A SMALL EXPLORER HAS PROSPECTS IN SA WITH 60pc IR0N 0RE Sydney -...

A SMALL EXPLORER HAS PROSPECTS IN SA WITH 60pc IR0N 0RE

Sydney - Tuesday - May 13: (RWE Aust Business News)
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OVERVIEW
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Rex Minerals Ltd (ASX:RXM) has reported much of its exploration
movements in April but yesterday excited the market with a release about
iron ore targets on the Eyre Peninsular of South Australia.
The company has received the results of a regional geophysical
gravity survey completed on EL3418 (Cowell project) on the Eyre
Peninsula, which has confirmed the potential for hematite and magnetite
iron ore within the licence area.
A 12 kilometre long magnetic feature dominates the Cowell
project, which is interpreted to be the extension of the iron formations
in the Middleback Ranges.
The Middleback Ranges have historically produced over 200 million
tonnes of high-grade (60pc Fe) iron ore.
Exploration by Rex commenced on the Cowell project in March with
a gravity survey recently completed over the entire licence area.
Modelling and interpretation of the gravity data has been
undertaken, and a number of targets with potential for shallow concealed
hematite iron ore identified.
In addition, several deeper magnetite (BIF) iron ore have been
identified.
The project is located close to established infrastructure, 40km
to the south of Onesteel's Middleback Range iron ore operations and 80km
southeast of Whyalla.
Rex is very encouraged by these results and is well placed to
undertake first pass drilling of the defined targets in the September
quarter.
Managing director Steven Olsen said the gravity results have
given Rex some clear direction on where to test for high-grade iron ore
at Cowell.
"The potential for a high-grade iron ore discovery in an area so
close to existing infrastructure makes for an exciting addition to Rex's
existing portfolio," he said.
On April 29 Rex acquired rights to gold and silver resources at
Mt Carrington, which is situated in northeastern NSW near the township of
Drake and 100km from Lismore.
Key attributes of the Mt Carrington project include:
* Shallow resources of 240,000 ozs gold equivalent (146,000 ozs
of gold and 4.6 million ozs of silver);
* Drill defined extensive gold and silver mineralisation beyond
the existing resources;
* Immediate open pit development opportunities and future
multi-mine potential;
* Epithermal system with potential for large-scale, high-grade
gold mineralisation at depth; and
* Close to infrastructure, suppliers and workforce at Lismore.
"The agreement to acquire the Mt Carrington project is a
significant milestone for Rex," Mr Olsen continued.
"We are excited by the potential at Mt Carrington because of the
evidence that this is a giant mineralised epithermal system.
"This style of deposit hosts some of the highest grade and most
profitable gold mines in the world.
"Mt Carrington already has 240,000 ozs of gold equivalent
resources and these are likely to be significantly upgraded which would
make for a great start to any development option," Mr Olsen said.
Rex now has ownership of projects covering gold, silver, copper
and iron.
The strategy at Rex is to acquire highly prospective projects
with the potential to host large high-grade and hence profitable
deposits.
Rex then applies its extensive technical experience and existing
drilling capacity to progress these projects.
Rex has moved quickly to advance its exploration projects in
South Australia and Victoria over the past six months, and has ongoing
diamond drilling capacity for the next 18 months through its alliance
with Titeline Drilling Pty Ltd.
The exploration portfolio is dramatically enhanced with the
acquisition of Mt Carrington as it provides Rex with a more immediate
development opportunity to complement the exciting potential for new
discoveries in South Australia and Victoria.

SHARE PRICE MOVEMENTS
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Shares of Rex Minerals yesterday rose 7c to 33c. High for the
year is 48c and low 23c. The company has 535 million shares on issue with
a modest market cap of $10.3 million. It also has 17.5 million unlisted
options.
Earlier in April, uranium explorer Uraniumsa Ltd (ASX:USA)
entered into joint ventures with three other mineral explorers to extend
the scope of its uranium exploration on the highly prospective eastern
seaboard of the Eyre Peninsula.
The proposed joint ventures with Australasia Gold Ltd (ASX:AAO),
Rex Minerals and Stellar Resources Ltd (ASX:SRZ), will give Uraniumsa the
opportunity to follow the southward extensions of a sediment-hosted
uranium deposit discovered at its Mullaquana project, near Whyalla, last
December.
The terms of the three joint ventures provide for Uraniumsa to
earn a 70 per cent interest in extensions of the Mullaquana
mineralisation, while its three joint venture partners will retain 30 per
cent of these sequences, and 100 per cent of all mineralisation
discovered in bedrock.
"These agreements will consolidate and optimise our first-mover
advantage at Mullaquana, where our latest 33-hole drilling program
identified two extensive uranium mineralised trends," said Uraniumsa's
managing director, Russel Bluck.
"The best defined of these, the Mullaquana trend, is at least 19
kilometres long and opens out to both the east and south, so we are eager
to follow its extensions and discover its full extent."
On April 15: Rex announced that it had received encouraging
high-grade gold results from the initial phase of diamond drilling at the
St Arnaud gold project in central Victoria.
Highlights from the drilling results include a spectacularly high
grade gold assay plus some supporting assay results which include 1m @
1,174g/t gold from 425m, 1m @ 11.24g/t gold from 258m and 1m @ 3.43g/t
gold from 250m.
The assay results highlighted above are from the first of three
targets that have been drilled to date at St Arnaud.
All three targets exist directly underneath some of the region's
more significant historical gold mines, with the first target situated on
the northern end of the Bristol line.
The first three drill holes on the Bristol line were drilled
immediately beneath an interpreted low-grade gold or depleted zone (based
on the historical records) which intersected a series of narrow quartz
veins with the highest gold assay result of 11.24g/t.
Subsequent drilling at greater depths from drill hole STDD004
intersected a high grade quartz vein which returned a gold assay result
of 1,174g/t.
The results received to date have confirmed the presence of
high-grade gold mineralisation beneath the old workings on the Bristol
line at St Arnaud, with results from another two target locations on the
Nelson Line still pending.
This is an important first step in Rex's aim to identify multiple
gold deposits at St Arnaud which are similar to the historically mined
Lord Nelson mine at St Arnaud.
The Lord Nelson mine is estimated to have produced 320,000ozs of
gold at an average recovered grade of over 15g/t.
Rex believes that the identification of multiple gold deposits
similar to the Lord Nelson is possible at St Arnaud, which would provide
for a long term and highly profitable gold operation.

BACKGROUND
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Rex listed on the ASX in September 2007, raising $7 million and
entering into a drilling alliance with Titeline Drilling Pty Ltd, which
has secured the services of one drill rig for a period of two years.
The strategy at Rex is to acquire highly prospective projects
with the potential to host large resources in commodities that are in
high demand.
Rex has ownership of projects covering the commodities of gold,
silver, copper and iron.
They are located in SA, Victoria and NSW and are within
geological terrains that are known for their endowment in these
commodities.
Rex then applies its extensive technical experience and existing
drilling capacity to progress these projects.
The company is searching for the iron oxide copper gold (IOCG)
style of mineralisation at its 100 per cent owned Moonta South
(including the Hillside project) and Wandearah projects in South
Australia.
IOCG mineralisation and alteration is typical of the Olympic Dam
and Prominent Hill deposits.
Rex also owns an iron ore project near Cowell on the Eyre
Peninsula.
The Cowell iron ore project is interpreted by Rex to host the
extension of the Middleback Range iron formation which has recorded
production of over 200 million tonnes of high-grade (greater than 60 per
cent Fe) iron ore.
The company also has 100 per cent ownership of two gold projects
in Victoria - the St Arnaud and North Creswick projects.
St Arnaud produced over 360,000ozs historically at an average
recovered grade of over 15g/t.
Rex is looking for geological repeats of the historical
mineralisation at St Arnaud.
At the North Creswick project, historical mining produced 1.7Mozs
of gold, from ancient river channels under a cover sequence of more
recent rocks.
Rex is looking for new structures underneath the large gold
deposits at North Creswick in an attempt to discover new large
quartz-hosted gold deposits similar to what has been identified at
Ballarat.
The company has an option to acquire the Mt Carrington
gold-silver project in NSW. Mt Carrington has 240,000 ozs of gold
equivalent resources with large scale high-grade gold potential.
The style of deposit defined at Mt Carrington hosts some of the
highest grade and most profitable gold mines in the world.
This means that there is a significant opportunity to discover
high-grade mineralisation at depth beneath the extensive shallow gold and
silver mineralisation which would be a capable of large scale mining.
Rex currently has 53 million fully paid ordinary shares on issue
and 7.5 million unlisted options.