RX Exploration Inc.
CNSX : RXE

June 21, 2010 16:02 ET

RX Exploration Inc.: Gold Recoveries Exceed 92% in Latest Test-Milling of Drumlummon Mine Feedstock, Montana

WINNIPEG, MANITOBA--(Marketwire - June 21, 2010) - RX Exploration Inc. (CNSX:RXE) (the "Company" or "RX") has completed three initial bulk test-milling runs on mineralized material extracted from the Drumlummon Mine, MT (the "Feedstock") with gold recoveries exceeding 92% and silver recoveries exceeding 87% in the third run.

The first test of 160.4 tons, shown in the table below, was conducted at a small mill in Virginia City, MT with 82.28% recovery of gold and 68.32% recovery of silver.

The next two larger tests of 657.54 and 1899.48 tons were conducted at the 1,000 ton per day ("tpd") mill in Philipsburg that the Company recently leased (the "Mill"). These tests saw increased recoveries as the Company became more familiar with the milling characteristics of the Feedstock. The latest and largest test achieved 92.21% recovery of gold and 87.21% recovery of silver using a combination of gravity and flotation recovery processes. The test results are summarized in the table below. (In this release oz means troy ounce, opt means troy ounces per ton, and conc means concentrate.)

Virginia City Mill  
Dry Tons Metal Calc Grade opt Gravity Conc Oz Floatation Conc Oz  Total Oz In Conc Oz In Tails Recovery  
                 
160.4 Au 0.344 26.115 19.282 45.397 9.779 82.28 %
160.4 Ag 9.142 296.05 705.79 1001.84 464.48 68.32 %
                 
Phillipsburg Mill – Bulk Test 1  
                 
627.54 Au 0.309 94.921 71.208 166.129 27.888 85.63 %
627.54 Ag 6.539 564.63 2904.53 3469.16 634.31 84.54 %
                 
Phillipsburg Mill – Bulk Test 2  
                 
1899.48 Au 0.341 312.77 284.87 597.64 50.459 92.21 %
1899.48 Ag 7.986 2160.37 11068.78 13229.15 1940.32 87.21 %

Additional bulk test-milling runs will be completed at the Mill throughout the summer and fall of 2010. The Company is gradually increasing throughput as crews are trained and experience is gained with the milling characteristics of the Drumlummon Feedstock. The bulk test-milling program is intended to optimize metallurgical recoveries and fully develop the metallurgical flow sheet.

Table concentrates are being fired on site to produce a gold silver dore that is shipped to a refiner. Table mids and flotation concentrates are being trucked to a broker in Reno, Nevada. Payment schedules provide for 97% of contained gold and 95% of contained silver for dore and 95% of each of gold and silver for concentrates.

RX President & CEO, Murray Nye comments: "I can now confirm that the company has received its first modest payment for sale of gold and silver taken from the Drumlummon in the amount of US$61,199. This is from the first bulk sample test and is certainly a milestone in the Company's history. It is an accomplishment that everyone has worked very hard toward and can be extremely proud of."

Charly Vein, Drumlummon Mine

The Company has now drifted in mineralization on the Charly Vein over a strike length of 150.6 metres (502 feet) at the 500 level and the vein remains open to the north and at depth. The Company is continuing to drift to the north while diamond drilling to depth.

The drift to the north was extended 28.35 metres (93 feet) over the past two weeks and the face remains in mineralization. The vein in the new drifting had an average width of 1.92 metres (6.3 feet) and a weighted average grade of 27.77 g/t (0.81 opt) gold and 1594.29 g/t (46.5 opt) silver. The 17 faces sampled included a 2.1 metre (6.4 foot) wide vein with a weighted average grade of 104.91 g/t (3.06 opt) gold and 9325.7 g/t (272.2 opt) silver and a 3.75 metre (12.3 foot) wide vein with a weighted average grade of 52.46 g/t (1.53 opt) gold and 1553.1 g/t (45.3 opt) silver. A total of 495 tons of Feedstock was taken to the stockpile from the latest 93 feet of drift. 

The South Charly Vein drift advanced an additional 28 feet over the past two weeks at the 500 level and was stopped as the vein narrowed in that direction. 112 feet south of the crosscut separating Charly North from Charly South, a raise has been collared and timber stood for a chute and manway. Raising will provide vein grade and width data in the vertical dimension and will be used for stoping access if results warrant. A decline to the 550 level has now been driven 39 metres (130 feet) from the 500 level at a grade of -15%. This decline will provide access to the Charly vein at the 550 level to enable drifting and extraction to the north and south. 

Diamond drilling to test the Charly Vein at greater depth is also underway. A drill station has been established at a distance of 150 feet into the hanging wall of the Charly Vein (east) on the 500 level. From this location diamond drilling (N size) can intersect the Charly Vein down to the 800 level, and the D Block area of the Castletown and Drumlummon veins down to the 900 level. Assays from diamond drilling are pending. 

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 face samples are also sent to an outside lab. Selected duplicates of all samples 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.

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 110,616,331 common shares issued and outstanding.

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.

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
    President
    (204) 989-2434