain and Marshall Lake Mining PLC.
In White Tiger’s news release of today, Ronald Coombes, President and CEO of White Tiger said that “We are extremely pleased to have been able to define such a significant zone of mineralization in our initial Phase 1 drill program. The fact that the RM Zone is still open in all directions is very encouraging and we are excited at the potential of expanding this Zone and developing a resource estimate during our Phase 2 drill program in the upcoming months".
The following is a summary of White Tiger’s drilling program and assay results:
Drill Hole Summary
Drill hole GAZN-10-14; a 25 metre southern step out from GAZN-10-13 and 50 metre southern step out from GAZN-08-08, has extended the mineralization to depth on the east side of the RM Zone. This hole has confirmed the presence of mineralization to the east over a significant width and will be followed up in the Phase 2 program in an effort to further extend the RM Zone strike length to the east. GAZN-10-14 intersected a wide zone of mineralization assaying 0.41% Cu, 2.46g/t Ag and 0.10g/t Au over 56 metres, including a higher grade intersection of 0.71% Cu, 4.35g/t Ag and 0.19g/t Au over 19 metres.
Drill hole GAZN-10-16; a 50 metre southern step out from GAZN-10-12 and 25 metre western step-out from GAZN-10-15, has traced the high grade zone further west of GAZN-10-15 and has provided continuity between the high grade zone and the mineralization encountered in the most western holes to date (GAZN-10-17 and GAZN-10-19). GAZN-10-16 intersected 12 metres of 0.44% Cu. 2.39g/t Ag and 0.04g/t Au, including 0.97%Cu, 5.60g/t Ag and 0.10g/t Au over 3 metres.
Drill hole GAZN-10-18; a 25 metre southern step out from GAZN-10-15, has extended the mineralization to depth and will be followed up in the Phase 2 program in an effort to further extend the RM Zone to depth. GAZN-10-18 intersected a high grade zone of mineralization assaying 0.86%Cu, 4.78g/t Ag and 0.09g/t Au over 10 metres including 1.27% Cu, 6.96g/t Ag and 0.11g/t Au over 6.13 metres.
Drill hole GAZN-10-19; a 25 metre northern step out from GAZN-10-17, extends the mineralization to surface above hole GAZN-10-17 and confirms the continued western extension of the RM Zone. The Phase 2 drill program will follow up on these western step outs and explore whether the RM Zone continues for another 200 metres in strike length west towards the Lease Zone. Hole GAZN-10-19 intersected 0.39%Cu, 1.99g/t Ag and 0.07g/t Au over 28 metres close to surface, including 0.49% Cu, 2.49g/t Ag and 0.08g/t Au over 19 metre.
The assay results for drill holes GAZN-10-14, GAZN-10-16, GAZN-10-18 and GAZN-10-19 are as follows:
|Hole Number||From (metres)||To (metres)||Width (metres)||Cu (%)||Ag (g/tonne)||Au (g/tonne)|
As reported by White Tiger, drill core was split at a secure facility in Thunder Bay, Ontario and sample preparation was done by ALS Chemex in Thunder Bay, Ontario. Pulp samples (<75 microns) were then sent by secure courier to ALS Chemex in North Vancouver, British Columbia and analyzed by ICP spectrometer("ICP") using a 0.5g representative pulp dissolved in Aqua Regia (3 acid) digestion. All samples grading over 1.0% Cu were re-assayed with ore grade ICP and Aqua Regia digestion. Gold analysis was done by fire assay with AA ("Atomic Absorption") finish.
This news release has been reviewed and approved by Robert Middleton, P.Eng., who is acting as Qualified Person for Rainy Mountain and White Tiger for the Marshall Lake Property 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 atwww.rmroyalty.com.
Rainy Mountain Royalty Corp.
“Douglas L. Mason”
Douglas L. Mason, 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.