It took about an hour to fully digest it, but Rainbow finally delivered some meat to investors yesterday…a portion of it didn’t taste so good, but most parts were definitely tasty enough to convince us to stick around for the desert – whether that’s sooner or later…the not-so-tasty part, of course, was the International and we’ll comment on that first before getting to the juicy Jewel Ridge meat that we had some fun sinking our teeth into…what could be developing at Jewel Ridge is much more significant than we first imagined given specific geological details in yesterday’s news and an important “clue” that most investors may have overlooked…

There’s no question Jewel Ridge has emerged as Rainbow’s “Crown” Jewel, and that’s an important development given the fact the company is still in the midst of trying to make a discovery at one of its properties in the Kootenays…RBW has completed a 6-hole drill program at Jewel Ridge in Nevada, and each of the 6 holes has intersected “favorable mineralized zones” at the past producing property…descriptive language like “intense silicic alteration with considerable jasperoid content” and a hole that has “strong affinities” to an historical hole that assayed 2.1 g/t Au over 39.6 metres suggests to us that Rainbow has a great chance of reporting some excellent assays in the near future…also, the fact they’ve cut a deal to secure 19 patented claims in an area where they’ve made a prospecting discovery – before any assays are in – strongly suggests they know they have found or drilled something of significance…

Some other things also caught our attention including a “conceptual geological model” that is being produced for Jewel Ridge…Rainbow is in possession of hundreds of historical drill holes for Jewel Ridge, so it’s quite possible they may feel confident enough to soon come out with some sort of preliminary estimate of potential tonnage and ounces for this property…mineralization, Rainbow reported, “appears to be continuous along multiple contacts over a north-south trend of at least 4 kilometres”…this is of course lower-grade mineralization in the context of the type of deposits in this general area, but tonnage can add up in a hurry with these systems…

Getting back to the point regarding Rainbow’s purchase of those 19 claims, we found it interesting that the words “100% ownership” were used in reference to those claims with Rainbow pointing out that “these are not part of the Company’s joint-venture Jewel Ridge option agreement with Greencastle Resources Ltd.”…this is just speculation on our part, but given that language, Rainbow’s recent heavy emphasis on Jewel Ridge, and the possibility of good results, we wouldn’t be surprised if Rainbow is contemplating 100% ownership of the entire Jewel Ridge package by cutting a new deal with Greencastle…markets generally prefer 100% ownership situations to joint ventures, so a move like that by Rainbow would make sense from their standpoint and would potentially be quite significant in terms of overall “valuation” of RBW

So while the International news wasn’t what we were expecting, Rainbow has put all of its cards on the table and they still hold a very good hand in our view…assays for 16 more drill holes are pending (B.C. and Nevada), and our level of confidence in the Jewel Ridge Property has increased substantially…