Rex Minerals Limited (ASX:RXM) New High Grade Copper And Silver Discovered At Mt Carrington

Kylo gold deposit cross section (ASX:RXM)

Melbourne, Mar 30, 2009 AEST (ABN Newswire) - Rex Minerals Limited (ASX:RXM) is pleased to announce the remaining results from the drilling program at Mt Carrington, NSW which was conducted during the period January to March 2009. A total of 18 drill holes were completed in this program with earlier results announced on 24 February 2009 and 2 March 2009. Of particular significance from the latest drilling results, is the discovery of high grade copper mineralisation which lies within 50m of the surface and is situated 150m from the Kylo gold Resource. Highlights from the recent drilling results include:

- 18.7m @ 5.9% copper, 0.8% zinc and 18g/t silver from 52.25m in drill hole KYDD001.

- 10.1m @ 6.3% copper, 1.9% zinc and 19g/t silver from 88.0m in drill hole KYDD001.

- 70m @ 65g/t silver and 0.4% zinc from 78m in drill hole WRDD001.

- 9m @ 290g/t silver and 1g/t gold from 96m in drill hole LHDD02B.

The drilling program at Mt Carrington was designed to confirm the accuracy of the existing Inferred Resource along with possible extensions to the known mineralisation ahead of the decision to exercise the option over the Mt Carrington Project. The drilling program was successful, with results confirming the position and grade of the existing Resource, plus the discovery of new gold, silver and copper mineralisation outside the existing Resource boundaries.

The discovery of near surface high grade copper mineralisation has the potential to add significant value to the Mt Carrington Project. This is an exciting addition to the existing Resources at Mt Carrington.

Rex Managing Director, Mr Steven Olsen said "The size and extent of the polymetallic mineralisation at Mt Carrington is outstanding. The results confirm our belief that there is much more to this system than has been previously discovered. This system has great potential, particularly when you consider that there has been virtually no exploration below a depth of 100m."

Rex holds an option to purchase 100% of the Mt Carrington project which expires on 28 April 2009, the details of which were announced by Rex on 13 March 2009 and 29 April 2008.

Summary of Results

Significant assay results for all remaining drill holes at the Mt Carrington Project are summarised below.


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HOLE ID   FROM  TO   INTERVAL  Ag   Cu   Zn   Au   DEPOSIT
          (m)   (m)           (g/t) (%)  (%) (g/t)
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KYDD001   52.35  71    18.65   18   5.9  0.8   -   NEW
          88     98.1  10.1    19   6.3  1.9   -   NEW
KYDD006   12     65    53      -     -   0.6  1.5  Kylo
Including 39     52    13      -     -   1.2  3.3  Kylo
WRDD001   71     72     1     138    -   0.2   -   White Rock
          78    148    70      65    -   0.4   -   White Rock
Including 97    106     9     201    -   0.6   -   White Rock
LHDD002B  96    105     9     290    -   0.1   1   Lady Hampden
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Table 1: Assay Results for the Mt Carrington drilling program.

The majority of the drilling for this program was designed to confirm the existing Inferred Resource estimate (an Inferred Resource is the lowest confidence level of Resource under the JORC code).

The previous drilling at Mt Carrington was generally detailed enough to provide for a higher confidence level, however, the drilling had been undertaken over multiple generations and needed to be validated before it could be confidently brought up to the next level of Resource category (Indicated Resource).

Results from the current Resource validation drilling were positive. Drilling from the Kylo, Strauss and Guy Bell gold deposits met expectations and drilling from the White Rock and Lady Hampden silver deposits either met or exceeded expectations. The majority of the current Resources from these deposits occur from the surface down to 80m in depth.

Extensions or improvements to the existing Resource have also been identified. In particular, a drill hole at Lady Hampden returned an intersection of 9m @ 290g/t silver, which occurs adjacent to the existing Resource.

Drilling was also planned to test the down dip extension of the Kylo gold Resource. This drill hole intersected significant copper mineralisation with assay results from this drilling proving to be significant with average grades in excess of 5% copper.

Two distinct structures were identified which host the high grade copper mineralisation. The first intersection of 18.65m @ 5.9% copper, has an estimated true width of greater than 9m and the second intersection of 10.1m @ 6.3% copper has an estimated true width of greater than 5m. The high grade copper results discovered near the Kylo gold deposit appears to be associated with a structure that was mined historically (pre-WW1), but has had no modern exploration.

Drill Rig Update

Rex currently has two drill rigs operating on the Yorke Peninsula in South Australia. One drill rig is located at Hillside, with the initial drilling program here designed to test the deeper targets that have been identified in previous announcements. The second drill rig is located at the Parara Project area, which is situated 12km to the north of the Hillside Project and less than 2km from the township of Ardrossan. Up to five separate gravity targets are being tested at Parara, which is the first time there has been any diamond drilling in the Parara area. Initial results from the drilling program at Hillside are anticipated within the next two weeks.

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