Exall Resources Limited and Southern Star Resources are pleased to announce the latest series of drill holes on the Bruce Channel Zone at the Gold Eagle property in Red Lake Ontario. Drilling is continuing on the project with four diamond drill rigs that are moving southwards, down the Bruce Channel in order to further extend the mineralized envelope.
- Mineralized envelope size increased to 615m NE-SW by 450m NW-SE by 1100m vertically
- 65m step out hole BC 19-2 intersects high grade gold mineralization
- 200m step out hole BC 21 intersects gold mineralization
- Bruce Channel Zone structure is open in all directions
Current drilling has significantly increased the size of the mineralized system to 450 metres in a northwest-southeast direction, 615 metres in a northeast-southwest strike direction and 1,100 metres vertically.
The high-grade gold intersections in BC 19-2 are located 65 metres south of the previously known most southerly edge of the Bruce Channel Zone and the extensive gold mineralization encountered in BC 21 is another 200 metres further southwest of BC 19-2. Gold values were encountered in BC 21 from approximately 730 metres to 1,020 metres (290 metres) and from 1,400 metres to 1,983 metres (583 metres).
In BC 21, the geology, alteration and mineralization are similar in all respects to the mineralization previously encountered in the Bruce Channel Zone further to the northeast. This significant step-out has major implications for the size potential of the gold mineralized envelope. Step-out drilling and in-fill drilling between the gold mineralization intersected in BC 21 and the high-grade gold values intersected in BC 19-2 are continuing.
The current drill program will continue to test the Bruce Channel Zone up and down plunge and along strike, as well as in-fill the 200 metres between the BC 19 series of holes and the BC 21 step out hole. The 7 holes being reported today (please see Schedule “A”) continued to test and extend the Bruce Channel Zone. These holes, like previously reported holes, have consistently intersected broad zones of mineralization as well as multiple high-grade gold zones. Mineralization occurs as coarse-grained visible gold within an extensive vein system related to sulphide zones associated with brecciated structures. These drill results continue to support our regional model which postulates a significant brecciated rim structure within the Gold Eagle property.
On September 28, 2006, Southern Star and Exall announced an agreement to merge. Meetings of shareholders of each of Exall and Southern Star to consider approval of their proposed merger are scheduled for December 4, 2006. See the joint press releases of Exall and Southern Star dated September 28, 2006 and November 7, 2006 for further details regarding the merger.
The Gold Eagle Mine Property drill program is being carried out under the direction of Mr. John F. Whitton, P.Geo, qualified person within the meaning of National Instrument 43-101. Mr. Whitton has reviewed the contents of this news release.
Sample preparation and assay procedures are carried out by SGS Laboratories in Red Lake using standard fire assay method with AA finish and metallics.
For further information on the Gold Eagle Mine Property, please refer to the technical report dated October 27, 2006 entitled “Technical Report on the Gold Mineralization Found in the Bruce Channel Zone, Gold Eagle Mine Property, Red Lake, Ontario”, available at www.sedar.com.
The statements made in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to Exall’s filings with Canadian securities regulators available on www.sedar.com or the Company’s website at www.exall.com.
Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL. Exall is active in its business of gold exploration and development in Red Lake, Ontario with four drill rigs currently active on the Gold Eagle property, as well as oil and gas exploration, development and production from its properties in Alberta, British Columbia, Texas and in the North Sea offshore the United Kingdom. Exall owns 3,398,000 common shares of Southern Star Resources Inc. Exall has 83,453,804 common shares issued and outstanding.
Exall Resources Limited
Stephen G. Roman
Chairman, President and CEO
(416) 368-5146 (FAX)