Rex Minerals Limited (ASX:RXM) Large Scale Silver Mineralisation Intersected At White Rock North, Mt Carrington Copper-Gold-Project

Melbourne, Oct 8, 2009 AEST (ABN Newswire) - Rex Minerals Limited (ASX:RXM) has received assay results from a drilling program recently completed at the White Rock North silver prospect within Rex's 100% owned Mt Carrington copper-gold-silver project in north-eastern NSW.

The program was undertaken to validate the silver results from drilling completed in the 1980's, and also as an initial test of the broad induced polarisation (IP) chargeability feature underlying the prospect (announced 27 August 2009).

All four drill holes in this program (WRDD002 to WRDD005) have intersected widespread shallow silver mineralisation within and on the margins of a large rhyolitic porphyry intrusion. It is interpreted that this porphyry intrusion may underlie an area as large as 1km2 with potential for large scale shallow silver and deeper copper-gold mineralisation. A peak assay result in excess of 1,400 g/t silver was returned from this drilling program.

Rex's Managing Director Steven Olsen said today "The extent of the shallow silver mineralisation is a great result. However, it is the size of the underlying IP anomaly and the possibility that it is related to a very large porphyry intrusion that adds further significance to these results."

Results

The drilling at White Rock North has provided important information on the style and potential extent of the silver mineralisation. The mineralisation is related to at least two zones of north-east-trending stockwork quartz-sulphide veining and brecciation. The highest grade silver is observed where the vein sets intersect the margins of the rhyolite porphyry and the mineralisation has been intersected in drilling as shallow as 9m below the surface. Previous surface rock chip sampling of outcropping quartz veining in porphyry 100m north of this drilling by Rex returned silver values in excess of 100 g/t.

All indications to date point to a large and shallow mineralised system existing at White Rock North, with good potential to define substantial extensions to the mineralisation both laterally and at depth.

Geological comparisons with similar porphyry-related gold-silver-copper mineralisation at White Rock indicates that the silver mineralisation has formed at elevated levels in the hydrothermal system and good potential exists to define gold - copper mineralisation at deeper levels both within and marginal to the porphyritic intrusion defined. The geological setting of the White Rock prospect bears a number of similarities to the Cadia - Ridgeway gold-copper deposits in the Lachlan Fold Belt in central NSW.

The IP anomaly that has been identified recently at White Rock is interpreted to be the result of a high concentration of sulphide minerals on the margins of a large porphyry intrusion. Various sulphide minerals at Mt Carrington are typically associated with the gold, silver and copper mineralisation. The shape and location of the IP anomaly combined with the rock types identified in the recent drilling program are all consistent with there being a large mineralised porphyry intrusion at approximately 200m beneath the surface at White Rock.

A high resolution airborne magnetic survey commenced over the Mt Carrington project this week (400km2 at 50m spaced lines and 35m sensor height), and the results of this survey will be interpreted together with the recent dipole IP surveys for further drill targeting at White Rock North.

Contact

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