Exall Resources Limited
TSX : EXL

Exall Resources Limited

August 29, 2005 16:29 ET

Exall Resources Limited: 28.47 G/T Over 11.70 M '0.83 Ozs/t Over 38.39 Feet' Cut By DDH BC10-1 New High Grade Gold Structure Discovered At Gold Eagle Mine Property, Red Lake, ON

TORONTO, ONTARIO--(CCNMatthews - Aug. 29, 2005) - Exall Resources Limited (TSX:EXL) and Southern Star Resources Inc. (TSX VENTURE:SSR) announced today the intersection of a significant mineralized gold structure discovered during the current Bruce Channel drill program at the Gold Eagle Mine Property in Red Lake, Ontario. Drill hole BC10-1 and BC10-2, were designed to test the vertical continuity and extent of the gold mineralization encountered in DDH BC4. From May 27 to August 13, 2005 approximately 2,700 metres of drilling was completed. Structural continuity can be seen over a current vertical distance of 350 metres from DDH BC4 through BC10-1 and BC10-2. Drill hole BC10-3 is now being drilled between BC10-1 and BC10-2. Subsequent drilling is expected to be targeted below drill hole BC10-1 which has intersected the highest grades and thickest widths found on the Gold Eagle Mine Property to date. The structure remains open at depth and along strike.

The highlights of the drill program include:

DDH BC10-1:

- Between 1,080 metres and 1,596 metres (hole stopped in mineralization) drilling encountered a 516 metre intersection with multiple high grade gold zones and contiguous anomalous gold throughout;

- The Balmer Assemblage, host to Goldcorp's Red Lake Mine, was intersected starting at a down hole depth of 518 metres;

- From 1234.03 to 1245.73 metres this hole graded 28.47 grams/tonne over 11.70 metres (0.83 ounces/ton over 38.39 feet) including a section of 3.77m @ 10.67 g/t (12.37 ft @ 0.31 oz/t) and another section of 2.99m @ 98.86 g/t (9.81 ft @ 2.83 oz/t). The section in between these two carried gold values of 4.94m @ 0.67 g/t (16.21 ft @ 0.02 oz/t) in the same rock unit as the two higher grade sections referred to above.

DDH BC10-2:

- From 1,250.42 to 1,260.66 intersected 10.24 metres grading 6.57 g/t (0.19 oz/t over 33.6ft);

- From 1,456.98 to 1,459.55 intersected 2.57 metres grading 42.37 g/t (1.24 oz/t over 8.43 ft);

- This hole intersected the target area at an elevation 150 metres above BC10-1 and encountered the same mineralized zones showing structural continuity through to the initial intersection encountered in BC4, 200 metres above BC10-2.

The significant results are as follows:



BC10-1 (Dip - 74 Degrees, Azimuth 347 to 010 Degrees)

-------------------------------------------------------------
Intersection
(in Metres) Length Gold
-------------------------------------------------------------
Grams Ounces
per per
From To Metres Feet tonne ton
-------------------------------------------------------------
-------------------------------------------------------------
933.00 933.63 0.63 2.07 3.41 0.10
-------------------------------------------------------------
1080.92 1083.70 2.78 9.12 3.12 0.09
-------------------------------------------------------------
1087.74 1093.80 6.06 19.88 4.44 0.13
-------------------------------------------------------------
1095.00 1096.20 1.20 3.94 5.15 0.15
-------------------------------------------------------------
1098.95 1101.00 2.05 6.73 2.29 0.07
-------------------------------------------------------------
1121.20 1122.41 1.21 3.97 2.58 0.08
-------------------------------------------------------------
1125.75 1131.40 5.65 18.54 3.20 0.09
-------------------------------------------------------------
1137.00 1138.27 1.27 4.17 112.13 3.27 VG
-------------------------------------------------------------
Including 0.35 1.15 373.51 10.89
-------------------------------------------------------------
1141.10 1143.95 2.85 9.35 2.23 0.07 VG
-------------------------------------------------------------
1172.37 1173.62 1.25 4.10 32.98 0.96 VG
-------------------------------------------------------------
Including 0.63 2.07 62.05 1.81
-------------------------------------------------------------
1196.50 1198.52 2.02 6.63 6.70 0.20 VG
-------------------------------------------------------------
1234.03 1237.80 3.77 12.37 10.67 0.31
-------------------------------------------------------------
Including 0.65 2.14 34.18 0.98
-------------------------------------------------------------
1242.74 1245.73 2.99 9.81 96.86 2.83 VG
-------------------------------------------------------------
Including 0.24 0.79 973.90 28.41
-------------------------------------------------------------
1346.10 1346.40 0.30 0.98 394.05 11.51 VG
-------------------------------------------------------------
1368.58 1371.46 2.88 9.45 37.40 1.09 VG
-------------------------------------------------------------
Including 0.39 1.28 109.04 3.18
-------------------------------------------------------------
Including 0.28 0.92 176.16 5.14
-------------------------------------------------------------
1409.10 1409.80 0.70 2.30 22.01 0.64
-------------------------------------------------------------
1411.13 1411.95 0.82 2.69 15.13 0.44 VG
-------------------------------------------------------------
1438.85 1439.21 0.36 1.18 14.23 0.42 VG
-------------------------------------------------------------
1503.85 1504.50 0.65 2.13 4.32 0.13
-------------------------------------------------------------
1519.60 1520.40 0.80 2.62 6.11 0.18
-------------------------------------------------------------
1526.25 1527.24 0.99 3.25 9.08 0.27 VG
-------------------------------------------------------------

BC10-2 (Dip - 64 Degrees, Azimuth 333 to 353 Degrees)

Intersection
(in Metres) Length Gold
-------------------------------------------------------------
Grams Ounces
per per
From To Metres Feet tonne ton
-------------------------------------------------------------
-------------------------------------------------------------
1240.00 1242.00 2.00 6.56 5.17 0.15 VG
-------------------------------------------------------------
1250.42 1260.66 10.24 33.60 6.57 0.19 VG
-------------------------------------------------------------
Including 0.46 1.51 47.10 1.37
-------------------------------------------------------------
Including 0.31 1.02 20.64 0.60
-------------------------------------------------------------
Including 0.72 2.36 31.81 0.93
-------------------------------------------------------------
1262.88 1264.35 1.47 4.82 21.59 0.63 VG
-------------------------------------------------------------
1277.38 1282.16 4.78 15.68 1.58 0.05 VG
-------------------------------------------------------------
1290.60 1291.80 1.20 3.94 2.85 0.08
-------------------------------------------------------------
1381.60 1384.55 2.95 9.68 2.00 0.06
-------------------------------------------------------------
1439.48 1444.81 5.33 17.49 3.72 0.11 VG
-------------------------------------------------------------
1456.98 1459.55 2.57 8.43 42.37 1.24 VG
-------------------------------------------------------------
Including 0.42 1.38 246.85 7.20
-------------------------------------------------------------
1462.88 1463.38 0.50 1.64 16.39 0.48
-------------------------------------------------------------
1464.67 1465.00 0.33 1.08 11.07 0.32 VG
-------------------------------------------------------------
1468.85 1470.34 1.49 4.89 2.65 0.08 VG
-------------------------------------------------------------


Notes:

- VG - Visible gold

- Lengths reported are core intersection lengths and do not represent true widths. It is anticipated that true width estimates will be possible after additional drilling.

- Conversion: g/tonne x 0.0292 = Troy ozs. / short ton. Trace mineralization noted includes Po, Py, Cpy, AsPy and coarse visible Gold.

The Bruce Channel target area of the Gold Eagle Mine Property lies at the meeting point of two of the major gold bearing trends present in the Red Lake mining camp. From the east runs a major trend hosting Goldcorp's Red Lake, Placer Dome's Campbell and the Cochenour-Willans mines. From the north east runs the East Bay trend which hosts several currently active large scale exploration projects (Wolfden/Placer Dome, Rubicon Minerals, etc.) and past producers (Marboy, Abino etc.).

Qualified Person

The Gold Eagle Mine Property drill program is being carried out under the direction of Mr. John F. Whitton, P.Geo, the qualified person within the meaning of National Instrument 43-101. Mr. Whitton has reviewed the contents of this news release.

Sample preparation and assay procedures are carried out by SGS Laboratories in Red Lake using standard fire assay method with AA finish and metallics.

Independent View

Mr. Chester J. Kuryliw, M.Sc., P.Eng., a consulting geologist to the Gold Eagle Mine Property Joint Venture, noted "the deep drill results indicate a broad trend of fracturing that is flooded with gold, of much significance is that the gold flooding is continuous over the tested area. It is also significant and encouraging that the habit of the richest gold intersections occurs together with a light bluish vitreous quartz. The richest gold ores mined at Goldcorp's Red Lake and Cochenour mines and Placer Dome's Campbell mine contained such bluish quartz. The structural control of the richest gold shoots within the broad, continuous trend is yet uncertain, but, rich drill intersections have been intersected, which augurs well for the occurrence of rich gold structures." Mr. Kuryliw was the Chief Mine Geologist and Mine Superintendent at the Cochenour-Willans gold mine and did underground mapping and consulting at the McKenzie Red Lake Mine in Red Lake, Ontario during the 1950's and early 1960's. These two mines form the eastern and northern boundaries, respectively of the Gold Eagle Mine Property and are now controlled by Goldcorp Inc.

Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL (S.E.C. registration #82-3535). Exall is active in its business of gold exploration and development in Red Lake, Ontario, as well as oil and gas exploration, development and production from its properties in Alberta, British Columbia and Texas.

There are currently 56.9 million common shares issued and outstanding.

Contact Information

  • Exall Resources Limited
    Stephen G. Roman
    Chairman, President and CEO
    (416) 368-3949