Exploration Update and Assay Results for Brunswick Gold Exploration Property
P:Astrid/RMO/2017/NR/RMO-NR0712.doc
Trading symbols: TSX-V: RMO
Frankfurt: EK7N-FF
News Release No. 17-19
Exploration Update and Assay Results for Brunswick Gold Exploration Property
West Vancouver, British Columbia – July 12 , 2017 - Rainy Mountain Royalty Corp. (the
“Company” or “Rainy Mountain”) is pleased to report drilling assay results and provide an
exploration update on its optioned gold exploration property (the “Brunswick Property” or
“Property”) located 140 km south of Timmins, Ontario.
Brunswick Property Exploration Highlights:
- Initial drill assays confirm gold zone down plunge with 3.29 gm Gold (Au) 1.0m
- New 6.6 gm gold zone in pyritic volcanic tuff horizon (“Tuff”) at surface with associated
Induced Polarization (“IP”) anomaly, not yet drilled
- 4.6 km of 4 different shear zones tested under drill program
- Gold indicator pathfinders arsenic-antimony observed in 9 of the 14 holes completed
- Many IP anomalies remain to be drilled
- 5.1 km of strike length still not surveyed on 9.6 km long property
- New sericite schist uni t (possible porphyry) found in a fifth shear zone warrants future
drilling
As previously announced (see Company’s news release dated June 8, 2017), 14 short drill holes
were completed (2121m) on four different 2 -4 km long shear zones , as well as the original gold
showing area on the Brunswick Property adjacent to the Ridout Fault. All of those shear zones
consisted of intense iron carbonate (anker ite) alteration with sericite, pyrite, and sections of
laminated quartz with hydromuscovite, fuchite alteration (chrome mica), and sections of
silicification and albitization. Intense folding has been observed, and the Company’s Qualified
Person, Robert Middleton, P.Eng., believes that all four shear zones resemble gold settings found
in the Timmins-Porcupine Camp.
The Brunswick Property is 6 miles (9.6 km) long and thus far grid survey lines have covered
only a length of 4.5 km, leaving 5.1 km yet to be s urveyed with additional lines and geophysics.
Favourable structures extend off the grid in both east and west direction s which will also require
detailed mapping and prospecting. Within the original survey grid, 7 shear zones have now been
identified north of the Ridout Fault, but only 5 have been drilled to date.
Drilling Program
The assay results for all of the drill holes have now been received and reviewed by the Company
and the Company now has a complete set of Induced Coupled Plasma (“ ICP”) analysis, which
identified the pathfinder elements , such as Arsenic (As), Antimony (Sb), Zinc (Zn),
Molybdenum (Mo), Tungsten (W) , Copper (Cu), Silver (Ag) and T ellurium (Te). Geochemical
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maps are being prepared using this data to generate vectors to locate additi onal mineralization.
As a general statement , the original gold showing has a Mo -W pathfinder association, and the
major shears have very high As-Sb values in 9 of the 10 holes, and the new disc overy described
below has a Cu-Te association in pyrite. As a result, it is believed that three geochemical settings
occur on the Property.
Four of the shear zones on t he western grid were tested by six holes BW17 -01 to -06 and all
contained anomalous Arsenic (As) up to 1687 ppm, however, only two of the shears had elevated
Antimony (Sb) close to laminated quartz with hydromoscovite. There were low anomalous gold
values in these holes and the pathfinders suggest possible gold mineralization may occur at depth
or along strike from the holes. A fifth IP trend to the no rth of the four shears has been recently
identified and remains untested.
On the eastern grid, four different shears were drilled by drill holes BE17-01, 02, 04, 05, and the
gold zone was tested b y 4 - 50 m holes (BE17-06 to -09). Several other IP trends remain to be
tested. Anomalous As -Sb, was seen in four of the holes, and the highest As value obtained to
date (8380 ppm As) was in hole BE 17-04. Hole BE 17-04 is located 500m south of the original
gold showing and had several very anomalous gold values (298 ppb, 113 ppb, 207 ppb, 364 ppb)
to the side of the high As value. This hole was testing one IP trend which is over 2.1 km long,
and located 400m north of the Ridout Fault. Therefore , the Company intends to conduct further
follow up drilling to further test this target.
Original Gold Zone Follow-up
Hole BE17-07 located 50m west of the original gold showing gave the following results. This
hole suggests the gold zone plunges west around 45 degrees. Four short 50 m holes were drilled
on this zone and additional holes are required on the westward down plunge.
Interval
Drill Hole From
(metres)
To
(metres)
Length
(metres)
Gold (Au)
grams
BE17-07
32 33 1.0 1.38
33 34 1.0 3.29
34 35 1.0 .75
35 36 1.0 .375
36 37 1.0 .690
37 37.9 0.9 .213
Prospecting Program Finds New Targets
During the course of drilling on the east grid , prospecting discovered a fifth shear zone adjacent
to the Ridout Fault on the east side of the east grid, which contained sericite schist which may
have been a sheared porphyry. Initial plans were to trench th is zone, however, it has since been
decided to drill a section across the zone to locate parts not observed on surface. Intense
carbonate alteration can be seen north of this schist zone.
Prospecting and sampling was also done on the west grid, and a new discovery was made on line
48800E on the east end of a 600m long untested IP trend. The rocks were different th an the four
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shears to the south being a pyrite bearing volcanic Tuff horizon, which is an important rock unit
on the P roperty and similar to host rocks around the original gold showing. One grab sample
assayed 6.6 gm Au from this pyrite bearing Tuff with a ssociated copper values. The fault offset
of this IP trend appears on the east g rid and is untested and is 500m long, leaving a 1.1 km long
trend to trench, sample and drill.
The Company intends to complete a follow up program of trenching and drilling on the
Brunswick Property.
Core Handling and Assay Preparation
The mineralized sections of the drill holes were split at approximately 1 metre intervals, with one
half sent to ALS Canada Inc.’s Timmins, Ontario lab for initial preparation. The remaini ng core
was returned to the core box and stored in a secure core shack located at the Watershed, Ontario
(located half way between Timmins and Sudbury on Highway 144 , 35 kms from the Property ).
The gold assaying was completed by ALS Canada Inc. in their North Vancouver facility using a
fire assay e xtraction from a 30 gm sample with ICP finish. T he pathfinder elements were read
using a 1 gm representative sample with aqua regia digestion and an ICP finish.
This news release has been reviewed and approved by Robert Middleton, P.Eng., who is acting as the
Company’s Qualified Person for the Brunswick Property project, in accordance with regulations
under NI 43-101.
For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604 -922-
2030, or visit the Company’s website at www.rmroyalty.com.
RAINY MOUNTAIN ROYALTY CORP.
“Douglas L. Mason”
_________________________________
Douglas L. Mason, Chief Executive Officer
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 or accuracy of this release
This news release includes certain statements that may be deemed “forward-looking statements ” within the meaning of
applicable securities legislation. All statements, other than statements of historical facts, that address such matters as fu ture
exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company
expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the
reasonable control of the Company. Such statements are not guarantees of future performance and actual results or developments
may differ materially from those expressed in, or implied by, this forward -looking information. Factors that could cause actual
results to differ materially from those in forward -looking statements include such matters as market prices, exploitation and
exploration results, continued availability of capital and financing, and general economic, market or business conditions. An y
forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained
herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligati on
to update p ublicly or to revise any of the forward -looking statements, whether as a result of new information, future events or
otherwise, except as may be required by applicable securities laws.
This news release does not constitute an offer to sell or a solicitati on of an offer to buy the securities described herein in the
United States. The securities described herein have not been and will not be registered under the United States Securities Ac t of
1933, as amended, and may not be offered or sold in the United St ates or to the account or benefit of a U.S. person absent an
exemption from the registration requirements of such Act.