Rhyolite Resources Ltd.
TSX VENTURE : RYE

November 10, 2010 09:30 ET

Rhyolite Announces up to 50.80 g/t Gold from Hunter Prospect Rock Sample

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Rhyolite Resources Ltd. (TSX VENTURE:RYE) ("Rhyolite" or "Company") is pleased to report that the results for the rock and soil samples collected during the 2010 surface exploration program at its wholly-owned Paxson project in eastern Alaska have been received. A total of 50 rock samples and 21 soil samples were collected during the program. Highlights from rock sampling of highly altered metasediments on the Paxson project include:

  • 8.85 g/t gold (weighted average) from a 7.0-metre continuous chip sample at the Shalosky zone;
  • 13.37 g/t gold (weighted average) from a 3.0-metre continuous chip sample at the Low zone and;
  • 50.80 g/t gold from a rock grab sample at the Hunter Prospect.

Shalosky zone

Defined in 2001 when a Placer Dome USA Inc. funded exploration program outlined a 1,100 metre by 500 metre greater than 100 parts per billion gold-in-soil geochemical anomaly. In 2001, two drill holes tested a 100 metre section of the anomaly and re-sampling/re-logging of the historic drill cores in 2010 validated the tenor of mineralization with hole WG01-01 returning 0.83 grams gold per tonne over the 38.2 metres including a higher grade interval averaging 6.45 grams gold per tonne over 2.1 metres. A second mineralized zone lower down in the hole returned 17.8 grams gold per tonne over 1.3 metres. Hole WG01-02 was collared 50 metre to the northeast and returned 1.22 grams gold per tonne over the 17.4 metre interval, including a 6.9 metre interval averaging 1.98 grams gold per tonne (Press Release July 26, 2010).

During the 2010 field season, a series of 8 contiguous channel samples (0.50-to-1.0 metre long) were collected approximately 50 metres west of hole WG01-01 and returned values ranging from 1.7 g/t gold to 36.6 g/t gold, for a length weighted average of 8.85 g/t gold over 7 metres.

The Shalosky zone is hosted in a north-northeast trending shear zone that contains quartz-sulphide veining, brecciation and fault gouge. The mineralized structure has been traced in two drill holes and surface samples along strike for 150 metres before disappearing under overburden at both ends of the exposed extent. Individual rock samples collected along the Shalosky zone and in the general area returned from 0.01 g/t to 36.6 g/t gold. A total of 8 soil samples were collected over the Shalosky zone yielding values from 0.09 to 0.141 parts per million ("ppm") gold.

Low zone

Located 3 kilometres east-southeast of the Shalosky gold-in-soil anomaly, the Low zone is largely a blind target that is outlined by the results of trench sampling excavated beneath an extensive blanket of talus overburden. Here, hand trenching in 2001 returned 8.6 grams gold per tonne over 9.8 metres. During the 2010 field program, a series of 3 contiguous 1 metre long samples were collected from a hand excavated area of this now covered trench and returned gold assays of 8.75 g/t, 18.95 g/t and 12.4 g/t for a weighted average of 13.37 g/t gold.

Moving 5 metres to the west, 2 contiguous 1 metre samples returned 3.51 g/t and 3.03 g/t gold for a weighted average of 3.27 g/t gold.

A further 150 metres to the west, channel sampling returned 4.48 g/t gold over 2 metres and 3.03 g/t gold over 2 metres for a weighted average of 3.76 g/t gold over 4 metres. A perpendicular channel sample across this channel yielded 6.23 g/t gold over 0.5 metre. The mineralization remains open in all direction.

The Low zone is hosted in a steeply dipping, east-west trending shear zone that contains quartz-sulphide veining, brecciation and fault gouge. The mineralized structure has been intermittently traced in trench samples along strike for 150 metres before disappearing under overburden at both ends of the exposed extent. Individual rock samples collected along the Low zone and in the general area returned from 0.01 g/t to 18.95 g/t gold.

Hunter Prospect

Located 1-km south-southeast of the Shalosky zone, the Hunter prospect was defined in 2001 when a 50 metre long trench was completed. During the 2010 field season, Rhyolite collected grab samples from the trench that returned 5.37 g/t gold and 50.80 g/t gold, while a 2.5 metre channel sample returned 1.0 g/t gold. Individual rock samples collected in the area of the Hunter prospect returned from 0.01 g/t to 50.80 g/t gold. A total of 6 soil samples were collected over the Hunter prospect yielding values from 0.003 to 0.134 ppm gold.

A 2001 diamond drill hole was collared approximately 50 metres east of the Hunter trench but the results from this drill hole have not been independently confirmed by Rhyolite. Field indications of the possible strike and dip of the mineralization however suggest that the mineralized target was not adequately tested by the single drill hole.

The field results confirm the tenor of the mineralization reported by the previous operator and indicate that the Paxson property hosts multiple zones of gold mineralization. Based on the results, Rhyolite has increased its landholdings through staking to 1,280 acres and has initiated a 43-101 compliant technical report for the Paxson project.

Quality control/Quality assurance

All samples collected in 2010 were sent for 48-element ICP analysis to ALS Chemex Labs. Samples were prepared in ALS Chemex's Fairbanks prep facility and then sent to Reno Nevada for analysis. Nine samples were inserted in the sample stream as a control (blank or gold standard). The Company has implemented a quality assurance and quality control program to ensure that sampling and analysis of all samples is conducted in accordance with the best possible practices.

Qualified Persons

Richard Graham P.Geol., the President of Rhyolite and a Qualified Person, as defined by National Instrument 43-101, is responsible for the preparation of the technical information in this release.

About Rhyolite

Rhyolite has 9,200,100 shares issued and outstanding and approximately $1,100,000 cash in its treasury. Its strategy is to identify and acquire prospective mineral projects through staking and then seek either joint venture partners or an outright sale.

Forward-Looking Statement

Some statements in this report contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, expenditures, transactions and financings. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, risks related to actual results of exploration activities, the timing and amount of expenditures and the completion of transactions and financings.

On behalf of the Board, Richard Graham, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Rhyolite Resources Ltd.
    Richard Graham
    (604) 488-8717