TORONTO, ONTARIO, March 29, 2012 -- Rainbow Resources Inc. (TSX VENTURE: RBW) ("Rainbow" or the "Company") is pleased to report that initial prospecting, rock and soil sampling carried out by Moose Mountain Technical Services, the Company's resource consultants, and Moose Mountain's extensive review of work completed by Braveheart Resources since 2006, has confirmed historical assay results and the potential for an epigenetic polymetallic deposit (silver, lead, zinc and possibly gold) at the Company's 4,000-hectare International Property near Kaslo in southeast British Columbia.
High-grade silver, lead and zinc, as well as traces of gold, were first discovered at the International in the early 1900's (small-scale mining of high-grade near-surface material took place intermittently until the early 1940's) but access issues have prevented any drilling from ever taking place. The first road into the property on the eastern shore of Duncan Lake was built in the 1970's. Privately-held Braveheart Resources, which acquired the nine International crown grants and eight "cell" claims in 2006, upgraded road access, providing easy entry into the International. Rainbow holds a 100% interest in the property after its acquisition of Braveheart last fall.
Historically, a northwest trending vein system at the International has been traced over a true strike length of more than 1.2 kilometres and has been tested with numerous adits confirmed by Moose Mountain. Mineralization consists of weak to massive galena, pyrite and sphalerite, and is hosted by black, carbonaceous, siliceous schist and decomposed mica schist. Continuity of the mineralization along strike and at depth, and possible expansion of this system along a 4-kilometre north-south structural corridor, needs to be verified through upcoming additional exploration including a comprehensive drill program with initial targets soon to be finalized. Results of a recent Fugro heli-borne electromagnetic survey over the entire property are expected sometime in April.
"This project has been several years in the making and started with Braveheart strategically assembling a 40 square kilometre land package that included important crown grants," stated President David Johnston. "The infrastructure dynamics around the International have changed remarkably since a discovery was first made at this property in the early 1900's, so what's possible now was not achievable historically. Given areas of impressive mineralization that have been identified at and near the surface, we're evaluating all options and we're eagerly anticipating an aggressive drill program to test this system for continuity and possible extensions in all directions. With our strong knowledge of the area and Rainbow's focus on defining a deposit, this is going to be a very exciting spring and summer for us. We believe there is excellent potential to greatly expand the known area of mineralization throughout this land package, and we have an experienced prospecting and geological crew lined up to accomplish that goal. The Duncan Lake district has produced numerous silver-lead-zinc deposits and we believe the geological conditions are ideal for the discovery of a substantial deposit at the International."
Moose Mountain reports that 12 rock samples collected in 2008 by Braveheart Resources from two distinct crown granted claim areas - seven from the "Forgotten" package on the northern portion of the property, a highly prospective target given historical work by Omo Mines Corporation and Kaslo Mines Corporation from the late 1920's to the early 1940's - and five from the "Cabin Fraction" area approximately 1 kilometre south toward the central part of the property - returned high grades of silver and lead. The average grades of 562.3 g/t Ag (16.4 oz/ton) and 39.2% Pb are fairly typical of historical assays from old workings going back to the early 1900's.
Eight of the above samples exceeded 590 g/t Ag or 17 oz/ton and 47% Pb with the highest readings being 1,148 g/t Ag or 33.48 oz/ton Ag and 68% Pb. Moose Mountain recently took one rock sample from the Forgotten area and it assayed 300 g/t Ag (8.75 oz/ton) and 51.7% lead. Rainbow cautions that these grab samples, while encouraging, may not be representative of mineralization on the property.
As detailed in a National Instrument 43-101 technical report, initial prospecting by Moose Mountain has identified an exposed vein structure - the "Cabin Showing" - approximately 1 kilometre southeast of the Forgotten area. Mineralization within this vein structure, exposed for approximately 80 metres along strike by a road cut, and up to 2.5 metres thick, occurs as irregular massive sulphide bodies of galena, pyrite and rare sphalerite. It appears to be conformable to the layering of the host schists with a strike of approximately 290 degrees and dips ranging from 5 degrees to 20 degrees to the north. Three channel samples from this showing, across vein intervals between 0.6 m and 2m, returned an average assay of 10 g/t Ag and 0.85% lead. Below the exposed vein there is mineralized debris in the access road cut and distinctly gossanous soils that are highly anomalous in multiple elements. Drilling is proposed in this particular area in order to test strata below the showing and investigate the strong potential for multiple vein structures.
Soil samples collected by Braveheart Resources and Moose Mountain, from the Cabin Showing to the Forgotten claims, are highly anomalous in lead, zinc, arsenic and boron, suggesting there are many more prospective areas of mineralization on the property.
The International Property, with elevations ranging from 576 metres to 2,133 metres, is situated in the Rocky Mountain Belt near its western edge in the Purcell Mountains, just north of the apex of regional deformation known as the Kootenay Arc. The Horsethief Creek Group, comprising highly deformed quartz mica shist, underlies the property.
Local resources and infrastructure in the immediate vicinity of the International enhance the attractiveness of a potential mining project. The Glacier Hydroelectric Plant Project is just a few kilometres south of the crown grants while good paved highways, after a gravel road from Cooper Creek Junction, connect the property to Revelstoke and Nelson as well as the smelter facilities of Trail.
The International is one of eight properties in the Company's "Big Strike" Project covering a total of nearly 9,000 hectares in the prolific West Kootenay region of southeast British Columbia, an area that has accounted for a large proportion of the province's silver, lead and zinc production as well as significant quantities of gold and copper. Rainbow has received a National Instrument 43-101 technical report on the Big Strike Project and the report is being filed imminently on Sedar.
Tin City Property
The southern portion of Rainbow's 1,000-hectare Tin City Property is attached to the northern tip of the International and is viewed as being a potential extension of a deposit at the International. Historically, the Tin City area was first explored in the 1920's when three short adits, an inclined shaft and some open cuts were driven into galena and sphalerite-bearing quartz veins. A tin showing, importantly also containing some beryllium and scheelite, was discovered in the 1940's. Soil geochemistry outlined several copper, lead, zinc and tungsten anomalies. Exploration since then, including some limited drilling by Newmont, has focused on tungsten with most of that work carried out in the 1980's. Rainbow believes the property warrants a fresh geological approach, especially considering its proximity to the International. Moose Mountain continues to review historical data from Tin City, and results from a recent Fugro heli-borne electromagnetic survey over the property are expected sometime in April.
The President claims are situated on the west side of Duncan Lake, approximately 13 kilometres southwest of the International, and considerable faulting on this under-explored property could have provided a conduit for mineralizing solutions. The Lardeau Group, comprising quartzite, argillites and altered sill material, underlies the property.
The quartzites are brecciated and chloritic within north-trending shears near faults. An 8-kilometre long fault trends northwest through the property and follows the contact between the Upper Index and Sharon Creek Formations. There are some geological similarities between the President Property and the past producing Bluebell Mine (4.82 mllion tonnes grading 5.2% Pb, 6.3% Zn and 45 g/t Ag) approximately 90 kilometres south. Results are pending from a recently completed Fugro heli-borne electromagnetic survey at President.
Rainbow "Round-Up" March 29 In Calgary
The Company will be hosting a Rainbow "Round-Up" event, an information session regarding corporate developments during this first quarter, Thursday, March 29, 2012, beginning at 2:30 pm in the Sovereign Suite on the 35th floor of the International Hotel in Calgary, Alberta (220 - 4th Ave. SW, 35). Rainbow cordially invites all market participants to take advantage of this opportunity to learn more about the Company and its plans for 2012. The event will be hosted by David W. Johnston. Please RSVP by email (david@RainbowResourcesInc.com) or phone (403-701-2781).
Quality Assurance/Quality Control
Rainbow's disclosure of a technical or scientific nature in this news release has been reviewed and approved by Mr. Robert Morris, P.Geo., of Moose Mountain Technical Services, who serves as a Qualified Person under the definition of National Instrument 43-101. A comprehensive quality assurance/quality control program is in place to monitor precision and accuracy of assay results. Rock samples from the International Property were shipped to Loring Laboratories in Calgary, AB., for analysis. Samples were submitted for 30 Element ICP analysis including FA/AA for silver and gold. Samples were digested with Aqua Regia at 95C for one hour and bulked to 20 ml with distilled water. Dissolution was partial for Al, B, Ba, Ca, Cr, Fe, K, LA, Mg, Mn, Na, P, Sr, T and W. Assays were 0.5 gram samples digested by a multi acid with a AA finish.
Rainbow's shares are listed for trading on the TSX Venture Exchange under the symbol
RBW.V. Rainbow currently has 33,508,163 common shares issued and outstanding.
Caution Regarding Forward-Looking Information
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, future work programs and objectives and expected results from such work programs. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information and the risks identified in the Company's continuous disclosure record. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
For further information: David Johnston (403) 701-2781.
Visit our website at www.RainbowResourcesInc.com.
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