West Vancouver, British Columbia–(Newsfile Corp. – January 10, 2018) – Rainy Mountain Royalty Corp. (TSXV: RMO) (the “Company” or “Rainy Mountain”) is pleased to announce that it has commenced drilling on the east grid of the Company’s optioned gold exploration property (“Brunswick Property” or “Property”) located 140 km south of Timmins, Ontario. The Company intends to proceed with a proposed 1500m drill program (see news release dated October 12, 2017 for details on the proposed drilling program) to follow up on the August 2017 trenching results and to test the extensions of the original gold showing (see news release dated September 12, 2017 for trenching results). These new targets on the extension have been exposed by trenching and induced polarization (“IP”) surveys. Other parallel shear zones will also be tested. Step out drill holes (along strike to Drill Hole BE17-04) will be drilled to trace anomalous gold (Au) and arsenic (As) values that are potential indicators of a nearby gold zone (see news release dated July 12, 2017).
On the west grid of the Property, five drill holes have been selected to test IP anomalies adjacent to gold values obtained from prospecting surface grab samples that assayed 6.6 gm gold (Au), 4.05 gm gold (Au) and 2.56 gm gold (Au) (see news release dated August 28, 2017 for trenching and prospecting details).
The geophysical grid will also be expanded to cover the remaining unsurveyed parts of the east and west grids of the Property in search of additional drill targets. This is expected to add another 5.1 km of strike length coverage to the Property.
In connection with the expenditures on the current drill program, the Company anticipates receiving a Junior Exploration Assistance Program Grant (“JEAP Grant”) of up to 33% of the exploration expenditures (to a cap of $300,000 in expenditures) by the Ontario Prospectors Association. To qualify for the JEAP Grant, the Company’s exploration expenditures must be completed by March 30, 2018.
Based on its exploration results to date, the Company believes that the Brunswick Property covers a full 6 miles (9.6 km) of a set of shear zones that parallel the Ridout Fault system, which is interpreted to be the continuation of the Larder Lake Break. Five shears have been defined by IP-Resistivity surveys and initial drilling has tested each shear with just one hole to confirm that these anomalies were in fact sericite-iron carbonate (ankerite) altered shears with quartz-pyrite. The Brunswick Property is located 140 km south of Timmins, Ontario and is road accessible from Highway 560 that links Highway 144 to Shiningtree and Kirkland Lake.
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 gold exploration 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 the Company’s proposed drill program and planned exploration expenditures on the Brunswick Property, as well 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.