If Eagle Graphite does go public, I see a great chance of a JV with the new claims aquired by RBW last month in the Valhalla Metamorphic Complex...

Slocan Valley Flake Graphite Project

The Slocan Valley, thanks to very unique geological processes, is very prospective for high quality, near-surface flake graphite and features western North America's only producing natural flake graphite mine which is operated by privately-held Eagle Graphite Corporation. The potential world class deposit is 21 kilometres due west of Rainbow's Gold Viking Property, part of the Big Strike Gold-Silver Project, while Eagle Graphite's processing plant (mill site) is approximately 20 km to the south near Nelson (see map below).

Eagle Graphite is the largest landholder in the area (their claims include ground contiguous to Gold Viking) but Rainbow has recently positioned itself with two large strategic claim blocks in the heart of the Valhalla Metamorphic Complex (prospecting has already started on these claims). Flake graphite occurrences have been reported over a nearly 30-km north-south stretch of this under-explored region that has the potential of becoming one of the world's largest flake graphite districts with a processing plant already in place.

Eagle Graphite's mine site in the Slocan Valley

"We plan to grow our production capacity several times over," stated Jamie Deith, President of Eagle Graphite, in a recent interview with Resource World Magazine. "Demand for our product is very strong, and we want to use this opportunity to establish ourselves as a leading producer. It will require a moderate amount of capital to get there, but we feel that the market is becoming increasingly receptive to graphite mining."

Rainbow holds a 12.5-km-long claim block, totalling 2,100 hectares and flanked on either side by Eagle Graphite claims, beginning five km northeast of Eagle Graphite's mill site and immediately north of the highly prospective Blu Starr Property. Anglo-Swiss reported May 9, 2012, that up to 15% graphite has been mapped in outcrop over the northern part of its Blue Starr Property and appears to be associated with a 3-km-long electromagnetic (EM) anomaly identified in an airborne geophysical survey completed in 2010. Less than 25% of the property was covered by the airborne survey.

Rainbow also holds a 9-km-wide claim block, also totalling 2,100 hectares, contiguous to the southern boundary of Blu Starr.

"It appears that part of the Slocan Valley - the Valhalla Metamorphic Complex - has undergone some very unique geological processes that have created highly favourable conditions for high quality, near-surface flake graphite," explained Rainbow President David W. Johnston. "The host rocks are ideal. Something special has been cooked up here. Rainbow has the boots on the ground and the right geological team to take advantage of this graphite opportunity in the immediate vicinity of our flagship Big Strike Project."