Rex Minerals Limited (ASX:RXM) Updates On Results From Recent Drilling And Geophysical Programs At The Mt Carrington Project

Melbourne, Sep 28, 2009 AEST (ABN Newswire) - Rex Minerals Limited (ASX:RXM) is pleased to report the results from recent drilling and geophysical programs at the Mt Carrington Project, NSW, conducted during the period July to August 2009, including the All Nations copper prospect, and the White Rock North silver prospect.

The near-surface copper mineralisation at All Nations is outside the existing (Au - Ag) Resources and has the potential to add significant value to the Mt Carrington Project. A total of 10 drill holes were completed at All Nations with all assay results now received. Highlights include:

- ANDD003: 0.85m @ 18 g/t gold and 0.5% copper from 76.5m
- ANDD005: 7m @ 1.9 g/t gold and 0.5% copper from 24m
- ANDD007: 18m @ 0.7% copper from 33m, including 4.7m @ 1.5% copper from 40m
- ANDD007A: 13.1m @ 0.6% copper from 44m
- ANDD007B: 1.1m @ 3.7% copper from 79.9m

The drilling at All Nations was designed to follow up the mineralisation intersected by Rex earlier in the year in drill hole KYDD001, which produced shallow and very high grade intersections of 18.7m @ 5.9% copper from 52.25m, and 10.1m @ 6.3% copper from 88.0m (announced 30 March 2009).

Interpretation of the drilling indicates that the copper and gold mineralisation occurs as narrow high grade zones at depth, enveloped and overlain by larger shallow lower grade secondary copper zones. Evaluation of previous drilling and mining data also indicates that strong potential exists to define further shallow copper zones within a broader area encompassing the All Nations - Gladstone - Pioneer Prospects and covering some 4km2. Mineralisation modelling also suggests potential for deeper copper - gold mineralisation in this region.

A 9km2 Induced Polarisation ('IP') survey has also been completed over all of the Mt Carrington Mining leases. This is the first geophysical program to have been undertaken on the leases for over 15 years. Preliminary data has highlighted several north to northeast striking features which are interpreted to be caused by potential copper sulphide-mineralised structures in the All Nations - Gladstone prospect area.

A program of 4 drill holes was also completed at the White Rock North prospect in August. The program was designed to confirm high grade silver intersections recorded in previous drilling undertaken in the 1980's, and as a preliminary test of the large IP chargeability anomaly defined on the prospect area (announced 27 August 2009). Each drill hole returned encouraging mineralisation, including native silver, sphalerite and significant sulphide-rich quartz veining and brecciation. Assay results are expected in early October 2009.

Drilling Results

Copper mineralisation was intersected in 8 of the 10 holes completed in this program at the All Nations Prospect, with many of the drilling intersections occurring near-surface.

Geophysical Surveys

A 9km2 gradient array Induced Polarisation (IP) geophysical survey was completed on the central Mt Carrington mine lease area, including the All Nations prospect, in August 2009. Interpretation of preliminary data indicates a strong association of several north to northeast striking chargeability anomalies with several copper-mineralised structures observed in previous mapping and historical mining data, in the western part of the survey area. The structures all have potential strike lengths of up to 1.5km and at least one of these structures has not been previously drilled.

The IP survey has also revealed several other strong chargeability anomalies in the mine lease area, interpreted to be the result of sulphide mineralisation potentially associated with gold and silver mineralisation. A number of resistivity anomalies have also been defined which are interpreted to be related to quartz veining and stockwork zones with pervasive silicification alteration similar to that observed at the Strauss and Kylo gold Resources.

Several of these new chargeability and resistivity anomalies exist in areas which have not been drilled by previous explorers and present new gold - silver targets for Rex. A number of pole-dipole IP traverses have also been completed to assist in modelling the estimated depth to these anomalies.

A downhole electromagnetic (DHEM) survey of the recent drill holes at the All Nations prospect has also been completed, and was designed to define the extent of the high grade copper intersections observed in KYDD001, and determine the existence of any 'off-hole' conductors related to massive copper sulphides. The results of the survey are awaited and, along with the drilling data, will enable a future focus on the most prospective portions of the mineralised structures in the All Nations area.

Future Mt Carrington Programs

A 7,700 line km airborne magnetic survey of the central part of the Mt Carrington Project will be undertaken in September-October 2009. This high-resolution helicopter-borne survey will cover an area of approximately 400km2 at 100 metre flight line spacing and will help define the detailed structural setting of the known gold-silver-copper mineralisation.

The recent drilling at All Nations and White Rock North, along with the detailed DHEM, IP and magnetic surveys provide a new platform for identifying and prioritising targets of potential copper, gold, and silver mineralisation at Rex's 100% owned Mt Carrington Project. A review of the geological and geophysical data in the next three months will lead to drilling of the most promising targets in early 2010.

For the complete Rex Minerals ASX Announcement, please click the link below:

http://www.abnnewswire.net/media/en/docs/61501-ASX-RXM-324847.pdf

Contact

Steven Olsen (Managing Director) or Janet Mason (Company Secretary) Phone: +61-3-5337-4000 E-mail: info@rexminerals.com.au