Rhyolite Resources Ltd.
TSX VENTURE : RYE

March 19, 2007 09:30 ET

Rhyolite Sampling Yields 18.5 g/t Gold and 430 g/t Silver at Delta Project, Alaska

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 19, 2007) - Rhyolite Resources Ltd. ("Rhyolite") (TSX VENTURE:RYE) is pleased to announce that rock sawed and chip samples collected from massive sulphide-rich boulder float in the Super Cub area of the Delta property in Alaska have returned assays averaging 12.2 grams gold per tonne, 222.2 grams silver per tonne, plus 0.8% copper, 11% lead and 7.5% zinc.

A total of 9 massive sulphide rich samples were collected over a 50-by-85 metre area of the Super Cub East Kill Zone, which is marked by a distinctive vegetation anomaly that is within a 150 metre by 300 metre multi-element soil geochemical anomaly. The richest massive sulphide float sample returned 28.1% combined copper-lead-zinc with 8.8 grams gold per tonne and 210 grams silver per tonne. The highest precious metals samples are from oxidized rocks with a quartz-rich boxworks that assay up to 18.5 grams gold per tonne and 430 grams silver per tonne with 14.4% combined copper-lead-zinc. Intermixed with the massive sulphide cobbles and boulders in the Super Cub Kill zone are various schists and gabbro and a unique, siliceous pyritic schist that is interpreted to represent a capping or lateral unit intimate to the formation of the high-value sulfide mineralization. This siliceous-pyritic schist material is also found and was sampled in an outcropping horizon 300 metres south of the Super Cub Kill zone. Rhyolite's re-examination of prior operator's drill core concludes that this unit was also encountered in one drill-hole 400 metres to the west. Rhyolite's samples of this siliceous pyritic horizon returned above background values for gold, silver, antimony, and mercury that mark an in-situ horizon that is believed to be related to formation of the high grade sulfide target. Overall, the results from the 2006 program confirm the high-grade nature of the massive sulphide mineralization hosted in the Lagoon sediments in this particular area of the property and will be the focus of Rhyolite's exploration efforts moving forward.

To aid in target definition for the source of the high-grade massive sulphides in the Super Cub Kill Zone, Rhyolite completed a geophysical gravity survey and a study of the Quaternary surficial geology over the area. A total of 140 gravity stations were measured along 5 lines totaling 4 km in length. A 1.2 milligal gravity anomaly is displayed virtually straight up-hill of the high grade boulders in a talus covered area that marks the upper tail of the train of anomalous soil geochemistry. Due to a deficiency in the quality of the digital terrain model, near terrane corrections have not been applied, however, this anomaly, which remains open and broadens out 100 metres to the north in an area of complete tundra cover, is considered to have sufficient amplitude that it would be expected to persist after the application of the near terrain corrections, although it is likely that its size, symmetry and amplitude characteristics will be altered.

Mapping of the surficial geology led to the conclusion that the debris deposits carrying the high-grade sulphides at the Super Cub Kill zone are transported to their current location by slope failure immediately uphill to the west. This correlates well with the apparent gravity anomaly and refutes the glacial mechanism invoked by prior operators and presents an immediate proximal target area for Rhyolite to test by drilling.

Study of polished sections of select samples indicates that mineral growth and texture is consistent with that of a metamorphosed massive sulphide deposit and not formed in a late sulphide vein system. A sample has also been sent for Pb-isotope fingerprinting.

In a separate target area from the Super Cub zone, a quartz vein returned 1.95 grams gold per tonne from outcrop sampling. The 35 cm thick banded vein is traceable in an altered diorite outcrop for over 30 meters where it projects beneath talus cover. This discovery marks the identification of a new target, which will be followed up, as will the exceptionally high precious metal grades associated with mineralization to the east of the LP deposit in an area where channel sampling in 2005 returned 14.8% lead, 0.4% copper, 6.1 grams gold and 374.8 grams silver per tonne over 3 metres.

Assay Result Highlights:



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Sample Type Location Description Au g/t Ag g/t Cu(%) Pb(%) Zn(%)
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Float Super Cub Massive
Kill Zone sulphide 12.65 95.0 0.69 5.83 5.76
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Float Super Cub Massive
Kill Zone sulphide 9.79 94.0 0.25 6.17 5.70
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Float Super Cub Massive
Kill Zone sulphide 8.15 243.0 0.99 15.7 11.25
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Float Super Cub Massive
Kill Zone sulphide 8.77 210.0 0.79 12.55 14.75
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Float Super Cub Oxide-Silica
Kill Zone boxwork 18.50 430.0 0.22 13.90 0.19
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Float Super Cub Sulphide-Silica
Kill Zone boxwork 14.45 234.0 0.97 8.22 0.711
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Float Super Cub Massive
Kill Zone sulphide 12.85 211.0 1.83 11.25 8.57
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Float Super Cub Pyrite-Silica
Kill Zone horizon rock 0.287 1.2 0.001 0.03 0.003
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Float Super Cub Pyrite-Silica
Kill Zone horizon rock 0.796 26.0 0.002 0.66 0.003
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Float Super Cub Massive
Kill Zone sulphide 11.7 285.0 0.62 12.1 8.43
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Float Super Cub Massive
Kill Zone sulphide 12.7 198.0 0.67 10.85 12.5
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Outcrop Chip Super Cub Pyrite-Silica
East horizon rock 0.119 2.7 0.0014 0.0069 0.003
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Float Super Cub Chlorite schist
East 0.021 1.1 0.0017 0.0047 0.012
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Float Super Cub Pyrite-Silica
East horizon rock 0.099 1.0 0.0003 0.002 0.001
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Outcrop Chip Fourth of Quartz Vein
July 1.95 21.8 0.0006 0.016 0.002
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To the south of the Super Cub zone, the Delta property hosts a National Instrument 43-101 compliant inferred resource estimation of 15.4 million tonnes grading 3.8% zinc, 0.6% copper, 1.7% lead, 1.7 g/t gold and 62 g/t silver in seven deposits. This equates to an in-situ inferred resource of 1.28 billion pounds of zinc, 203 million pounds of copper, 576 million pounds of lead, 840,000 ounces of gold and 30.7 million ounces of silver. Some of the deposits are still open for expansion both laterally and vertically, and multiple other exploration targets exist on the property.

Through its US subsidiary Rhyolite Resources (USA) Inc., Rhyolite can earn a 100% interest in the Delta property from Grayd Resource Corp. (TSX Venture:GYD) by incurring $2.5 million in exploration expenditures by December 31, 2010 and make escalating stock payments totaling 5 million shares or, at its election, a number of shares with a deemed value at the time of issuance not to exceed $5 million, between 2008 and 2010. Grayd Resources Corp. will retain a 2% NSR if Rhyolite vests. Rhyolite has completed its required expenditures for 2006.

Richard Graham, P.Geol., president of Rhyolite, is a Qualified Person as defined by National Instrument 43-101, and is responsible for the preparation of the technical information in this release. All dollars are in Canadian currency unless otherwise stated.

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.

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

Contact Information

  • Rhyolite Resources Ltd.
    Richard Graham
    (604) 689-1428