Toronto, Ontario - Rainbow Resources Inc. (TSXV: RBW) ("Rainbow" or the "Company") is pleased to announce that it has received a Notice of Work (NOW) permit from the British Columbia Ministry of Energy and Mines to extract a bulk sample of gold ore at its Referendum Property.
Background - The Referendum Property is located about 10 km southwest of Nelson, BC. Access is via Highway 3 from Nelson, then onto Blewett Road. The claim block covers an area of approximately 1,300 hectares.
Geology - The Referendum Property consists of multiple generations of quartz veins cutting a schist host rock. The primary orientation of the veins is striking 80 to 85 degrees with a nearly vertical dip. The host rock in the area is an andesite of the Lower Jurassic Rossland Group. Vein exposures at Referendum indicate the presence of an en echelon shear filling mineralized zone. Numerous trenches expose vertical banded quartz veins up to 2m in width and over 400m extent East to West. Visible gold is present in dark banded quartz veins. One of the apparent associations to note is the presence and abundance of tourmaline veining within the quartz, which is believed to influence the gold grades which occur as coarse free gold within the veins.
Technical Information - Artisanal mining has been carried out on the property over decades evidenced by a shaft and rock stockpiles in its vicinity. Previous sampling by Rainbow personnel have yielded results with analyses as high as 78 g/t Au.
Based upon the success of previous field mapping and sampling programs Rainbow has decided to mine a nominal 1,000 tonne bulk sample from an identified high grade zone and process the gold contained. A grab sample from this zone collected on June 16, 2014 returned an assay of 14.3 g/t gold.
The bulk sample material will come from an area approximately 50m long by 5m wide and up to 3m deep. The bedrock is composed of sheared and heavily weathered quartz veins and stringers that can be easily excavated without any need for drilling and blasting. The sample will be mined by a backhoe excavator, loaded into on-highway haul trucks and transported for processing at an aggregate facility close to Nelson. The majority of the gold is expected to be recovered using gravity separation with no chemical treatment involved. Reject material from the processing will be incorporated into some of the aggregates produced by the facility.
Proceeds from the operation will be used to fund further exploration activities on the Nelson properties, including but not limited to diamond drilling and further bulk sampling.
Mr. Jim Decker, P. Eng., director of Rainbow Resources Inc. and a Qualified Person as defined by National Instrument 43-101, has reviewed the contents of this news release.
For further information: President David W. Johnston - (403) 701-2781.
Visit our website at www.RainbowResourcesRBW.com
About Rainbow Resources: Rainbow is a Canadian based junior exploration company focused on building shareholder wealth through aggressive exploration in a favourable and proven mining jurisdiction - the West Kootenays in southeast British Columbia (silver, gold and flake graphite). Rainbow's shares are listed for trading on the TSX Venture Exchange under the symbol RBW.V, and on the OTCQX International under the symbol RIINF. Rainbow currently has 50,047,052 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, (more)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 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.
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