RX Exploration Inc.

May 03, 2010 18:30 ET

RX Exploration Inc.: Drifting Along Charly Vein Yields Average Grades of 41 g/t Gold (1.2 opt) and 973 g/t Silver (28.4 opt)

WINNIPEG, MANITOBA--(Marketwire - May 3, 2010) - RX Exploration Inc. (CNSX:RXE) (the "Company") completed 58.6 meters (192 ft) of drifting along the Charly Vein at the Company's Drumlummon Gold Silver Mine, Montana to the end of April, 2010. Assays taken across the face of the vein after each blast yielded a cumulative average grade of 41 g/t gold (1.2 opt) and 973 g/t silver (28.4 opt) over an average drift width of 2.5 meters (8.1 ft). The Charly Vein system was discovered by the Company through drilling in 2008 and is open along strike as well as to depth. ("g/t" is grams per tonne and "opt" are ounces per short ton)

Assay Results and Development

The Charly Vein, which has never been exploited, is situated 91.5 meters (300 ft) east of the past producing Drumlummon vein. Grades reported are based on 76 samples taken across 18 drift faces with each successive drift face spaced an average of 3.1 meters (10 ft) apart. The drift has been advanced a total distance of 58.3 meters (191.5 ft) along the vein, including the initial cross cutThe samples were fire assayed for gold and silver in an in-house lab with check assays done by Norris Lab in Norris, Montana.

Underground development consists of two exploration drifts at the 500 ft level, one heading south westwards for 32.3 meters (106 ft) and another north eastwards for 22.3 meters (73 ft). The Charly vein in the northern drift has an average width of 1.4 meters (4.5 ft). The drift was mined to an average width of 1.9 metres (6.3 ft). The results are summarized in the tables below and represent the diluted grades.

The Company believes that these results demonstrate good continuity of mineralization and are representative of the Charly vein average grade including dilution. The Charly Vein remains open along strike and down dip and the 500 level exploration drifts will be extended until they reach the end of the vein system.

Additional exploration drifts below the 500 level are expected to be developed over the next few months. They will be accessed from the Company's newly developed decline which starts at the 400 level access adit.

The Company has also commenced development of two exploration drifts on the 450 level on the "D" Block vein system. At April month end, 24.4 meters (80 ft) of drifting was completed. Further information on "D" Block, including assay results and mined widths will be reported in May.

Bulk Sampling Program

A calculated total of 1,454 tons of mineralized material has been stockpiled at surface from the two Charly Vein drifts, ready for inclusion in the Company's ongoing bulk sampling program. If these assay results are representative, this stock pile would contain approximately 1,780 ounces of gold and 41,300 ounces of silver. The first 107 ton composite bulk sample from the mine workings has already been completed. Gold and silver dore has been produced from a gravity concentrate, as well as flotation concentrates.

Full results and analysis from bulk samples from the Charly Vein system and other locations within the mine will be released in the coming weeks. This will add valuable information with respect to metal recoveries and metallurgical flow sheet development for the high-grade ore that may be produced from the Drumlummon mine.

Results from Charly Vein South Drift
Location Width (ft.) Length (ft.) Tons Gold g/tonne Silver g/tonne Gold oz/ton Silver oz/ton
Ch S 0-7 7.4 8.0 59.2 106.0 1,883 3.1 55.0
Ch S 7-14 6.0 14.0 84.0 75.3 1,907 2.2 55.7
Ch S 14-19 9.0 5.0 45.0 78.7 2,010 2.3 58.7
Ch S 19-27 8.8 8.0 70.4 30.8 1,041 0.9 30.4
Ch S 27-35 11.0 8.0 88.0 24.0 657 0.7 19.2
Ch S 35-43 11.0 8.0 88.0 37.6 562 1.1 16.4
Ch S 43-59 10.5 16.0 168.0 58.2 976 1.7 28.5
Ch S 59-69 10.0 10.0 100.0 65.0 1,175 1.9 34.3
Ch S 69-88.5 11.5 19.5 224.3 44.5 1,715 1.3 50.1
Ch S 88.5-98.5 8.0 10.0 80.0 54.8 1,527 1.6 44.6
Total     1,006.9 54.8 1,320 1.6 38.54
Results from Charly Vein North Drift
Location Width (ft.) Length (ft.) Tons Gold g/tonne Silver g/tonne Gold oz/ton Silver oz/ton
Ch N 0-14 6.0 14.0 84.0 33.9 469 0.99 13.7
Ch N 14-24 6.0 10.0 60.0 19.2 397 0.56 11.6
Ch N 24-31 6.0 7.0 51.8 6.8 27 0.20 0.8
Ch N 31-37 7.4 6.0 48.0 4.5 123 0.13 3.6
Ch N 37-43 8.0 6.0 48.0 20.2 39 0.59 1.2
Ch N 43-54 8.0 11.0 47.3 10.9 164 0.32 4.8
Ch N 54-63 4.3 9.0 45.0 4.4 34 0.13 1.0
Ch N 63-73 5.0 10.0 63.0 5.8 92 0.17 2.7
Total     447.1 14.7 200 0.43 5.85

Quality Control/Quality Assurance (QC/QA)

All drill core is logged, photographed, and cut in half with a diamond saw. One half is bagged and shipped to Norris Lab in Norris, MT, while the other half is archived and stored on site. For QC/QA purposes standards, blanks, and repeats are randomly inserted into the sample stream. Selected samples are sent to ALS Chemex Lab, Elko, NV for verification assaying. Metric to Imperial conversion rate: 1 gram per tonne = 0.0292 troy ounce/ ton 

Ben D Porterfield (M.Sc. Mineral Economics) (Arizona) is the qualified person responsible for providing the technical details contained in this press release. Bill Fisher (P.Geo.), a director of the Company, has reviewed the press release for content and accuracy.

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, its 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.

The Company's shares are listed on CNSX (Symbol: RXE). There are 103,170,431 common shares issued and outstanding.

Forward Looking Statements: Statements made in this news release that relate to future plans, expectations, events or performances are forward looking statements. Such statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • RX Exploration Inc.
    Murray R. Nye
    (204) 989-2434