Greencastle, Rainbow complete first 2 Jewel Ridge holes

2012-11-13 10:04 AT - News Release

Also News Release (C-RBW) Rainbow Resources Inc

Mr. James Pirie of Greencastle reports


Rainbow Resources Inc. has completed the first two holes of a phase 1 reverse circulation drill program at Greencastle Resources Ltd.'s Jewel Ridge property near Eureka, Nev. This first phase of drilling is focused on the past-producing Hamburg Pit area. Each hole, drilled to depths of approximately 150 metres (500 feet), hit the contact zone between the Hamburg Dolomite and the Dunderberg Shale with intense silicification reported throughout each hole. Drilling is following up on some highly encouraging near-surface historical drill results in this area of Jewel Ridge including 2.1 g/t Au over 39.6 metres.

Jewel Ridge is located on the south end of Nevada's prolific Battle Mountain - Eureka Trend, along strike and contiguous to Barrick Gold's two-million ounce Archimedes / Ruby Hill mine to the north and the advanced-stage Lookout Mountain Project to the south. Jewel Ridge contains several historic small open-pit gold mines which align along a north-south trending stratigraphic contact of Lower Paleozoic sedimentary rocks, as well as several other gold mineralized zones with a variety of structural and lithological controls.

Significant results from recent work by Rainbow 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 per cent zinc. A hematite float sample, believed to have originated from the Dunderberg mine area in the northwest section of the property, graded 3.6 g/t Au, 30.4 g/t Ag and 2.2 per cent lead.

The Jewel Ridge property consists of 96 unpatented lode mining claims and eleven patented claims covering approximately 1,510 acres. Rainbow can earn up to a 75-per-cent interest in Jewel Ridge as part of its option agreement with Greencastle, announced March 29, 2012.

Northwest Ontario Base Metal Properties

As reported in August 2012, at the Rockstone property, west of Thunder Bay, the Company drill-tested 4 separate airborne electromagnetic (VTEM) anomalies. The anomalies are located several kilometres east, but in the same sequence of volcanic and sedimentary rocks where boulders of zinc-rich base metal mineralization were discovered in Aldina Township in the 1990s. No significant gold and silver values were returned in the current drilling, but in one hole, one section of 24 metres containing 1% combined Zn+Cu was noted within a graphitic argillite unit. This intersection is one of the more encouraging found in this sequence of Archean greenstone rocks over the last decade. Late in September, a crew carried out a down-hole pulse EM survey on each of the four drill holes and identified several anomalous features which are currently being evaluated for further exploration.

During the summer at the Stake property, located at the southwest end of the Sturgeon Lake greenstone belt, the Company completed a small soil survey to test an area up-ice from some float boulders of quartz diorite containing disseminated chalcopyrite and pyrite with anomalous gold values. Although some of the soil samples returned anomalous copper and gold values, after further evaluation the property was returned to the vendor.

At the Phyllis property, east of Ignace, prospecting and sampling followed up on anomalous copper and nickel values identified earlier in association with mafic and ultramafic rocks and breccia in the area. Following evaluation of the field work and assay results, the property was returned to the vendor.

All technical information in this press release has been reviewed and approved by James Pirie, P. Eng. who is a Qualified Person ("QP") under National Instrument 43-101.

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