Red Rock Extends Fusion Uranium Zone Up Dip
01 October 2008 - 4:30AM
Marketwired Canada
Red Rock Energy Inc. (TSX VENTURE:RRK) announced today that the latest
analytical results from the 2008 Diamond Drilling Campaign confirm an up-dip
extension of the Fusion Zone along the Lake Cinch Main Ore Fault. This discovery
is of particular significance given that the Lake Cinch Main Ore Fault structure
hosted the bulk of the historic production by former mine operator Lake Cinch
Mines Ltd. Red Rock's Fusion Zone is located on the same structure and in close
proximity to the former underground workings.
From July 26 to August 19, 2008 RRK continued to drill the up-dip extensions of
the Fusion uranium zone, which is associated with a relatively wide shear zone
named the Cinch MOF, in holes 08RB2-17 to 08RB2-26 and the down-dip extension at
one locale in hole 08RB2-27. The core samples from holes 08RB2-23 to 08RB2-27
have been submitted for analysis for uranium and the results are expected
shortly. RRK moved the drill rig from Cinch to the vicinity of the former Cenex
underground mine in late August and to September 29 has drilled a total of
1,608.3 in 6 holes (08RB2-28 to 08RB2-33) at Cenex. Two more holes (08RB2-34 &
08RB2-35) will be drilled at Cenex between now and mid October.
Red Rock Energy continues to be encouraged by the results to date from 2008
drilling that has continued to expand the Fusion uranium zone. Specifically, the
results in Table 1 indicate the Fusion Zone may well extend up-dip some 350 m in
the plane of the Cinch Main Ore Fault Zone (MOF). Red Rock Energy plans to
re-start drilling on the Fusion zone during October to drill selected infill
holes so that a resource estimate for the Fusion Zone can be completed during
early 2009. The presence of cross fracture intersections, grading in this series
of holes up to 0.3% (6 lbs/ton) over 1 metre of core length, provides additional
geological encouragement for opportunities to expand the Fusion Zone.
Reg A. Olson, Ph.D., P. Geol., a Qualified Person under NI 43-101 and supervisor
of the 2007 and 2008 field exploration and drill programs, has reviewed and is
in agreement with the contents of this release.
READER ADVISORY
Statements in this press release may contain forward-looking information
including expectations of future production, operating costs, commodity prices,
administrative costs, commodity price risk management activity, acquisitions and
dispositions, capital spending, access to credit facilities, income taxes,
regulatory changes, and other components of cash flow and earnings. The reader
is cautioned that assumptions used in the preparation of such information may
prove to be incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, a result of numerous known and unknown
risks, uncertainties, and other factors, many of which are beyond the control of
the company. These risks include, but are not limited to, the risks associated
with the mining industry, commodity prices and exchange rate changes. Industry
related risks could include, but are not limited to, operational risks in
exploration, development and production, delays or changes in plans, risks
associated to the uncertainty of reserve estimates, health and safety risks and
the uncertainty of estimates and projections of production, costs and expenses.
The reader is cautioned not to place undue reliance on this forward-looking
information.
The reader is further cautioned that the preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make certain judgements and estimates that affect the reported amounts of
assets, liabilities, revenues and expenses. Estimating reserves is also critical
to several accounting estimates and requires judgments and decisions based upon
available geological, geophysical, engineering and economic data. These
estimates may change, having either a negative or positive effect on net
earnings as further information becomes available, and as the economic
environment changes.
Table 1: Highlights from Red Rock Energy Inc. 2008 Drill Campaign for holes
08RB2-17 to 08RB2-22
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Hole UTM UTM Collar From To
Easting(1) Northing Azimuth/ (m) (m)
(1) Inclination
----------------------------------------------------------------------------
08RB2-17 632127 6603265 310 Degrees/ 18.00 19.50
-50 Degrees
----------------------------------------------------------------------------
08RB2-17 50.50 53.50
----------------------------------------------------------------------------
Including 50.50 51.50
08RB2-17
----------------------------------------------------------------------------
08RB2-18 632127 6603265 310 Degrees/ 103.00 104.00
-85 Degrees
----------------------------------------------------------------------------
08RB2-19 632167 6603297 310 Degrees/ 114.50 115.50
-50 Degrees
----------------------------------------------------------------------------
08RB2-20 632167 6603297 310 Degrees/ 110.00 112.50
-85 Degrees
----------------------------------------------------------------------------
Including 110.50 111.50
08RB2-20
----------------------------------------------------------------------------
08RB2-21 632210 6603326 310 Degrees/ 25.00 32.50
-50 Degrees
----------------------------------------------------------------------------
Including 30.50 31.50
08RB2-21
----------------------------------------------------------------------------
08RB2-21 94.00 98.50
----------------------------------------------------------------------------
Including 94.00 96.50
08RB2-21
----------------------------------------------------------------------------
08RB2-21 128.00 129.00
----------------------------------------------------------------------------
08RB2-22 632210 6603326 310 Degrees/ 111.00 113.50
-84 Degrees
----------------------------------------------------------------------------
08RB2-22 136.00 147.50
----------------------------------------------------------------------------
Including 136.00 141.00
08RB2-22
----------------------------------------------------------------------------
Including 136.00 138.00
08RB2-22
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Hole Core Average Pound Intersection Type
Length Grade Per
(m) U3O8 Ton
----------------------------------------------------------------------------
08RB2-17 1.50 0.075% 1.5 Cross- fracture(3) in
hanging wall
----------------------------------------------------------------------------
08RB2-17 3.50 0.024% .48 Cinch MOF(4)
----------------------------------------------------------------------------
Including 1.00 0.052% 1.0 Cinch MOF
08RB2-17
----------------------------------------------------------------------------
08RB2-18 1.00 0.024% .48 Cinch MOF
----------------------------------------------------------------------------
08RB2-19 1.00 0.0545 1.0 Cinch MOF
----------------------------------------------------------------------------
08RB2-20 2.50 0.050% 1.0 Cinch MOF
----------------------------------------------------------------------------
Including 1.00 0.085% 1.7 Cinch MOF
08RB2-20
----------------------------------------------------------------------------
08RB2-21 7.50 0.062% 1.24 Cross- fracture in
hanging wall
----------------------------------------------------------------------------
Including 1.00 0.300% 6.0 Cross- fracture in
08RB2-21 hanging wall
----------------------------------------------------------------------------
08RB2-21 4.50 0.082% 1.64 Cinch MOF
----------------------------------------------------------------------------
Including 2.50 0.137% 2.74 Cinch MOF
08RB2-21
----------------------------------------------------------------------------
08RB2-21 1.00 0.180% 3.6 Cross- fracture in
footwall
----------------------------------------------------------------------------
08RB2-22 2.50 0.056% 1.1 Cross- fracture in
hanging wall
----------------------------------------------------------------------------
08RB2-22 11.50 0.051% 1.0 Cinch MOF
----------------------------------------------------------------------------
Including 5.00 0.079% 1.6 Cinch MOF
08RB2-22
----------------------------------------------------------------------------
Including 2.00 0.097% 1.94 Cinch MOF
08RB2-22
----------------------------------------------------------------------------
(1) Note: UTM Eastings and Northings are given for a datum of NAD83,
Zone 12N
(2) Note: m asl refers to approximate metres above sea level
(3) Note: Cross-fracture refers to uranium bearing structures that exist
in the hangingwall or footwall of the Cinch Main Ore Fault; in the
former Cinch Lake Mine, some of these uranium-bearing cross-fractures
provided minerable reserves
(4) Note: Cinch MOF means Lake Cinch Main Ore Fault or Shear Zone, which was
an important ore producer in the former Cinch Lake Mine