Mine & Quarry Data

RAINY RIVER ACQUIRES NEW GOLD PROJECT IN NORTHEASTERN MINNESOTA

Consistent with the company's mandate to search for large-scale gold deposits in under-explored Precambrian Shield greenstone belts, Nelson W. Baker, P.Eng., President of Rainy River Resources Ltd. and its subsidiary 608457 B.C. Ltd., is pleased to report that it has acquired the right to earn a 100% interest in 10 contiguous mining units totaling 4,296 acres (1,738 hectares) called the Mud Creek Project located in St. Louis County, northeastern Minnesota, approximately 30 kilometres south of the international border with Ontario. The project is underlain by the Vermilion Greenstone Belt, part of the Wawa Subprovince which hosts the giant Hemlo deposit (greater than 100 t of gold), and is also part of the Shebandowan Greenstone Belt, host to numerous gold and base metal deposits.

In June 2004, the Minnesota Department of Natural Resources conducted a thirty-two sample glacial basal till orientation survey and a seven sample bedrock sampling program in the Mud Creek area of the Vermilion Greenstone Belt. Both the till and bedrock samples were collected by MDNR's staff and then shipped to Nepean, Ontario for analytical processing in the laboratory owned and operated by Overburden Drilling Management Limited, leaders in tracing glacially transported gold and HMC (heavy mineral concentrates) up ice to their bedrock source.

Of the thirty-two samples analyzed, four were highly anomalous for gold, with counts ranging from 88 to 1,282 gold grains per 10 kg of -2mm sample, and pristine gold grain proportions up to 98% and up to 8.05 grams per tonne gold in HMC (non magnetic concentrates). A suite of bedrock samples collected returned assays ranging from 424 ppb up to 12.25 grams per tonne gold and up to 42.50 grams per tonne silver. These results are significant as they confirm the presence of a previously unrecognized mineral system perhaps associated with the Mud Creek deformation zone. An orientation program consisting of till sampling will be conducted by ODM's experienced staff on the Mud Creek Project is scheduled to begin later this month. Data gained from this program will be integrated with existing data and will be utilized to design the scope and scale of the 2006 exploration program.