RX Advancing Drumlummon Exploration
Winnipeg, Canada – RX Exploration Inc. (CNSX: RXE) (the “Company” or “RX”) is successfully advancing the exploration of the Drumlummon Mine, Marysville, Montana (the “Drumlummon”) on several fronts including underground exploration drifting and development, underground diamond drilling, and bulk metallurgical testing.
Drumlummon Exploration Drifting & Development
Charly Vein - The Company has now drifted in mineralization on the Charly Vein over a strike length of 186.2 metres (611 feet) on the 500 level of which a total of 14.9 metres (49 feet) at the two extremities are considered marginal grade. For planning purposes, the central 171.3 metres (562 feet) delineates the strike length of the Charly vein at this depth. The main internal exploration ramp is currently being driven to the 550 level to enable exploration drilling of the Xmas and Charly veins to depth.
A raise was established from 96 to 112 feet south of the Charly Vein North and South intersection (“Charly N-S”). Sub-drifts were driven at the 470 level to the north and south from this raise. Generally, the south sub-drift was found to have marginal grade/width, however high grade gold and silver values were encountered in the north sub-drift. The weighted average of channel samples across 13 consecutive faces of the north sub-drift was 75.87 grams per tonne (g/t) or 2.213 ounces per ton (“opt”) gold (“Au”) and 822.79 g/t or 23.998 opt silver (“Ag”) over an average true width of 2.2 metres (7.2 feet). The average includes a high of 449.49 g/t or 13.11 opt Au and 2036.23 g/t or 59.39 opt Ag over a true width of 1.5 meters (5 feet).
D-Block - Headings were driven from the main internal exploration ramp to intersect the D-block (114.3 metres or 375 feet west of the Charly) on the 450 level and on the 500 level. A by-pass drift around a caved area on the old 500 level was driven to provide ventilation and a second escape-way to the 400 level from the lower levels for exploration drillers, geologists and development miners working below.
A total of 805.6 metres (2,643 feet) in development headings has been driven below the 400 level as of June 30, 2010. The accompanying chart summarizes the development headings and distances of each to June 30, 2010.
Underground Drill Stations
Previously, a 150 foot cross cut was driven east into the hanging wall of the Charly Vein on the 500 level to establish an underground diamond drilling station at the intersection of Charly N-S. A second cross-cut located 200 feet to the north was driven 45 feet east to establish a second drill station.
The ramp has been continued in a southerly direction at a -15 degrees slope towards the 550 foot level, where it is planned to establish a third drill station in the hanging wall from which drill holes will be able to test the Xmas vein. Future plans call for the continuation of the ramp back to the north towards the 600 level to facilitate the establishment of hanging wall drill stations to enable further exploration of the Charly Vein at depth. Cross-cuts from the ramp to the Charly Vein will provide access to enable drifting along the vein itself on the 550 level and extraction of this material.
Bulk Metallurgical Test Program
Bulk testing of mineralized material from the Drumlummon (the “Feedstock”) continues at the milling facility in Philipsburg, MT (the “Mill”). The purpose of this program is to optimize metallurgical recoveries and fully develop the metallurgical flow sheet.
From June 16 to June 30, 2010, a total of 1,926.9 tons of Feedstock was milled bringing the total tonnage processed at the Mill to 4,453.94 tons up to June 30, 2010. The average daily throughput during the June 16-30 period was 175 tons per day (“tpd”). Concentrates from the bulk metallurgical testing program at the Mill were delivered to smelter brokers and refiners, yielding settlement quantities totaling 1,206 oz Au and 33,717 oz Ag. Net smelter return cash value of this quantity at prevailing prices is calculated to total US $1,985,100 of which US $1,766,063 is attributable to concentrate produced during the month of June.
Mill feedstock was derived from a blend of development headings on the Charly Vein and from lower grade gob backfill and sloughed wall rock mucked from old stopes above the 400 level of the Drumlummon vein. Recoveries to date (based on settlement metal quantities) are calculated to be 88.43% for gold and 86.92% for silver. Minor variations in the mill flow sheet are being considered in order to further optimize mill recoveries for different ore types.
Quality Control/Quality Assurance (QC/QA)
Underground face samples, AX core and mill samples are fire assayed at the Company’s in-house laboratory. All drill core is logged, photographed, and cut in half with a diamond saw. One half is bagged and sent for assay, while the other half is archived and stored on site. N sized core samples are sent to an outside lab for assaying. Duplicates of 25% of the N core samples and selected duplicate samples from the in-house lab are sent to ALS Chemex Lab, Elko, NV for verification assaying. For QC/QA purposes standards, blanks, and repeats are randomly inserted into the sample stream.
L. Joseph Bardswich, P.Eng. (Mining) (Ontario) is the qualified person responsible for reviewing this press release for content and accuracy.
Total Length of Development Headings below 400’ Level as of June 30, 2010
|Heading||Total to Date||Total to Date||June Total||June Total|
|Main Internal Exploration Ramp||725||221||160||48.8|
|X-cuts for drill stations||195||59.4|
|#1 Charly North||337||102.7||303||92.4|
|#1 Charly South||262||79.9||262||79.9|
|#1 Charly South Raise||30||9.1||30||9.1|
|#1 Charly South Sub North||74.5||22.7||42.5||13|
|#1 Charly South Sub South||102.5||31.2||37||11.3|
|Charly north raise||30||9.1||30||9.1|
|500 level Escape-way||57||17.4||57||17.4|
About RX Exploration
RX Exploration Inc. is a gold exploration and development company whose strategy is to re-examine gold projects within North America that have previously reached advanced exploration, underground development or past gold production. The Company is currently focused on re-starting the Drumlummon Mine, it’s past producing high-grade, bonanza-style, epithermal underground gold and silver mine in Montana. The Company has installed a water treatment system at the mine and mining activities are fully permitted.
For further information please contact: Murray R. Nye, President at (204) 989-2434
The Company’s shares are listed on CNSX (Symbol: RXE). There are 111,436,331 common shares issued and outstanding.
CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This news release contains “forward-looking information” (within the meaning of applicable Canadian securities laws) and “forward-looking statements” (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “potential”, “estimate”, “propose”, “project”, “outlook”, “foresee” or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company’s anticipated operational plans and activities including its plans to conduct additional bulk test-milling runs, to continue development drifting, to continue a decline to the 550 level, and to continue diamond drilling.
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management’s expectations regarding its ability to complete its development work as expected. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of the Company’s continued development work, technical, safety or regulatory issues.
Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company’s securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.