A tunneling-type magnetoresistance (MR) as large as 158% is observed at T = 300 K in a polycrystalline Zn0.41Fe2.59O4 sample, in which the Zn0.41Fe2.59O4 grains are separated by insulating alpha-Fe2O3 boundaries. The huge room-temperature MR is attributed to the high spin polarization of Zn(0.41)Fe(2.59)O4 grains and antiferromagnetic correlations between magnetic domains on both sides of the insulating alpha-Fe2O3 boundary. The MR exhibits strong temperature dependence below 100 K and its magnitude is enhanced to reach 1280% at 4.2 K, which may arise from the Coulomb blockade effect.