Red Rock Energy Inc.
TSX VENTURE : RRK

Red Rock Energy Inc.

September 08, 2008 14:08 ET

Red Rock Extends Fusion Zone Down Dip

CALGARY, ALBERTA--(Marketwire - Sept. 8, 2008) - Red Rock Energy Inc. (TSX VENTURE:RRK) announced today that it has received analytical results from the 2008 Diamond Drilling Campaign extending the Fusion Zone along the Lake Cinch Main Ore Fault (MOF). The highlights for holes 08RB2-12 and 08RB2-14 to 08RB2-16 are tabulated in Table 1 herein (at end). Prior results of drilling for holes 08RB2-01 to 08RB2-11 and 08RB2-13 were previously reported in press releases of April 7, May 20 and July 15, 2008.

The latest results extend the Fusion Zone down-dip along the Lake Cinch Main Ore Fault. The lake Cinch Main Ore Fault structure, hosted the bulk of the historic production by former mine operator Lake Cinch Mines Ltd. Red Rock Energy's Fusion Zone is located on the same structure in close proximity to the former underground workings which still hosts a historic resource of approximately 1,200,000 lbs of U3O8 as identified in the company's NI 43-101. Hole 08RB2-14 intersected 0.116% (2.32 lbs/ton) U3O8 across 3.00 m of core and 0.100% (2.00 lbs/ton) U3O8 across 1.50 m core both contained in a broader zone of 0.068% (1.68 lbs/ton) U3O8 across an 11.00 m core length.

As a result, this intercept in hole 08RB2-14 indicates the Fusion Zone extends at least 120 m down-dip along a southeasterly rake in the plane of the Cinch Main Ore Fault structure from the prior high grade intercepts in holes 08RB2-03, 08RB2-07 and 08RB2-13. Highlights from these holes include: 08RB2-03 (0.123% = 2.46 lbs/ton U3O8 across 7.00 m), hole 08RB2-07 (0.131% = 2.62 lbs/ton U3O8 across 1.5 m) and 08RB2-13 (0.373% = 7.46 lbs/ton U3O8 across 8.50 m)

These grades and widths are typical in general of the former uranium mines that existed in the Beaverlodge District and in particular for the uranium ore bodies that were previously mined at the Lake Cinch underground operation.

From July 2 to August 19, 2008 Red Rock Energy continued to drill the up-dip extensions of the Fusion Zone in holes 08RB2-17 to 08RB2-26 and the down-dip extension at one locale in hole 08RB2-27. The core samples from these last 11 holes have been submitted for analysis for uranium and the results are expected shortly. As of August 19th 2008 Red Rock has completed a total of 7,776.6 m in 27 holes to test the Fusion Zone at depth northeast of the former Lake Cinch mine underground workings.

Once assay results are received for holes 08RB2-17 to 08RB2-27, an assessment will be made as to whether there are sufficient drill pierce points to perform a preliminary uranium resource estimate on this uranium zone. If required, further in-fill and extensional drilling will be done during mid to late Fall 2008.

On August 20, 2008 Red Rock Energy moved the drill rig from the former Lake Cinch mine area to the vicinity of the former Cenex mine area with the intent to drill at least six and possibly up to twelve holes to test the down-dip extension of the River and associated uranium zones that historic records indicate extended to depth, but were never drill tested.

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: Drilling Highlights from Red Rock Energy Inc. 2008 Drill Campaign
for holes 08RB2-12, 08RB2-14, 08RB2-15 and 08RB2-16.

----------------------------------------------------------------------------
UTM UTM Collar Collar
Hole Easting(1) Northing(1) Azimuth Inclination
----------------------------------------------------------------------------
08RB2-12 632522 6603196 310 degrees -70 degrees
----------------------------------------------------------------------------
Including
08RB2-12
----------------------------------------------------------------------------
08RB2-14 632440 6603167 310 degrees -70 degrees
----------------------------------------------------------------------------
08RB2-14
----------------------------------------------------------------------------
Including
08RB2-14
----------------------------------------------------------------------------
Including
08RB2-14
----------------------------------------------------------------------------
08RB2-15 632356 6603146 310 degrees -50 degrees
----------------------------------------------------------------------------
Including
08RB2-15
----------------------------------------------------------------------------
08RB2-16 632356 6603146 310 degrees -70 degrees
----------------------------------------------------------------------------
Including
08RB2-16
----------------------------------------------------------------------------
08RB2-16
----------------------------------------------------------------------------
Including
08RB2-16
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Core Average
From Length Grade pounds Intersection
Hole (m) To (m) (m) U3O8 /ton Type
----------------------------------------------------------------------------
Cinch
08RB2-12 367.00 376.00 9.00 0.031% .620 MOF(2)
----------------------------------------------------------------------------
Including
08RB2-12 373.50 375.50 2.00 0.078% 1.56 Cinch MOF
----------------------------------------------------------------------------
Cross-
08RB2-14 62.00 63.50 1.50 0.138% 2.76 Fracture(3)
----------------------------------------------------------------------------
08RB2-14 311.00 322.00 11.00 0.068% 1.36 Cinch MOF
----------------------------------------------------------------------------
Including
08RB2-14 311.50 313.00 1.50 0.100% 2.00 Cinch MOF
----------------------------------------------------------------------------
Including
08RB2-14 316.50 319.50 3.00 0.116 2.32 Cinch MOF
----------------------------------------------------------------------------
08RB2-15 249.00 259.00 10.00 0.034% .680 Cinch MOF
----------------------------------------------------------------------------
Including
08RB2-15 249.00 254.00 5.00 0.050% 1.00 Cinch MOF
----------------------------------------------------------------------------
08RB2-16 279.50 288.50 9.00 0.028% .560 Cinch MOF
----------------------------------------------------------------------------
Including
08RB2-16 285.50 288.00 2.50 0.050% 1.00 Cinch MOF
----------------------------------------------------------------------------
08RB2-16 291.00 298.00 7.00 0.052% 1.04 Cinch MOF
----------------------------------------------------------------------------
Including
08RB2-16 291.00 293.50 2.50 0.111% 2.22 Cinch MOF
----------------------------------------------------------------------------

(1) Note: UTM Eastings and Northings are given for a datum of NAD83, Zone
12N.
(2) Note: Cross-fracture refers to a uranium-bearing structure that exists
in the hanging wall of the Cinch Main Ore Fault.
(3) Note: Cinch MOF means Lake Cinch Main Ore Fault.


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