West Vancouver, British Columbia–(Newsfile Corp. – March 1, 2018) – Further to the Company’s news release of January 10, 2018, Rainy Mountain Royalty Corp. (TSXV: RMO) (FSE: EK7N) (the “Company” or “Rainy Mountain”) is pleased to announce that it has completed its drill program on its optioned gold exploration property (the “Brunswick Property” or the “Property”) located approximately 140 km south of Timmins, Ontario. The drill program included 15 holes for a total length of 1419 m.
Assay of .440 gm gold (Au) over 1.0 m in drill hole BE18-02
Assay of .650 gm gold (Au) over 1.0 m in drill hole BE18-04
Assay of .132 gm gold (Au) over 1.0 m in drill hole BE18-06
Assay of .242 gm gold (Au) over 1.0 m in drill hole BE18-07
Assay of 1.59 gm gold (Au) over 1.0 m in drill hole BE18-08
As part of the drill program, three holes tested the extension of the original gold showing, 600m west, 300m west and 900m east of drill hole BE17-07 (see the Company’s news release of July 12, 2017). The original gold showing is located in a trench at 102+50N on line 49800E on the east grid of the Brunswick Property. A strong deformation zone was exposed in August 2017 west of the showing containing anomalous gold (Au) of .322 gm, and this anomalous section was hit by drill hole BE18-02 on line 49200E, and in drill hole BE18-06 on line 49500E. A strong zone of albitization was cut by hole BE18-04 900m east of the original gold showing, and this section was subsequently followed up by two additional lines of induced polarization (“IP”) which traced the IP anomaly associated with disseminated sulphides over a length of 300m.
Drill holes BE18-01 and BE18-02 each tested a deformation zone 600m and 800m west of the original gold showing which yielded anomalous arsenic values in hole BE18-02 and a gold value of .440 gm gold (Au) over 1 m. These two holes were testing the deformation zone exposed by trenching in August 2017.
Drill hole BE18-03 tested a strong IP anomaly 150m north of hole BE18-01 in a new subparallel shear which extended 1300m to the east north east and had never been tested before. An 11m wide disseminated sulphide zone was cut with narrow porphyry zones. Low gold values were found, but geologically this shear may warrant further investigation.
Drill hole BE18-04 was drilled 900m east of the original gold showing and cut albitized zones and a wide disseminated sulphide zone with assays of .650 gm gold (Au) over 1.0m.
Drill hole BE18-05 was drilled to test the second parallel shear north of the one tested by drill hole BE 18-03 at a point 900m east of hole BE18-03 and it cut an 11m wide disseminated pyrite zone in a sheared volcanic similar in appearance to hole BE18-03, but had folded grey quartz veins with sulphides. This zone also contained low gold values but may warrant further testing and use of pathfinders to vector into a gold zone.
Drill hole BE18-06 was drilled 200m west of the original gold showing into part of the deformation zone. Assays of .132 gm gold (Au) over 1.0 m were found.
Drill holes BE18-07, BE18-08 and BE18-09 were drilled to test a different shear zone 550m south of the original gold showing and cut intensely carbonated (ankeritized) zones with quartz and pyrite. These three drill holes were step out holes from BE17-04 which contained anomalous gold and arsenic (see the Company’s news release of July 12, 2017). Drill hole BE18-08 drilled 100m west of BE17-04 yielded 1.59 gm gold (Au) in a small 2 gm sample with acid digestion, but was not validated by a 30 gm Fire Assay. The strong arsenic values on this shear, particularly in drill hole BE18-09, has left this zone as a possible follow up target. Drill hole BE18-07 also gave .242 gm gold (Au) over 1.0 m confirming the anomalous nature of this structure.
Drill holes BE18-10 and BE18-11 cut a wide disseminated pyrite zone in a porphyry 2 km east of the original gold showing but yielded low gold values. Hole BE18-12 cut sulphides in mafic volcanics 2.1 km east of the original gold showing with 1 m of anomalous base metals. Hole BE18-13 cut a narrow oxide iron formation in the same package of rocks as hole BE 18-12, 1.5 km east of the original gold showing. Hole BE18-14 cut a strong IP anomaly with intense quartz stockwork occurring in carbonated volcanics but containing low gold values. Hole BE18-15 tested a shear zone with iron carbonate- sericite alteration with low gold values.
No drilling was done at this time on the west grid of the Property where values have been located of 6.6 gm near line 48800E. This remains a target to be followed up where untested IP anomalies occur.
In conjunction with the drill program, an IP survey was run on 12 lines on the east grid of the Property which has traced the major shears that parallel the Ridout Fault and, in particular, the zone tested by BE17-04 which now extends 1700m east of drill hole BE17-04 and continues eastward.
Six lines of magnetics were also done on the west grid of the Property over wet areas not accessible in the summer and an IP survey is planned over this part.
Samples were obtained by splitting .5 to 1.0 m intervals in a secure core facility in Ontario. Preparation of the samples was done by ALS Canada in Thunder Bay, Ontario and assays were completed by ALS Canada in North Vancouver British Columbia using acid digestion and ICP analysis for the pathfinders and Fire assay on a 30 gm sample with ICP finish for the gold values over .1 gm.
The Brunswick Property drill program was supervised by Robert S. Middleton, P.Eng., and assisted by Jordan Laarman, P.Geo. PHD. 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, 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
FORWARD LOOKING STATEMENTS
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.