Red Rock Energy Inc.

Red Rock Energy Inc.

September 28, 2009 12:06 ET

Red Rock Energy Inc. Announces Completion of Summer, 2009 Work Program

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2009) - Red Rock Energy Inc. (TSX VENTURE:RRK) (``Red Rock``) announced today that it has successfully completed a program of summer fieldwork on its extensive landholdings in the Beaverlodge Uranium District in Northern Saskatchewan.

Much of the impetus for conducting an expanded summer program was the recent completion of additional land acquisitions from Uranium City Resources Inc. and GLR Resources Inc. by Red Rock. By virtue of these transactions, Red Rock has expanded its regional holdings from 9,668 ha in the original four claim blocks (RB1 to RB4) to a 75% or 100% interest in a total of some 74,801 ha in the heart of the Beaverlodge Uranium District (see: Commencing May 25 and ending September 4, 2009, this program included the completion of 390 field days of exploration by Red Rock personnel (two geologists, prospector and geological technologist) with and under the supervision of Red Rock`s VP of Exploration. The field work mainly comprised prospecting and geological examination of 283 reported radioactive occurrences and included a ground check of in excess of 290 old trenches that had been excavated by prior explorers from the late 1940s to the early 1980s. This work was mainly performed north and northwest of the former Eldorado Nuclear Limited Ace-Fay-Verna mines, and in the vicinity of the former Gunnar mine at the southwest end of the Crackingstone Peninsula. The follow-up work identified over a dozen radioactive targets that warrant further assessment, including assembly and review of publicly available assessment and other exploration data, in order to determine next steps for further fieldwork which may include drill testing. These newly identified targets are in addition to those previously identified within Red Rock's original core claim holdings within the RB1 to RB4 claim blocks.

Red Rock also conducted detailed geological mapping at four selected locales, including the East Target uranium zone. This area was the subject of the August 31, 2009 press release advising that Watts, Griffis and McOuat Limited (WGM) had calculated a NI 43-101 compliant resource at a cut-off grade of 0.05% U3O8 to be 143,100 tonnes with an average grade of 0.139% U3O8, or about 438,500 lbs U3O8. In addition, detailed geological mapping was done by a Queens University doctoral candidate at the Lake Cinch Fusion Zone target area, and this work has been provided to Red Rock. The detailed geological mapping will be highly useful to assist with the planning for future drill testing at both the East Target and Fusion Zone.

Sandy Loutitt, President of Red Rock, commented that ``The results from the summer field program, coupled with the data assembly, review and interpretation that Red Rock will be complete during fall/winter 2009, will set the stage for completing new drilling programs in 2010 at our highest priority targets. Thanks to the substantial expansion of prospective land holdings that we completed this year, Red Rock now has effective control of the majority of the Beaverlodge Uranium District. The information culled from our summer program already indicates that the exploration potential of both our existing and new lands is significant.``

Red Rock also announced today that Tim Termuende, a director of the corporation, has submitted his resignation effective immediately.

Reg A. Olson, Ph.D., P. Geol., a Qualified Person under NI 43-101 and supervisor of the 2009 field exploration, has reviewed and is in agreement with the contents of this release.


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.


Contact Information

  • Red Rock Energy Inc.
    Sandy Loutitt
    (403) 685-1047
    Red Rock Energy Inc.
    Lara Cull
    Operations Manager
    (403) 685-1047