TORONTO, ONTARIO, May 31, 2012 - Rainbow Resources Inc. (TSX VENTURE: RBW) ("Rainbow" or the "Company") is pleased to report that the Company is proceeding with a permit application for a surface bulk sample of up to 10,000 tonnes at its Referendum Property near Nelson, B.C., part of the 12,700-hectare Big Strike Project.
The targeted area on the eastern side of the Referendum Property includes a quartz tourmaline stockwork system and hydrothermally altered rock within a zone, open in all directions, measuring approximately 700 metres by 150 metres. A mini-bulk sample from surface, totalling 240 tons, was carried out in the 1980's from this area near an underground shaft. Ore with very low sulphide content was processed at the Trail Smelter and returned an average grade of 0.13 oz/ton Au (4.5 g/t) and 0.87 oz/ton Ag (29.8 g/t) for approximately 30 ounces of gold and 210 ounces of silver.
Referendum is one of four high priority properties in the Big Strike package. Drilling is expected to begin shortly at the Gold Viking Property followed by the flagship International Silver Property, upon receipt of permits which are expected imminently. The Ottawa Property, the top producer of high-grade silver in the Slocan Valley in the 1900's, is contiguous to Gold Viking and will also be a focus of the Company's exploration efforts this summer.
The International, Gold Viking and Ottawa have never been previously drilled despite high-grade past production from all three. In addition to its upcoming drill program, Rainbow has already commenced prospecting at its Big Strike Project with the goal of identifying new potential discovery areas throughout this highly prospective and under-explored land package. Results will be released when they become available.
After an initial site visit, a review of historical data, and receipt of assay results from sampling, Rainbow Resources is pleased to report that it will be proceeding with a Phase 1, 2,000-metre RC drill program at its Jewel Ridge Property in Nevada along the prolific Battle Mountain-Eureka Trend during the third quarter of 2012.
With several past-producing pits lined up on a primary mineralized structure that trends north for at least 3 kilometres toward Barrick Gold's Ruby Hill Mine, contiguous to Jewel Ridge, Moose Mountain Technical Services (Rainbow's resource consultants) believe there is the potential for a large tonnage deposit at Jewel Ridge. Strong evidence for this also comes from historical drilling results, including 2.1 g/t Au over 39.6 metres near-surface, and the existence of rust zones, underground workings and trenching over a wide area. Rainbow's drilling strategy will be to extend the shallow pits at depth and follow the north-south geological contact directly toward the Ruby Hill Mine.
Significant results from Moose Mountain's recent site visit included chip samples across 15 metres from the south wall of the Hamburg Pit (southern portion of Jewel Ridge) that assayed 0.98 g/t Au, 14.1 g/t Ag and 3.45% Zn, while another chip sample across 7 metres from the nearby Paroni Pit assayed 0.91 g/t Au and 3.9 g/t Ag. A hematite float sample, believed to have originated from the Dunderburg Mine area in the northwest section of the property, graded 3.6 g/t Au, 30.4 g/t Ag and 2.2% Pb.
The 607-hectare Jewel Ridge Property is strategically located between Barrick's Ruby Hill Mine and Timberline Resources' advanced-stage Lookout Mountain Project to the south. Rainbow can earn up to a 75% interest in Jewel Ridge as part of its option agreement with Greencastle Resources Ltd. announced March 29, 2012.
Barrick reported that, as of December 31, 2011, proven and probable reserves at the Ruby Hill Mine include 16.8 million tons at an average grade of 0.058 oz/ton Au (1.99 g/t) containing approximately 978,000 ounces. Barrick estimates additional mineralization of 107.6 million tons at a grade of 0.021 oz/ton Au (0.72 g/t). Total production in 2011 was 127,000 ounces.
The Lookout Mountain Project contains 390,000 ounces of measured and indicated gold resources (18,838,000 tonnes at 0.65 g/t Au) and 221,000 ounces of inferred resources (16,679,000 tonnes at 0.41 g/t Au) as reported by Timberline April 19, 2012.
Rainbow filed an application last month (April) to be listed on the OTCQX. This pending U.S. listing is expected to give the company increased visibility and exposure in the American market and will make it easier for United States-based investors to trade Rainbow stock.
Quality Assurance/Quality Control
Rainbow's disclosure of a technical or scientific nature in this news release has been reviewed and approved by Mr. Jim Decker, P.Eng., a director of Rainbow Resources 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 Jewel Ridge were submitted to ALS Labs in Elko, Nevada. Sample preparation included sample weight, crushing to 70% passing 2 mm, riffle splitting, and pulverizing to 85% passing -75um. Analytical procedures included Agua Regia digestion with a 35 element ICP AES finish. The gold was determined by fire assay on a 30g sample with an ICP AES finish.
TO VIEW MAP COPY URL BELOW INTO NEW BROWSER WINDOW
Rainbow's shares are listed for trading on the TSX Venture Exchange under the symbol
RBW.V. Rainbow currently has 33,923,163 common shares issued and outstanding.
For further information: President David W. Johnston - (403) 701-2781.
Visit our website at www.RainbowResourcesInc.com
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 news releaseis 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.
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 of this news release.