RX Exploration Inc.

August 24, 2009 16:31 ET

RX Awards Construction Contract for Mine De-Watering Program Water Treatment Plant

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2009) - RX Exploration Inc. (the "Company") (CNSX:RXE) wishes to announce that it has awarded a contract to CDM Inc., (www.CDM.com) for the construction of a water treatment plant to remove arsenic from the Drumlummon Mine waters to enable the mine to be de-watered. CDM Inc., an international consulting, engineering and construction firm, headquartered in Cambridge, Massachusetts, provided the plant design, and will manage the contract and construction through its Helena, Montana office on a turn-key basis for a total cost of US$328,000.

The Company previously announced that it is considering driving a new decline to give access to the Charly Vein, discovered by the Company in 2008 where it calculated initial inferred resources of 155,518 tons containing 70,703 ounces of gold and 1,915,560 ounces of silver. The proposed portal will be collared on surface at mine level 465 and initially driven 2,000 feet to the 600 foot level. The mine is flooded to the 400 foot level.

The Montana Department of Environmental Quality (DEQ), following a lengthy public review process, approved the Company's proposed plan under its exploration license to dispose of groundwater pumped from the Drumlummon Mine. The new treatment plant is being built to satisfy the water treatment stipulations of the DEQ approval. It will be sited in the underground hoist room on the 400 foot level of the Drumlummon Mine adjacent to the collar of the 1,200 foot deep #1 internal shaft. The plant design utilizes proven arsenic-specific adsorption technology to lower arsenic in the water to 3 ppb (parts per billion) or less to ensure that the arsenic content of the discharged water will be equal to or less than the Federal and Montana drinking water standards (10 ppb) and the existing arsenic loading in the adjacent Silver Creek water (3 ppb). Water discharge rates through the plant will initially be at a 40 gallon per minute (gpm) rate and it is anticipated that the discharge will quickly ramp up to the design flow-rate of 300 gpm, well below 400 gpm rate approved by the DEQ. A small head frame has been constructed over the #1 shaft collar to enable controlled lowering of the electric pump on the existing rail in the footwall of the inclined shaft.

From the plant, the water will be pumped through 6 inch diameter HDPE pipe from the shaft collar to the main 400 foot level portal (1,100 feet), continuing buried from the portal to an abandoned rail bed (1,500 feet) and from there into 2,600 feet of perforated 6 inch HDPE pipe buried along the rail bed. The perforated pipe will act as a drain field for the mine water, allowing discharge into the alluvium. A "loop line" to enable return of water from the proposed decline to the treatment plant has been incorporated into the system. Presently, the pipe installation is 90% complete.

Initial plans are to de-water to about the 620 foot level. This will allow access to both the existing 500 and 600 foot levels to inspect old workings and conduct sampling and mapping programs. Once the de-watering is completed, the Company will also be able to complete the proposed decline being considered and connect it to the existing 600 foot level.

CDM anticipates that the water treatment plant will be operational by November 10, 2009.

L. Joseph Bardswich, P.Eng. (Mining)(Ontario) is the qualified person responsible for providing the technical details contained in this press release.

RX Exploration Inc. is a reporting issuer in good standing in the Province of Ontario whose shares are listed on CNSX (Symbol: RXE). There are currently 72,122,578 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.
    John F. O'Donnell
    Chairman of the Board
    (416) 862-7330
    RX Exploration Inc.
    Murray R. Nye
    (204) 989-2434