Rainy River Resources

A Family Story

Rainy River Resources Ltd., is a well-financed junior exploration company operating out of Vancouver, with a exploration story unparalleled in the Canadian resource landscape. The story begins with prospector Walter Baker in the 1920’s, and continues today with a management team that has a combined experience spanning more that 200 years. Gold exploration is Rainy River’s trade, but experience is their trademark.

In the 20’s, Baker made tremendous discoveries that had a big impact on the mining industry – especially in the Hemlo and Thunder Bay regions. His success sparked the interest of future generations of Bakers. The Baker sons grew up with a deep interest in finding “the next big mine”. Nelson Baker, the eldest Baker son, and current President, explains that the Rainy River family is what really sets the company apart from its competitors. “We started exploring so long ago” he says. Baker tells the story about Rainy River affectionately, because to him, it’s all about family. The senior Baker, Walter, made two significant discoveries between 1963 and 1964, one being the only significant palladium discovery in the country. The other big one was a significant gold horizon in the Hemlo area. Baker says that when that discovery took off, he decided to move to the consulting side of the mining business. The Rainy River project was part of a variety of projects a group of companies were looking at the beginning of this decade – and that is how Baker came to know Rainy River.

The former owners of the project were not operating in a time when gold prices were good. But the current management team saw that the trend would end – so Rainy Resources acquired the project and the rest, as they say, is history. “We took 100 per cent ownership of Rainy River in 2005, and we’ve had a lot of success since,” says Baker.

The next big discovery
It was the partnership between Stu Averill, a geologist, and the Bakers, that really made the Rainy River project worthwhile. Averill’s state-of-the-art technologies demonstrated that the areas where the company were exploring had an “unusually high gold footprint under glacial cover” according to Baker. Other companies, he says, backed off of the area because exploring was difficult, and costly. Luckily, Averill had the technology to make it feasible. With his help, Baker says his aspirations came true. “All of ourcareers, like my dad, we wanted to find a mineral discovery that would be an important part of Canadian mineral history – and this one looks like it could be.”

The Baker family has had tremendous success exploring the discovery area. Baker’s son Brad now heads up the investor side of the business, and Baker is happy that Rainy River has really “kept it all in the family”.

Baker says that exploring in the poorly exposed areas in Canada is possible if a company has the technology to “see where the favourable deposits are”. Rainy River has developed a technology that is able to trace mineral grains (gold, diamonds, copper, and zinc) that don’t come to the surface but are traced quickly to their source with very little budget – and effort. “We can take areas that were previously looked at in a cursory manner by majors, and quickly see if they’ve missed something by employing our ‘state of the art technology’. Our plan, going forward is to focus in areas that have the right geology to host mineral deposits with great infrastructure and especially where there are roads and ready made workforces. We plan to explore in areas that have been overlooked by majors with lots of room for new, large-scale mineral discoveries” Baker explains. Exploring in areas of good infrastructure greatly lowers overall exploration costs.

Keeping it in the family
Baker says that “a lot of companies are exploring in remote areas because of their potential”. He continues “but the thing is that a lot of young geologists want to be close to their families. To fly field staff to remote areas – 14 days in and 14 days out – really wreaks havoc on family life. We don’t want to do that. That’s why we prefer to focus in areas with well-established infrastructure and excellent geology. You can attract really strong miners and geologists that way”.

The company has gone out of its way to maintain strong ties to the community, even purchasing a CT scanner for a local hospital, and establishing good communications with the local First Nations groups. “We’re well-respected, and have established good will in a wholesome, family community way,” Baker beams.

Ties that bind
The company holds regular meetings with the local community where they are invited to come in to see what they’re doing. The net result is that we feel that we are already part of the community and that the Rainy River project is highly regarded. “We don’t bring people in from outside the area unless that person has a special expertise. We give most of the work to local people. We have several on our field staff and all of them have been with us since we started in 2005” Baker says. In addition to sponsoring a local hockey team, the Rainy River Rockets, the company purchases most of supplies for the project from local suppliers of lumber, gravel, office supplies and field equipment when necessary.

Concluding his story, Baker says “this is a great success story because of the team we have assembled to explore this complex gold system. Like a great hockey team, everyone involved with this project has contributed to its success! With only a small part of this gold system explored so far, we’ll continue to do well into the future”. The company currently has enough cash to explore the project aggressively for another two years before needing to raise extra funds.

For more information, see the company’s website at www.rainyriverresources.com.

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