TORONTO,
ONTARIO, August 13,
2013 - Rainbow Resources Inc. (TSX
VENTURE:RBW) (OTCQX:RIINF) ("Rainbow" or the "Company") is
pleased to announce that it has completed a comprehensive review of
all available technical data associated with its Jewel Ridge
property near Eureka, Nevada. This review has permitted the Company
to identify several promising drill targets on the property that
should be followed up on. It is anticipated that a significant
portion of the funds received from the current private placement
offering can be directed towards a reverse circulation drilling
program at Jewel Ridge later this fall.
Background - The
Jewel Ridge property is located ~5 miles south of the town of
Eureka, Nevada and falls within the Battle Mountain-Eureka Trend,
one of several trends across Nevada characterized by world-class
sediment-hosted disseminated gold deposits. The 1,510 acre (611
hectares) Jewel Ridge property is located between the operating
Barrick Gold-owned Ruby Hill mine to the north and the
advanced-stage exploration project Lookout Mountain to the south,
owned by Timberline Resources.
A number of historic workings exist both within the
Jewel Ridge claim blocks as well as in the adjacent claims to the
north and south. Some of the larger historic mines in the claim
blocks include the Hamburg, the Peroni, the Croesus, and the Eureka
(See Figure 1 attached). Based on historical records it is
estimated that these mines produced approximately 35,000 ounces of
gold equivalent during the period 1871 to the 1920's.
Geology - The Eureka
Mining District consists of Early Cambrian through Permian
carbonates, shales and quartzites, overlain by Eocene to Oligocene
volcanics and intruded by several units in the Late Mesozoic and
Tertiary. Typical of Central and Eastern Nevada the entire sequence
has been folded and faulted a number of times between the
Pre-Cambrian through the Tertiary. Two similar but distinct styles
of mineralization have been identified within the Jewel Ridge claim
block:
-
1.Irregular polymetallic
replacement bodies primarily isolated to the northern part of the
property near the historic Croesus and Eureka mines and,
-
2.Bedded replacement disseminated
gold bodies to the south near the Peroni and Hamburg mines.
These two types of deposits seem to have been the most
productive within the Eureka Mining District as a whole.
The units of particular interest within the
stratigraphic package at the Jewel Ridge property include the
Cambrian Hamburg Dolomite and the Cambrian Dunderberg Shale. These
units have been heavily folded and faulted, resulting in a steep
eastward dip to the contact. Gold mineralization is hosted within
the Hamburg dolomite, and is generally associated with
dissolution-collapse breccias along faults or other structures.
Alteration associated with the deposits is similar to that of other
disseminated gold deposits - decarbonatization, argillic
alteration, and silicification/development of jasperoids.
Technical Review and
Analysis - A data base comprising 383 drill holes with gold
assay values was assembled from various past reverse circulation
drilling programs on the property summarized as follows:
-1975 - 1983 (Peter Galli)
-1984 - 1985 (Norse - Windfall)
-1992 - 1999 (Homestake)
-2004 - 2007 (Greencastle)
-2012 (Rainbow)
Table 1
Click image to see full size.
The information in this data base was utilized to
construct a Leapfrog Mining model that enabled Rainbow to identify
two zones with potential quantities and grades that could warrant
further exploration. A 7.5 minute DEM of the Pinto Summit was used
as an elevation map, and the USGS geologic map by Nolan (1972) was
used as the geologic map overlay. A structural control was placed
at ~350 degree azimuth with a 60 degree dip to the east to reflect
the contact between the Hamburg Dolomite and the Dunderberg Shale,
as mapped by Long et al (2012).
Gold bearing shells were generated in oz/ton Au,
reflective of the assay data values using thresholds of 0.005
oz/ton, 0.01 oz/ton, and 0.03 oz/ton (0.14, 0.28, and 0.85
grams/ton) respectively. The highest assay value within the
available drill hole data is 0.48 oz/ton Au (15.0 grams per ton).
The resulting model indicates a series of ellipsoid pod-like gold
bearing zones locally stacked that can be generalized into two
zones of mineralization in the Windfall Canyon, below the Hamburg
Pit (South Zone) and between the Connolly Mine and the Eureka
Tunnel (North Zone). Further review showed that all of these
regions lie along the contact between the Hamburg dolomite and the
Dunderberg shale. A range of tonnages and grades associated with
these two zones was calculated as shown in Table 2 below, providing
Rainbow with considerable encouragement to continue exploration on
the property. The potential quality and grade associated with these
quantities is conceptual in nature and there has not been
sufficient exploration to define a mineral resource. Furthermore,
it is not certain that additional exploration will result in the
target being delineated as a mineral resource. Further details,
including plan and sectional views generated by the model can be
obtained by visiting the Company's web site, www.RainbowResourcesRBW.com.
Table 2
Click image to see full size.
Follow-Up - Based on
the technical review performed, the Company has decided to proceed
with further exploration drilling as soon as appropriate funding is
available. The program will be designed to focus on three targets
identified from the review:
-
1.Step-out
drilling along strike of the contact between the Hamburg Dolomite
and the Dunderberg Shale. The presence of the operating Barrick
Ruby Hill mine to the north and the late-stage exploration
Timberline Resources project to the south clearly indicates some
lateral continuity in exploration potential.
-
2.Twinning a
representative number of holes in order to verify the integrity of
historic drill hole data, especially those falling along the
contact.
-
3.Selective
drilling in the area of historic workings, particularly the
recently acquired Croesus claims as there may be additional
exploration potential to be discovered.
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 two favourable and proven
mining jurisdictions - the West Kootenays in southeast British
Columbia (silver, gold and flake graphite), and Nevada where
Rainbow's Jewel Ridge gold-silver project is in the heart of a
major producing district. 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
45,720,052 common shares issued and outstanding.
Figure 1 - Drill Holes & Gold Bearing Zones
To View Map Image,
please copy and paste URL below into a new browser:
http://thenewswire.ca/client_files/2013-08-13-3.pdf
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.
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.
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