Rhyolite Resources Ltd. holds 100% of the Paxson gold project, through its wholly-owned United States subsidiary Paxson Resources USA. The Paxson project is located in the eastern Alaska Range, approximately 50 km southwest of Tok, Alaska. Diamond drilling in 2011 encountered significant gold mineralization in multi-target areas.
Highlights from the 2011 Diamond Drill Program
Shalosky Zone
The Hi-Low Zone
The Hunter Zone
Paxson Location Map From 1998 through 2001, Grayd Resources (USA) Inc. and Placer Dome (USA) Inc. spent a total of approximately $1.3 million exploring for gold deposits on the current Paxson property. In total, 26 line-km of gridding, 23.5 line-km of geophysics, 24 man-days of prospecting, the collection of 1,023 soil samples, the collection of 325 rock samples, 72 metres of hand trenching and 1,743 metres of diamond drilling in 12 holes comprising 1,174.7 metre were completed.
A total of 285 soil samples assayed greater than 100 parts per million gold and 13 assayed greater than 1 gram per tonne gold. Out of the 325 rock samples collected, 165 assayed greater than 100 parts per billion gold and 61 assayed greater than 1 gram gold per tonne.
In 2007, acquired the Paxson property through an internal staking program and identified three priority areas for follow-up; the Shalosky Zone, the Hunter Zone and the Low Zone.
2001 Shalosky Diamond Drill Hole Summary and 2010 Validation Results
Intervals shown are mineralized lengths of core; geometry is not well enough understood to reliably calculate true widths.
During the 2010 field season, a total of 50 rock samples and 21 soil samples were collected during the program. Highlights from rock sampling of highly altered metasediments on the Paxson project include:
Shalosky Zone - Drill Holes In 2010 individual rock samples collected along the Shalosky zone returned from 0.01 g/t to 36.6 g/t gold. A total of 8 soil samples were collected over the Shalosky zone yielding values from 0.09 to 0.141 parts per million ("ppm") gold.
In 2011, Rhyolite tested the Shalosky zone with eight drill holes comprissing 1,388 meters. The drill holes covered a 600 meter strike length portion of the structure down to depth of 175 meters below surface.
The Shalosky zone is hosted in a north-northeast trending shear zone that contains quartz-sulphide veining, brecciation and fault gouge. The mineralized structure has been traced in drill holes and surface samples along strike for 150 metres before disappearing under overburden at both ends of the exposed extent, while the historic gold-in-soil anomaly extends for over 1-km along strike.
Moving 5 metres to the west, 2 contiguous 1 metre samples returned 3.51 g/t and 3.03 g/t gold.
A further 150 metres to the west, channel sampling returned a weighted average of 3.76 g/t gold over 4 metres with a perpendicular channel sample yielding 6.23 g/t gold over 0.5 metre. Individual rock samples collected along the Low zone returned from 0.01 g/t to 18.95 g/t gold.
In 2011, Rhyolite tested the Low area with four diamond drill holes comprising 536 meters. This drilling covered a 160 meter area.
The Low zone is hosted in a steeply dipping, east-west trending shear zone that contains quartz-sulphide veining, brecciation and fault gouge. The mineralized structure has been intermittently traced in surface samples along strike for 150 metres before disappearing under overburden at both ends of the exposed extent.
A 2001 diamond drill hole collared approximately 50 metres east of the Hunter trench and reportedly returned 0.8 gram gold per tonne over 4.4 metres. Field indications suggest that the mineralized target was not adequately tested by the single drill hole.
In 2011, Rhyolite tested the Hunter target with two diamond drill holes comprising 323 meters.
Targets that have been identified but not yet diamond drill tested include the OTG showing, where grab samples collected in 2001 returned values of up to 5.3 grams gold per tonne and float samples returned up to 4.8 grams gold per tonne and massive sulphide target in the northern portion of the Paxson property.
Highlights from the 2011 Diamond Drill Program
Shalosky Zone
| Drill Hole | From (m) | To (m) | Interval (m)* | Weighted Grade (g/t Gold) |
| WG11-01** | 56.1 | 77.1 | 21.0 | 1.9 |
| Includes | 56.1 | 59.1 | 3.0 | 7.2 |
| Includes | 70.1 | 71.8 | 1.7 | 6.3 |
| And | 97.5 | 99 | 1.5 | 2.7 |
| WG11-02** | 88.3 | 111.4 | 23.1 | 3.5 |
| Includes | 90.4 | 103.6 | 13.2 | 5.4 |
| WG11-03 | 112 | 113.7 | 1.7 | 0.9 |
| And | 118.2 | 120.2 | 2.0 | 1.6 |
| And | 131.4 | 231.5 | 100.1 | 1.0 |
| Includes | 193 | 210.8 | 17.8 | 1.9 |
| Includes | 221 | 231.5 | 10.5 | 2.5 |
| WG11-04 | 85.8 | 99.1 | 13.2 | 2.2 |
| Includes | 85.8 | 91 | 5.2 | 4.5 |
| Includes | 85.8 | 86.9 | 1.1 | 13.7 |
| WG11-11 | 65.5 | 79.4 | 13.9 | 1.0 |
| Includes | 76.9 | 78.8 | 1.9 | 4.8 |
| WG11-12 | 107.6 | 176.6 | 69.0 | 1.7 |
| Includes | 139.6 | 153.3 | 13.7 | 3.0 |
| WG11-13 | 178.9 | 189 | 10.1 | 2.1 |
| Includes | 182.4 | 185.7 | 3.3 | 3.2 |
| WG11-14 | No Significant Values -- failed to reach target depth for hole WG11-13 Intercept. | |||
The Hi-Low Zone
| Drill Hole | From (m) | To (m) | Interval (m)* | Weighted Grade (g/t Gold) |
| WG11-05** | 19.5 | 21.9 | 2.4 | 3.2 |
| And | 26.9 | 54.3 | 27.4 | 1.9 |
| Includes | 38.7 | 52.3 | 13.6 | 3.4 |
| Includes | 40.2 | 43.0 | 2.8 | 14.2 |
| WG11-06 | 31.7 | 37.2 | 5.5 | 4.2 |
| Includes | 35.0 | 37.2 | 2.2 | 8.6 |
The Hunter Zone
| Drill Hole | From (m) | To (m) | Interval (m) | Weighted Grade (g/t Silver) |
| WG11-10 | 13.4 | 17.3 | 3.9 | 256.1 |
| Includes | 14.6 | 15.5 | 0.9 | 963.0 |
| And | 22.2 | 22.9 | 0.7 | 14.1 |
| And | 30.8 | 31.4 | 0.6 | 12.4 |
History
Paxson Location Map From 1998 through 2001, Grayd Resources (USA) Inc. and Placer Dome (USA) Inc. spent a total of approximately $1.3 million exploring for gold deposits on the current Paxson property. In total, 26 line-km of gridding, 23.5 line-km of geophysics, 24 man-days of prospecting, the collection of 1,023 soil samples, the collection of 325 rock samples, 72 metres of hand trenching and 1,743 metres of diamond drilling in 12 holes comprising 1,174.7 metre were completed.
A total of 285 soil samples assayed greater than 100 parts per million gold and 13 assayed greater than 1 gram per tonne gold. Out of the 325 rock samples collected, 165 assayed greater than 100 parts per billion gold and 61 assayed greater than 1 gram gold per tonne.
In 2007, acquired the Paxson property through an internal staking program and identified three priority areas for follow-up; the Shalosky Zone, the Hunter Zone and the Low Zone.
2001 Shalosky Diamond Drill Hole Summary and 2010 Validation Results
| Target Tested | Hole # | Dip | Azimuth | Depth (m) | From (m) | To (m) | Width (m) | 2001 Gold (g/t) |
2010 Gold (g/t) |
Variation (%) |
| Shalosky | WG01-01 | -45 | 340 | 152.4 | 69.0 | 107.2 | 38.2 | 0.8 | 0.8 | nominal |
| Including | 75.0 | 79.7 | 4.7 | 2.1 | 1.3 | -38 | ||||
| including | 105.1 | 107.2 | 2.1 | 3.8 | 6.4 | +68.4 | ||||
| 117.5 | 118.8 | 1.3 | 12.2 | 17.8 | +45.9 | |||||
| Shalosky | WG01-02 | -50 | 340 | 170.1 | 95.6 | 113.1 | 17.4 | 1.2 | 1.2 | nominal |
| Including | 97.1 | 104.1 | 6.9 | 2.2 | 2.0 | -9.1 |
During the 2010 field season, a total of 50 rock samples and 21 soil samples were collected during the program. Highlights from rock sampling of highly altered metasediments on the Paxson project include:
- 8.85 g/t gold (weighted average) from a 7.0-metre continuous chip sample at the Shalosky zone;
- 13.37 g/t gold (weighted average) from a 3.0-metre continuous chip sample at the Low zone and;
- 50.80 g/t gold from a rock grab sample at the Hunter prospect.
Shalosky Zone
The Shalosky zone is defined by a 1,100 m by 50 m to 500 m greater-than-100-part-per-billion gold-in-soil geochemical anomaly. However, compilation work and prospecting in 2011 indicate that the controlling Shalosky structure may extend for a much greater strike distance. Prospecting along the southwestern projection of the Shalosky structure by Rhyolite in 2011 has intermittently identified siliceous breccia in float and subparallel structures for over 1.6 kilometres west of hole WG11-01.
Shalosky Zone - Drill Holes In 2010 individual rock samples collected along the Shalosky zone returned from 0.01 g/t to 36.6 g/t gold. A total of 8 soil samples were collected over the Shalosky zone yielding values from 0.09 to 0.141 parts per million ("ppm") gold.
In 2011, Rhyolite tested the Shalosky zone with eight drill holes comprissing 1,388 meters. The drill holes covered a 600 meter strike length portion of the structure down to depth of 175 meters below surface.
The Shalosky zone is hosted in a north-northeast trending shear zone that contains quartz-sulphide veining, brecciation and fault gouge. The mineralized structure has been traced in drill holes and surface samples along strike for 150 metres before disappearing under overburden at both ends of the exposed extent, while the historic gold-in-soil anomaly extends for over 1-km along strike.
Low Zone
Located 3 kilometres east-southeast of the Shalosky gold-in-soil anomaly at the Low Zone, a series of 3 contiguous 1 metre long samples were collected in 2010 and returned gold assays of 8.75 g/t, 18.95 g/t and 12.4 g/t for a weighted average of 13.37 g/t gold.Moving 5 metres to the west, 2 contiguous 1 metre samples returned 3.51 g/t and 3.03 g/t gold.
A further 150 metres to the west, channel sampling returned a weighted average of 3.76 g/t gold over 4 metres with a perpendicular channel sample yielding 6.23 g/t gold over 0.5 metre. Individual rock samples collected along the Low zone returned from 0.01 g/t to 18.95 g/t gold.
In 2011, Rhyolite tested the Low area with four diamond drill holes comprising 536 meters. This drilling covered a 160 meter area.
The Low zone is hosted in a steeply dipping, east-west trending shear zone that contains quartz-sulphide veining, brecciation and fault gouge. The mineralized structure has been intermittently traced in surface samples along strike for 150 metres before disappearing under overburden at both ends of the exposed extent.
The Hunter Zone
Located 1-km south-southeast of the Shalosky zone, the Hunter prospect was defined in 2001 when a 50 metre long trench was sampled with a reported 6.3 metre section returning 9.6 g/t gold. During the 2010 field season, Rhyolite collected grab samples from the trench that returned 5.37 g/t gold and 50.80 g/t gold, while a 2.5 metre channel sample returned 1.0 g/t gold. Individual rock samples collected along the Low zone returned from 0.01 g/t to 50.80 g/t gold. A total of 6 soil samples were collected over the Hunter zone yielding values from 0.003 to 0.134 ppm gold.A 2001 diamond drill hole collared approximately 50 metres east of the Hunter trench and reportedly returned 0.8 gram gold per tonne over 4.4 metres. Field indications suggest that the mineralized target was not adequately tested by the single drill hole.
In 2011, Rhyolite tested the Hunter target with two diamond drill holes comprising 323 meters.
Regional Targets
In the north central portion of the Paxson property, the HD Saddle target was drilled tested by two diamond drill holes that returned 0.5 gram gold per tonne over 10.9 metres from 41.3 metres down hole and no significant intercepts, respectively.Targets that have been identified but not yet diamond drill tested include the OTG showing, where grab samples collected in 2001 returned values of up to 5.3 grams gold per tonne and float samples returned up to 4.8 grams gold per tonne and massive sulphide target in the northern portion of the Paxson property.
