Rex Minerals Limited (ASX:RXM) Quarterly Activities Report For The Period Ended 30 September 2009

Melbourne, Oct 15, 2009 AEST (ABN Newswire) - Rex Minerals Limited (ASX:RXM) completion of detailed geophysical surveys combined with recent confirmation drill holes provide further evidence supporting the interpretation that large-scale mineralisation exists at Hillside. In addition, new shallow supergene copper mineralisation has been discovered at Hillside. This is interpreted to be the cause of a series of EM anomalies identified from an EM survey completed this quarter.

Outside of the Hillside project a detailed magnetic survey over the entire Pine Point Copper Belt (60km in length) has revealed multiple large scale copper targets.

OUTLOOK

The Company has two diamond drill rigs at Hillside which will remain there for most of the December 2009 quarter. Further drill testing of the shallow copper recently identified on the Parsee magnetic anomaly will be a significant focus over the next few months.

Rex will continue to broadly assess where the most significant copper mineralisation is likely to occur at Hillside in preparation for a more detailed infill drilling program in 2010.

PROJECTS

Pine Point Copper Belt (South Australia)

Drilling results at Hillside in the first half of 2009 identified a strong relationship between the iron mineral magnetite and copper mineralisation (predominantly the copper mineral chalcopyrite). This association is significant, as detailed magnetic surveys have the ability to accurately define where large concentrations of magnetite exist under cover. Given that the copper host rocks on the Pine Point Copper Belt occur almost exclusively below a thin layer (over 10m) of cover rocks, this has that potential to open up a new frontier of discovery on the Yorke Peninsula. All drilling to date (42 drill holes to date) continues to show a strong relationship between magnetite and copper mineralisation.

With this knowledge a large regional high-resolution magnetic survey was flown over the entire Pine Point Copper Belt. This survey was completed in early October. Multiple large scale targets were identified. At the Parara and White Cliffs targets, there are distinct analogies to Hillside with high-grade historical copper mines in close proximity to large magnetic anomalies.

Hillside Prospect - Pine Point Copper Belt (South Australia)

Key activities completed at Hillside during the quarter included a high resolution magnetic survey and an electromagnetic (EM) survey. The results from the magnetic survey revealed three major features that are interpreted to be three continuous faults known as the Zanoni, Parsee and the Songvaar. The majority of the high grade copper results returned from drilling to date at Hillside are interpreted to be related to the Zanoni Fault Zone, which is located underneath the western magnetic feature.

The largest magnetic feature is known as the Parsee magnetic anomaly which had not been drill tested at the time the new magnetic survey was completed. Drilling commenced in September close to the peak of the Parsee magnetic anomaly. The first drill hole (HDD042) was immediately successful, intersecting shallow secondary (chalcocite) copper mineralisation at a depth of 79.5m down hole, followed by significant primary copper mineralisation (chalcopyrite) hosted by magnetite from 100m to 145m down hole. Assay results from HDD042 are expected to be received in early November.

The continued association between the magnetite and copper has significant implications for the Hillside project. This result now opens up the potential for additional large scale copper mineralisation on the Parsee structure which is broadly defined by a large magnetic anomaly extending for over 1.5km in length.

Drilling on the Zanoni Fault Zone on broadly 100m spaced sections, has continued to successfully define high-grade copper mineralisation for a strike length of over 500m.

The mineralisation on the Zanoni Fault Zone remains open both to the north and to the south. The magnetic anomaly attributed to the Zanoni Fault Zone is interpreted to extend for up to 2km, based on a recently completed high resolution magnetic survey.

Hillside Prospect - Discovery of secondary copper

Rex Minerals has completed drill testing of the first of several shallow EM anomalies which were defined from a recently completed survey at Hillside. The initial drill hole (HDD039) intersected a sequence of weathered rocks to a greater depth than previously encountered. Within the weathered rocks a range of secondary copper minerals were identified including native copper, atacamite and chalcocite. Although only small amounts of native copper were intersected in the drill hole, the EM response indicates that additional significant native copper could occur at this location.

Drill hole HDD039 returned an intersection of 108m @ 0.2% copper from 33m, including 34m @ 0.4% copper from 83m down hole. This does not include the assay for the section of drill core that contained the largest occurrence of native copper, which is being validated with further assays. Anomalous levels of uranium, gold and silver were also identified in this drill hole, with the following results; 15m @ 2.0g/t gold from 54m, 44m @ 3.1g/t silver from 28m and, 50m @ 92.4ppm U3O8 from 33m.

Rex considers that this result has identified a separate type of copper target, from the primary copper mineralisation that has been discovered to date at Hillside. The presence of secondary copper mineralisation near the surface in close proximity to a large primary copper deposit is not unusual and has been reported previously on the Yorke Peninsula associated with the large historical Moonta/Wallaroo copper deposits. Other large deposits within Australia such as the Ernest Henry copper deposit also contain similar primary and secondary mineralisation, with an EM anomaly interpreted to be associated with native copper mineralisation. A total thickness of 108m of shallow copper mineralisation, combined with the size of the EM anomalies at Hillside indicate that significant secondary copper mineralisation could exist at Hillside.

Mt Carrington Gold-Silver Project (New South Wales)

During the quarter two drilling programs were completed at Mt Carrington. Drilling for copper was completed at the All Nations prospect which was designed to follow up the mineralisation intersected by Rex earlier in the year in drill hole KYDD001, which intersected 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 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 program of four drill holes was also completed at the White Rock North prospect. This program was designed to confirm high grade silver intersections recorded in 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). All four drill holes 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.

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.

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.

ACTIVITIES PLANNED FOR NEXT QUARTER

Hillside: Rex has two diamond drill rigs located at the Hillside project. The drilling program at Hillside is expected to continue throughout the next quarter, focussing on the larger magnetic anomaly which is associated with the Parsee Fault Zone. Towards the end of the quarter it is expected that Rex will place one drill rig on at least one of the high priority targets that have been identified from the recently completed regional magnetic survey.

Mt Carrington: A detailed magnetic survey at Mt Carrington is currently underway. Results from the detailed magnetic program and recently completed induced polarisation (IP) surveys will be combined with all the recently compiled historical and new geological information. A review of Mt Carrington is anticipated during the next quarter given the large volume of new and detailed information that has been gathered there. Substantial evidence is building for larger scale silver, gold and copper potential at Mt Carrington.

For the complete Rex Minerals Quarterly Report for September 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/61588-ASX-RXM-326018.pdf

Contact

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