Red Rock Energy Inc.
TSX VENTURE : RRK
August 31, 2009 15:06 ET
Red Rock Discovers 1,340,000 lbs U3O8 (Based on a Cut-Off Grade of 0.05%)
CALGARY, ALBERTA--(Marketwire - Aug. 31, 2009) - Red Rock Energy Inc. (TSX VENTURE:RRK) ("Red Rock") announced today that it has received two National Instrument 43-101 ("NI 43-101") compliant technical reports in respect of its new Fusion Zone property and the East Target Project. The Fusion Zone report was prepared by Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA"), while the East Target Project report, which relates to property recently acquired from Strategic Resources Inc. (formerly Uranium City Resources Inc.) ("Strategic"), was prepared by Watts, Griffis and McOuat Limited. ("WGM"). These technical reports (the "Reports") estimate an inferred mineral resource in the case of the Scott Wilson RPA report and an inferred mineral resource in the WGM report. The tables below summarize the estimates from the respective reports which were completed using accepted methods mandated by NI 43-101 and Canadian Institute of Mining, Metallurgy and Petroleum standards.
TABLE 17-3 MINERAL RESOURCE ESTIMATE Fusion Zone Project - APRIL 21, 2009
Zone Cut-off Tonnes % U3O8 Contained
% U3O8 x 1,000 U3O8 lbs x
MOF-1 0.050 320 0.114 803
MOF-1 0.075 165 0.162 591
MOF-1 0.100 94 0.221 460
MOF-2 0.050 91 0.069 139
MOF-2 0.075 23 0.100 51
MOF-2 0.100 11 0.115 28
Total 0.050 411 0.104 942
Total 0.075 188 0.155 641
Total 0.100 105 0.201 487
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at a cut-off grade of 0.075% (U)3(O)8
(within) wireframe shells of the MOF-1 and MOF-2 zones.
3. Mineral Resources are estimated using an average long-term uranium price
of (US$70/lb U)3(O)8 (and an exchange rate of US$1.00=C$) 1.20.
4. The Mineral Resources estimate was prepared using Gemcom software. A
block model was developed and grades interpolated using inverse distance
5. A density value of 2.67 tonnes/m(3) was used.
6. Figures may not add exactly due to rounding.
WGM EAST TARGET INFERRED MINERAL RESOURCES ESTIMATE (using 0.01% U3O8 Cut-
off and 1% U3O8 Composite Top-Cap)
Inferred Resources Tonnes Specific Gravity % U3O8
(0.01 to 0.02% U3O8) 109,900 2.79 0.015
(0.02 to 0.05% U3O8) 149,600 2.79 0.031
(0.05% U3O8 and up) 143,100 2.79 0.139
Total 402,600 2.79 0.065
Fusion Zone Development:
In 2008 Red Rock began a diamond drilling program on the RB2 claim group to investigate the Fusion Zone. Scott Wilson RPA visited the project on November 23-26, 2008 as part of its preparations to complete the NI 43-101-compliant Report. The drill program at the RB2 block was designed: (1) primarily to search for undiscovered uraniferous zones within the RB2 claim block; (2) to follow up selected uraniferous drill intersections found during prior drilling by other explorers; and (3) to test selected radioactive or uraniferous zones known to exist within the property. Exploration drilling by Red Rock along the projected northeasterly extension of the Cinch Lake Mine, Main Ore Fault (MOF) ductile-brittle zone, intersected two parallel, mineralized brittle fault structures designated MOF-1 and MOF-2 (collectively termed the "Fusion Zone"). Scott Wilson RPA interprets that the MOF has split into these two features, but this remains to be determined. The mineral resource estimate for the Fusion Zone on the RB2 claim block was prepared using data from 52 drill holes including historic drill holes and Red Rock's 2008 drill program with data up to April 21, 2009. A set of cross-sections and plan views were used to construct three-dimensional wireframes of the MOF-1 and MOF-2 zones. High-grade values were cut to 1.00% U3O8 prior to compositing assays into zone composites for each drill hole.
According to the subject Report, the discovery of the Fusion Zone MOF-1 and MOF-2 structures northeast of the historic Cinch Lake mine workings indicates that Red Rock's primary objective in its 2007 / 2008 drill program has been accomplished and that there is good potential to expand on the new discovery.
East Target Development:
Drilling commenced on the East Target site at the end of September 2006, concluding in the spring of 2008, by former operator UCR. The site was selected for drilling after the conducting of both airborne and ground surveys. The airborne surveys were preformed by Geotech Ltd. in the summer of 2006 for magnetic and EM profiles. A follow up ground radiometric survey was started in the fall of 2006. More than 1,340 readings were measured along the grid lines and an additional 60 readings made between the grid lines to check the extension of anomalous readings found on the grid lines. The prospects are further enhanced due to the proximity of former mining operations conducted by Eldorado Nuclear Ltd., a crown corporation which operated the Verna Mine within 500 meters of this site. UCR conducted drilling on the East Target totaling 13,224.22 M in 89 holes. Seventy-six holes were drilled on land, eleven holes were drilled on Verna Lake and two holes were drilled on the adjacent Ace Lake. WGM reprocessed the drill logs supplied by UCR staff geologists into 35 south-west cross sections to coincide with the sections interpreted by UCR geologists. Drill hole spacing across sections were on average measuring 25 and 35 m apart. In total, twenty-two northeast-looking, vertical cross-sections were defined for the East Target mineralized zone.
The WGM report recommends a 60 day follow up drilling program of 20 holes for a total of 3,000 m to increase the resources of the East Target uranium mineralization.
In discussing the Reports, Sandy Loutitt, President of Red Rock, stated: "The preparation and delivery of these Reports represents the completion of another important stage in the development plans we have set for Red Rock. The review and analysis of our exploration program and the program conducted by Strategic and the data obtained from it confirms that we are on the right path, and with a positive indication of inferred uranium resources of approx 1,340,000 lbs. (based on a cutoff grade of .05%) in hand, we are clearly justified in vigorously continuing the expansion of our activities in the Uranium City camp."
This NI 43-101 technical report, entitled "TECHNICAL REPORT ON THE FUSION URANIUM ZONE PROJECT, RB2 CLAIM GROUP, URANIUM CITY, SASKATCHEWAN, CANADA" and dated July 10, 2009, has been filed and is available for viewing in its entirety on SEDAR. The report was authored by William E. Roscoe Ph.D., P.Eng. and R. Barry Cook M.SC., P.Eng., each of whom being Qualified Persons as defined by Canadian Securities Administrators' NI 43-101, and who have reviewed and verified the technical disclosure provided in this news release.
This NI 43-101 technical report, entitled "A Mineral Resource Estimate of the East Target Project Area and A review of the Uranium Properties in Northern Saskatchewan for Uranium City Resource Inc" and dated December 15th, 2008, has been filed and is available for viewing in its entirety on SEDAR. The report was authored by Albert Workman, P.Geo., Kurt Breede, P.Eng., and David Power-Fardy, P.Geo. each of whom are Qualified Persons as defined by Canadian Securities Administrators' NI 43-101, and who have reviewed and verified the technical disclosure provided in this news release.
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