Red Rock Energy Inc.
TSX VENTURE : RRK

Red Rock Energy Inc.

October 24, 2007 17:46 ET

Red Rock Releases Results of Drilling Campaigns #1 & #2

CALGARY, ALBERTA--(Marketwire - Oct. 24, 2007) - Red Rock Energy Inc. (TSX VENTURE:RRK) announced today that as of October 17, 2007 it had completed Diamond Drilling Campaign #2 at its Red Block 1 property in the Uranium City area. On September 22, Red Rock released partial assay results from its initial Diamond Drilling Campaign #1 which was completed by end August, 2007. The total metres drilled to date is 3095.7 m in 14 holes, with 1705.9 m completed in 5 holes (07RB1-010 to 07RB1-014) during drilling campaign #2 and 1389.8 m completed in 9 holes (07RB1-001 to 07RB1-009) during drilling campaign #1. Table 1 summarizes selected information about each drill hole which has been completed to date, and the approximate locations of each hole are shown in Figure 1.



Table 1: Selected Information for DDH Completed During Drilling Campaigns #1
and #2

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Campaign DDH Identifier Collar Azimuth Collar End of Hole
Inclination Length (metres)
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1 07RB1-001 330º -55º 169.0
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1 07RB1-002 333º -45º 122.0
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1 07RB1-003 328º -46º 122.5
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1 07RB1-004 328º -70º 160.5
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1 07RB1-005 330º -45º 129.7
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1 07RB1-006 150º -45º 136.8
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1 07RB1-007 150º -45º 118.8
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1 07RB1-008 360º -45º 245.6
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1 07RB1-009 360º -45º 184.9
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2 07RB1-010 360º -45º 361.6
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2 07RB1-011 360º -47º 286.3
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2 07RB1-012 330º -65º 302.9
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2 07RB1-013 Vertical -90º 471.2
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2 07RB1-014 095º -47º 283.8
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The drilling program to date was principally designed to follow-up prior drill intersections by others (i.e., the former crown corporation Eldorado Nuclear Limited) and to search for undiscovered uraniferous zones within Red Rock's Red Block 1 mineral property. A total of 764 drill core samples have been submitted for analysis (756 samples for uranium and 8 samples for gold). To mid-October results have been received for 571 samples, which are the complete results for the first 10 holes, specifically holes 07RB1-001 to 07RB1-010. Results are expected shortly for holes 07RB1-011 to 07RB1-014.

Figure 1: Red Rock Energy Drilling Completed during Campaigns #1 and #2 (coordinates are UTM, Zone 12, NAD 83 datum): http://www.ccnmatthews.com/docs/RedRockFigure1.pdf.

Uranium result highlights for each of these ten holes, with all intervals being core length, are provided in Table 2. The eight samples that were submitted for gold assay all returned low results.

The uranium result highlights in Table 2 indicate that the drilling to date within Red Block 1 has: (a) intersected anomalously uraniferous zones with widths up to several metres or more, and (b) at least locally there are uranium grades ranging from 0.10% to over 0.30% U3O8, which are the range of grades typical for most of the past producing mines in the Beaverlodge Uranium District. The uraniferous intercepts are associated with intensely cataclasticized leucocratic to melanocratic (mafic poor to mafic rich) gneiss and granitoid rocks, and with various major to secondary faults. Figure 2 illustrates a section for two holes (07RB1-009 and 07RB1-010) that were drilled to test the anomalously radioactive Red Fault zone. The figure shows that the anomalously radioactive intervals continue to depth, and one zone may be widening with depth and possibly controlled by the intersection of the Red Fault with either or both the Baseline and Donaldson faults. It is planned during Drilling Campaign #3, which will begin in early November 2007, to further test the strike and depth potential of the Red Fault radioactive zone.

Figure 2: Preliminary Section for DDHs 07RB1-009 & 07RB1-010; shows anomalous radioactivity (red histogram) and uranium assay results (black histogram): http://www.ccnmatthews.com/docs/RedRockFigure2.pdf.

The Red Rock drilling and geological team will be redeployed to Uranium City on November 1 to continue drill testing selected targets on Red Block 1 from early November to mid-December 2007. Further, after a break for the Christmas - New Year holidays, drilling will resume in mid-January 2008.

In reviewing the drill results from these ten holes, Sandy Loutitt, President of Red Rock, was pleased with the results recorded to date, and commented: "These results are encouraging in light of the fact that the Beaverlodge Uranium District's thirty years of uranium production (approximately 62 million pounds in total) from the 1950s to early 1980s was predominantly from narrow vein structures ranging from about 1 to 2 m (2 to 6 feet). It appears clear that the grades and widths intersected by Red Rock's current drilling program are consistent with the historic geological setting of the Beaverlodge mining camp.

"The principle exploration and development philosophy of Red Rock is a) to conduct exploratory and follow-up drilling to generate targets that have intersections of U3O8 indicating the presence of prospective uranium mineralized zones, and b) to attempt to determine if selected zones have sufficient extension and grade to begin to classify the uranium-bearing bodies into economically viable resources and reserves categories as required by National Instrument 43-101. At this initial stage of exploration all the holes tested to date have assay results that indicate at least one or more radioactive uraniferous zone. This provides encouragement that the chemical and mechanical processes necessary to create uranium ore bodies are present within the areas drilled. However, the progression of these zones to resource definition will not begin until a clearer picture of the geological setting and confirmation of the geological model being employed are determined."



Table 2: Drilling Highlights from Red Rock Energy Inc. Drill Campaigns #1
(holes 07RB1-001 to 07RB1-009) and #2 (hole 07RB1-010 only)

Hole From (m) To (m) Core Length Average Results
(m) Grade U3O8 Received
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07RB1-001 25.00 25.60 0.60 0.338% Complete
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07RB1-001 43.00 44.00 1.00 0.205% Complete
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07RB1-001 106.0 108.5 2.50 0.083% Complete
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07RB1-001 121.30 123.20 1.90 0.159% Complete
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07RB1-002 65.00 65.70 0.70 0.061% Complete
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07RB1-002 70.25 71.85 1.60 0.049% Complete
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07RB1-002 86.20 92.00 5.80 0.037% Complete
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Including
07RB1-002 90.70 92.00 1.30 0.086%
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07RB1-003 19.50 20.50 1.00 0.049% Complete
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07RB1-003 30.00 35.60 5.60 0.046% Complete
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Including
07RB1-003 34.50 35.60 1.10 0.109%
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07RB1-004 25.20 25.80 0.60 0.619% Complete
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07RB1-004 27.10 27.40 0.30 0.354% Complete
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07RB1-005 32.50 36.80 4.30 0.064% Complete
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Including
07RB1-005 34.60 36.80 2.20 0.083%
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07RB1-006 22.65 24.40 1.75 0.166% Complete
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Including
07RB1-006 23.25 24.15 0.90 0.268%
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07RB1-007 11.00 15.70 4.70 0.033% Complete
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07RB1-007 16.85 19.50 2.65 0.057% Complete
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07RB1-007 22.80 23.10 0.30 0.201% Complete
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07RB1-007 78.70 80.00 1.30 0.041% Complete
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Including
07RB1-007 79.20 79.50 0.30 0.114%
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07RB1-008 45.50 57.10 11.60 0.020% Complete
----------------------------------------------------------------------------
Including
07RB1-008 55.10 56.60 1.50 0.058%
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07RB1-008 102.10 104.60 2.50 0.118% Complete
----------------------------------------------------------------------------
Including
07RB1-008 103.60 104.50 1.00 0.221%
----------------------------------------------------------------------------
07RB1-008 143.00 144.20 1.20 0.160% Complete
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07RB1-008 195.30 196.00 0.70 0.103% Complete
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07RB1-008 199.50 200.50 1.00 0.058% Complete
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07RB1-009 4.60 9.60 5.00 0.067% Complete
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Including
07RB1-009 5.93 8.93 3.00 0.090%
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07RB1-009 21.93 22.93 1.00 0.056% Complete
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07RB1-009 37.93 40.27 2.34 0.131% Complete
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Including
07RB1-009 38.60 40.27 1.67 0.166%
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07RB1-009 100.93 101.60 0.67 0.130% Complete
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07RB1-010 50.20 50.70 0.50 0.141% Complete
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07RB1-010 109.50 126.80 17.30 0.034% Complete
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Including
07RB1-010, 118.70 119.20 0.50 0.102%
and
----------------------------------------------------------------------------
Including
07RB1-010 126.30 126.80 0.50 0.149%
----------------------------------------------------------------------------
07RB1-010 136.30 139.80 3.50 0.049% Complete
----------------------------------------------------------------------------
07RB1-010 158.30 159.80 1.50 0.053% Complete
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Reg A. Olson, Ph.D., P. Geol., a Qualified Person under NI 43-101 and supervisor of the 2007 field and drill program, 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.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Red Rock Energy Inc.
    Sandy Loutitt
    President
    (403) 685-1047
    or
    Red Rock Energy Inc.
    Lara Cull
    Operations Manager
    (403) 685-1047
    Website: www.redrockenergy.ca