Rainbow Resources Inc. Presidents Update
January 28, 2013
This week I’m attending AME B.C.’s 30th Annual Mineral Exploration Round-Up Conference in Vancouver. Over 8,000 participants from 38 different countries attended this event last year. I highly recommend it to investors.
In the days ahead in Vancouver, I’m looking forward to sharing the important progress Rainbow has made on the ground in recent weeks and months as I firmly believe our company has entered a new stage in its young history with a significant early discovery at the Gold Viking Property in southeast British Columbia, and continued success at the advanced-stage Jewel Ridge Property in Nevada. This is what exploration is all about - uncovering potential new deposits the world needs. Gold Viking and Jewel Ridge have positioned Rainbow for a breakthrough year in 2013.
Our recent drilling discovery in the southern part of Gold Viking is even more remarkable when one considers this property had never been drilled before. What really excites me and our geological team is that we now have a clear trail of mineralization to pursue, supported by geophysical and geochemical data obtained last year, which is why we’re so eagerly anticipating the start of a Phase 2 drill program. Success in an initial round of drilling can often lead to even better results with the next set of holes. Rainbow has developed a strong relationship with the Village of Slocan, access to Gold Viking is easy (immediately adjacent to Slocan) and the property is surrounded by important infrastructure.
We already know the Slocan Valley is one of the most highly mineralized regions in the province. Since the late 19th century, this area has hosted more than 20 mining and milling operations and about 200 additional mines that have shipped ore to custom mills and smelters. Right next to Gold Viking is our Ottawa Property, part of the Ottawa Mines - the Slocan district’s #1 high-grade silver producer in the 1900’s. Gold Viking and Ottawa share similar geological characteristics, another reason we’re so excited by what we see at Gold Viking.
While Rainbow’s exploration focus remains squarely on Gold Viking and Jewel Ridge, due to exciting recent developments at both, keep in mind we have been developing an important pipeline of additional opportunities in the West Kootenays within the package that makes up our 100%-owned Big Strike Project. During the fourth quarter last year, we reported high-grade gold samples from both the Referendum and Whitewater properties. We look forward to advancing those situations in 2013. The International Silver Property remains a key asset based on historical evidence and what we learned from last summer’s initial shallow drill program.
Interest is also picking up in the Slocan Valley flake graphite district where we hold a strategic land position - the second-largest next to privately-held Eagle Graphite which operates the only natural flake graphite mine in western Canada. We are examining ways to unlock the value of our flake graphite asset to the benefit of shareholders.
As a director of the Chamber of Mines for eastern B.C., I can state unequivocally that interest in the mineral rich West Kootenay region is growing rapidly. This is great news for Rainbow which is an exploration leader in the area with a total land package of nearly 25,000 hectares (Big Strike Gold-Silver Project consisting of eight properties, plus the Slocan Valley Flake Graphite Project).
The companies that will succeed in this challenging junior market environment are the ones that can make real discoveries and move their projects forward with a strong team of people. At Rainbow, we are people-driven and discovery-focused. This is what led to our acceptance into the Core Shack Display for the March 2013 PDAC Convention in Toronto. In just three months in the second half of last year, we drilled three separate properties and we “hit” on two of them - a major accomplishment in these markets. By any measure, our progress over the last 12 months has been impressive and we begin 2013 far ahead of where we were at this time last year. Thank you for your continued support, and we look forward to an exciting and rewarding 2013.
David W. Johnston
Rainbow Resources Inc.