HIGH-GRADE METALS DISCOVERY PRODUCES PLENTY OF SHARE ACTION...

HIGH-GRADE METALS DISCOVERY PRODUCES PLENTY OF SHARE ACTION

Sydney - Wednesday - April 1: (RWE Aust Business News)
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OVERVIEW
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Ferret describes Rex Minerals Ltd (ASX:RXM) as a funny sort of
stock.
It alternates between bouts of inactivity and bouts of
hyper-activity.
The biggest mood swing was on January 12.
After not trading at all for three days at 13c, the shares opened
at 25.5c and soared to close at 45c on the back of an announcement of
significant copper, gold and uranium results at Hillside in South
Australia.
The punters were so impressed the stock rose further to 75c on
January 13 before drifting back to 28c on January 27.
It was hyper-activity time yesterday following a lacklustre
session last week when the shares eased from 48c to 43c.
Rex soared 15.5c to 58.5c and closed at 52c on Monday after it
announced the discovery of high-grade copper mineralisation at Mt
Carrington in NSW.
"The size and extent of the polymetallic mineralisation at Mt
Carrington is outstanding," managing director Steven Olsen said.
Yesterday the company gave details about the remaining results
from the drilling program at Mt Carrington which was conducted between
January and March.
A total of 18 drill holes were completed in this program with
earlier results announced in February and early March.
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 included:
* 18.7m @ 5.9pc copper, 0.8pc zinc and 18g/t silver from 52.25m
in drill hole KYDD001;
* 10.1m @ 6.3pc copper, 1.9pc zinc and 19g/t silver from 88.0m in
drill hole KYDD001;
* 70m @ 65g/t silver and 0.4pc zinc from 78m in drill hole
WRDD001; and
* 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 project.
It was highly 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.

SHARE PRICE MOVEMENTS
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Shares of Rex Minerals yesterday drifted down 1c to 51c. Rolling
high for the half year is 75c and low 12.5c. The company has 59.1
million on issue and a market cap of $25.5 million.
"The size and extent of the polymetallic mineralisation at Mt
Carrington is outstanding," Mr Olsen said.
"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," Mr
Olsen declared.
Rex holds an option to purchase 100 per cent of the Mt Carrington
project which expires on April 28.
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.
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 5pc copper.

BACKGROUND
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Rex Minerals Ltd joined the ASX list in September 2007.
The company owns projects covering copper, gold, silver and iron,
located in South Australia and New South Wales within geological terrains
that are known for their endowment in these commodities.
The strategy at Rex is to acquire highly prospective projects
with potential to host high-grade and hence profitable deposits.
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 Pine Point (including the Hillside
project) and Wandearah projects in South Australia.
IOCG mineralisation and alteration is typical of the Olympic Dam
and Prominent Hill deposits.
The Mt Carrington project has 190,000 ozs of gold and 10.5
million ozs of silver with additional shallow gold and silver potential.
The epithermal 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 amenable to large scale mining.