Promising mining results being discovered

FORT FRANCES—Several mining companies working throughout Rainy River District continually have been discovering positive results, making those in the industry enthusiastic about the possibilities here down the road.
Rainy River Resources Ltd., a Vancouver-based company exploring in an area near Blackhawk, has announced discovering new zones that had some extremely high grade gold in it.
Meanwhile, Q-Gold Resources Ltd., working in Mine Centre, and MetalCORP, working in Watten and Halkirk townships, also have seen positive progress.
“The amount of gold that we had over the types of widths, in the mining industry, they rank up there as very comparable to some very significant deposits that have been found in Canada in the past,” noted Bradley W. Baker of Rainy River Resources.
“It just ensures we’ll probably be there for quite some time continuing to spend quite a bit of money,” he added, saying he expects to spend anywhere from $7 million-$10 million in the coming year.
Baker also indicated there’s a possibility the positive results may attract attention from the major producing gold companies.
“So things are developing, but it’s still in a very speculative stage,” he stressed.
The Rainy River Resources project has been actively worked since the first discovery in 1987, and it’s been worked very consistently since 1992.
“So you can see how long it’s taken just to get to where we are at now,” Baker remarked. “But things are definitely accelerated in this current mining boom that we’re in and we’ve been able to raise very substantial amounts of money.
“So that accelerates the process, but it’s still going to be a multi-year process going forward.”
Baker noted the company is not surprised by the positive results.
“The president, Nelson, has always thought that this gold system was so large and important that one day we would find these types of zones that we’re finding now,” he said.
“That may sound arrogant . . . but he honestly always had that belief.”
Besides this main project, Rainy River Resources also has another one about 20 km to the northeast in the Off Lake area, as well as a third just across the border in Minnesota.
“We have done some work and will continue to work in that area in the near future,” Baker indicated. “And on the main project, we still have three drills that will be turning pretty continuously for at least the next four or five months.”
He said the company’s discovery also has caused a bit of a staking rush or area play locally, with other companies announcing they’ve acquired projects in the area.
“But they’re always comparing it to the Rainy River area itself. . . . And they use that as a promotion tool to help them gain exploration dollars,” he noted.
“So really, we’re the lead horse in the race in the area and we’re very excited about that, but a lot more attention is being brought to the area through other companies now as well as ourselves,” he enthused.
And Baker added the company is thrilled with the progress.
“It’s been absolutely fantastic, so I think the people in the area should be very excited because we feel we’ve taken it to a new level of exploration,” he stressed.
“There’s a lot of eyes watching on us right now in terms of investors, other mining companies, local communities.”
For its part, Q-Gold Resources announced last week it has completed a non-brokered flow-through private placement for gross proceeds of $1,581,804.
“It’s a really exciting time,” said exploration manager Jack Bolen. “It’s the first time anything major has been done in Fort Frances.”
The company also recently acquired two additional gold veins at Mine Centre—the McKenzie Gray and Jolly Roger veins previously owned by Nipigon Gold Resources Ltd.
It will spend a significant amount of money in the near future on drilling and will be going underground on the Foley mine.
“We’re very busy,” Bolen added. “People should be paying attention to what’s going on here—it’s important, but it’s a long process.”