Red Rock Energy Inc.
TSX VENTURE : RRK

Red Rock Energy Inc.

September 24, 2007 10:51 ET

Red Rock Releases Initial Partial Results of Summer Drilling Program

CALGARY, ALBERTA--(Marketwire - Sept. 24, 2007) - Red Rock Energy Inc. (TSX VENTURE:RRK) announced today that it has completed the initial phase of its summer drilling program. This initial campaign was completed during August and comprised diamond drilling of 1389.8 m in nine (9) holes. All holes comprised NQ core, end of hole lengths ranged from 118.8 m to 245.6 m, and all holes were inclined (typically at -45º, but with two steeper holes inclined at -55º and -70º) with the intent being to intersect potentially steeply dipping uraniferous zones or moderately dipping faults that are believed to be spatially and possibly genetically associated with uraniferous zones. The program was principally designed to follow-up prior drill intersections by others (i.e., holes drilled by the former crown corporation Eldorado Nuclear Limited) and to search for undiscovered uraniferous zones within Red Rock's Red Block 1 mineral property. To mid-September, partial results have been received from 131 samples from five of the nine holes. The remaining samples are still being chemically assayed for uranium (U3O8). Result highlights from the partial results received for these five holes include the following, with all width intervals being core length:



Average
Grade
Hole From (m) To (m) Width (m) U3O8 Results Received
---------- -------- ------- ---------- --------- ---------------------------
07RB1-001 25.00 25.60 0.60 0.338% 18 of 34 samples for hole
07RB1-001 43.00 44.00 1.00 0.205% 18 of 34 samples for hole
07RB1-001 121.30 123.20 1.90 0.159% 18 of 34 samples for hole
07RB1-002 65.00 65.70 0.70 0.061% 27 of 45 samples for hole
07RB1-002 70.25 71.50 1.25 0.059% 27 of 45 samples for hole
07RB1-002 86.70 92.00 5.80 0.037% 27 of 45 samples for hole
Including
07RB1-002 90.70 92.00 1.30 0.086%
07RB1-004 25.20 25.80 0.60 0.619% Complete
07RB1-007 11.00 15.70 4.70 0.033% Complete
07RB1-007 16.85 20.00 3.15 0.053% Complete
07RB1-007 22.80 23.10 0.30 0.201% Complete
07RB1-007 78.70 80.00 1.30 0.041% Complete
07RB1-008 35.20 35.90 0.70 0.031% 27 of 69 samples for hole
07RB1-008 40.80 41.40 0.60 0.064% 27 of 69 samples for hole
07RB1-008 45.50 51.10 5.60 0.020% 27 of 69 samples for hole


At this stage of drilling, an estimate of true width of the uraniferous zones intersected is not possible due to the small amount of drilling, but because all the holes were inclined and the uraniferous zones may be steeply dipping, then if such is so the estimated true widths would be less than the actual core lengths given above.

Management considers these early partial results to be encouraging because they indicate that in places within the Red Block 1 property (a) there are anomalously uraniferous zones with widths up to several metres or more, and (b) at least locally there are uranium grades of potential economic interest. Red Rock is continuing to search for locales where elevated uranium grades over wide widths coincide. Results from the remaining samples collected during the June to August campaign are expected shortly from the analytical laboratory (Loring Laboratories Ltd. of Calgary, Alberta) and will be provided once received and interpreted. In the meantime, the Red Rock drilling team has been redeployed to Uranium City and is continuing with the drilling of additional holes on Red Block 1 during drill campaign #2 from early September to mid October 2007.

In reviewing the drill results from the first five holes, Sandy Loutitt, President of Red Rock, commented: "We are very encouraged by these initial drill results which confirm our geological model based on a systematic compilation of old data overlaid with new geological thinking. Completion of this initial phase of activity has also added lessons in terms of the efficient execution of our drill program, and we expect the number of holes drilled to increase accordingly over the next several months."

Reg A. Olson, Ph.D., P. Geol., a Qualified Person under NI 43-10 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