Post says Rainy River results win Zerb exclamation

2010-01-20 09:39 ET - In the News

The Financial Post reports in its Wednesday edition this is high-grade gold. The Post's Peter Koven, writing in Trading Desk, says that on Monday, Rainy River Resources said it intercepted a spectacular 352.84 grams per tonne of gold over six metres in drilling at its Beaver Pond discovery in Ontario. That includes a three-metre intercept 701.29 grams per tonne. The discovery is part of the company's Rainy River gold project. Canaccord Adams analyst Wendell Zerb used one word to describe it: "Wow!" He added in a note to clients: "A high-grade component at Rainy River could be an important economic addition to the currently envisioned mine plan. However, there have been individual high-grade intercepts on the Rainy property in the past we'll be looking for continuity of this new zone with additional drilling." Michael Gray at Genuity Capital added that these "bonanza grade" intersections "attest to the very high grade potential of the Rainy River gold system." Previously, he did not include Beaver Pond and two other gold zones into his calculation. Given the strong results, he added two million ounces of exploration upside into his valuation. Both analysts target the stock at $6.75.