Max

The Max Property is located in North-Western Ontario, 60 km south of the Highbank Lake project and 100 km south of the Ring of Fire Ni-Cu-PGE and Chromite deposits and immediately adjacent to Northern Shield’s Wabassi property. The property is being explored for disseminated PGE and, massive sulphide Ni-Cu-PGE mineralization. The proposed route to access the Black Thor and Black Label chromitite deposits in the “Ring of Fire,” now owned by Cliffs Natural Resources, passes close to the Max property.

The Max property is a joint venture between Rainy Mountain Royalty Corp (formerly East West Resource Corp and Northern Shield as operator. Northern Shield holds a 60% interest.

Six drill holes totaling 2,998 meters were completed at Max over the summer and fall of 2008. The main target was a 3 x 1 km magnetic anomaly interpreted to represent an ultramafic body that could contain nickel-copper-PGE mineralization. Drilling confirmed the presence of an ultramafic intrusion composed mostly of olivine-rich peridotite. Five of the drill holes targeted this body with a sixth hole testing an EM anomaly to the east of the intrusion. Nickel and copper mineralization were seen in all holes drilled into the eastern contact of the intrusion (08MX-01, 02, 05 and 06).

The average Pt + Pd and Ni content of 107 drill core samples from the Max intrusion are 45 ppb and 1600 ppm respectively, indicating mantle composition that is very fertile in nickel and PGEs. Most of the samples collected so far from the upper levels of the Wabassi layered intrusion show depleted levels of nickel and PGEs. If the two intrusions are related, as is supported by the geochemistry, a model suggesting that the Max ultramafic intrusion is the “upstream” portion and the Wabassi mafic intrusion the “downstream” portion of a continuous system can be strongly advocated. This model implies significant potential to find Ni-Cu-PGE mineralization in a conduit between the two bodies or in the lower levels of the Wabassi intrusion.

New Geophysical Modeling

Modeling of the Max geophysical data has identified a subtle but significant VTEM conductor on the southern fringe of the Max peridotite body. It is associated with an irregular shaped magnetic trend that appears to be a feeder conduit from the peridotite. Further west along this possible conduit is a zone of higher magnetism that correlates to a possible “IP Effect” from the VTEM survey. This suggests the presence of possible disseminated sulphides. This target may be akin to Magma Metals PGE deposit near Thunder Bay, which is also hosted in a narrow conduit in association with disseminated sulphides.