RX Exploration Inc.
TSX VENTURE : RXE

September 21, 2010 08:30 ET

Diamond Drilling Intersects 57.9 g/t Gold (1.7 opt) and 597.3 g/t Silver (16.9 opt) Over a True Width of 3.11 Metres (10 ft) at the Drumlummon Charly Vein

WINNIPEG, MANITOBA--(Marketwire - Sept. 21, 2010) - RX Exploration Inc. (TSX VENTURE:RXE) (the "Company" or "RX") has increased the strike length and down dip extent of the Charly Vein system at its 100% owned Drumlummon Mine, Marysville, Montana (the "Drumlummon").

A recent 26 hole, 3,779 metre (12,398 foot) underground diamond drill program has extended the Charly Vein 30 metres (100 feet) to the southwest and 36 metres (120 feet) down dip. (In this release oz means troy ounce and opt means troy ounces per ton and g/t means grams per tonne.) Highlights from this drill program include:

  • DDH 10-173 pierced the Charly Vein at the 660 foot level and returned 6.10 metres (20 ft) averaging 57.87 g/t gold (1.68 opt) and 597.33 g/t silver (16.9 opt). The true width of this intercept is estimated to be about 3.05 metres (10 ft); and
  • DDH 10-200 pierced the Charly Vein at the 640 foot level, 40 feet to the northeast of DDH 10-173, and returned 7.32 metres (24 ft) averaging 14.74 g/t gold (0.43 opt) and 432.00 g/t silver (12.60 opt). The true width of this intercept is estimated to be 5.4 metres (17.8 ft).

Significant intercepts from 11 holes are summarized in the chart below. Verification assays from ALS Chemex's Lab in Reno, Nevada are still pending for 15 holes.

All of the holes were collared in Drill Station 8 which was established by driving a drift about 46 metres (150 feet), into the hanging wall of the Charly Vein just below the 500 foot level of the Drumlummon mine.

"These holes have extended the Charly Vein to the 700 level and within 62 metres (204 ft) of the past producing Christmas Vein," commented Murray Nye, President of RX Exploration. "Historical records indicate that a substantial quantity of mineralized material was outlined on the 800 and 900 levels of the Christmas Vein but was never mined."

"The Charly and Christmas Veins appear to be hosted by the same structure and may be connected," stated Mr. Nye. "We have planned a new drill program to test this theory and if proven correct, the resulting vein would have a total strike length of over 335 metres or 1,100 feet."

  From To Width Width Au Ag Au Ag Estimated True
Hole # Ft. Ft. feet metres opt opt g/t g/t Width Feet
 
DDH_10_173 152 156 4 1.22 0.373 1.66 12.79 56.91 2.0'
DDH_10_173 190 210 20 6.10 1.688 16.90 57.87 579.33 10.0'
 
DDH_10_175 181 181.5 0.5 0.15 2.562 191.22 87.84 6556.11 0.25'
DDH_10_175 200 204 4 1.22 0.168 2.95 5.76 101.14 2.0'
 
DDH_10_176 178 186 8 2.44 0.293 13.77 10.05 472.11 3.5'
 
DDH_10_179 201 205 4 1.22 0.320 13.98 10.97 479.14 2.3'
DDH_10_179 213 219 6 1.83 0.297 4.00 10.17 137.03 3.5'
 
DDH_10_191 120 126 6 1.83 0.289 2.76 9.91 94.63 6.0'
 
DDH_10_192 200 206 6 1.83 0.169 3.52 5.78 120.69 5.4'
 
DDH_10_193 128 132 4 1.22 0.997 6.40 34.18 219.26 2.3'
DDH_10_193 194 204 10 3.05 0.265 2.12 9.09 72.82 5.8'
 
DDH_10_197 182 186 4 1.22 1.029 7.38 35.28 252.86 1.44'
DDH_10_197 216 236 20 6.10 0.884 6.69 30.32 229.20 7.3'
DDH_10_197 274 280 6 1.83 0.801 0.50 27.47 17.14 2.2'
 
DDH_10_198 200 206 6 1.83 0.925 15.83 31.73 542.86 1.9'
 
DDH_10_199 268 298 30 9.14 0.196 0.35 6.72 11.89 10.8'
 
DDH_10_200 166 190 24 7.32 0.430 12.60 14.74 432.00 17.8'

The Charly Vein hosts a NI-43-101 compliant inferred resource of 155,518 tons containing 70,703 ounces of gold and 1,915,560 ounces of silver with average grades of 15.4 g/t gold (0.45 opt) and 421 g/t silver (12.3 opt). (Refer to press release dated November 25, 2008). The NI-43-101 resource has not yet been updated to include work completed since November, 2008.

Drill Station 9 will be established 92 metres (300 ft) south of drill station 8 at the 535 foot level. Access to the drill station has commenced via a 46 metre (150 ft) drift being driven into the hanging wall of the Charly and Christmas Veins. Drilling will test the area between the Charly and Christmas veins and into the area below the known mineralization.

The ongoing underground drilling campaign is part of an extensive exploration and development program that includes underground drifting, stoping, ramp and crosscut development as well as metallurgical testing of mineralized stoped material.

Quality Control/Quality Assurance (QC/QA)

All drill core is logged, photographed, and cut in half with a diamond saw. One half is fire assayed in the on-site lab, 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, Reno, NV for verification assaying. Chemex assay results have confirmed the accuracy of the assay results from the on-site lab.

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 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 production from their Drumlummon Mine, a past producing high-grade, bonanza-type, epithermal underground gold and silver mine in Montana. Ore from a current test mining program above the 500 level is being trucked to and processed in a leased mill located in Phillipsburg, Montana.

The Company's shares are listed on TSX-V (Symbol: RXE). There are 111,710,331 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 diamond drilling at or in the vicinity of the Charly Vein and the Christmas Vein.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

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