RX Exploration Inc.

November 30, 2009 09:00 ET

RX Continues to Encounter High Grade Gold & Silver Values From Drill Holes & New Exploration Raise

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2009) - RX Exploration Inc. (CNSX:RXE) (the "Company") is pleased to provide the following up-date on the company's development activities at the Drumlummon Mine in Marysville, Montana.


- In the D-Block zone, two new underground diamond drill holes intersected high-grade gold mineralization, including one intercept in hole 09-95 which averaged 0.538 opt (ounces per ton) gold and 4.54 opt silver over 4.5 ft. This occurred within a 12.5 ft. interval which averaged 0.218 opt gold and 2.27 opt silver consisting of GOB (waste rock backfill in stopes).

- In the Charly vein system, three new underground diamond drill holes were drilled to define the top of the vein system. Hole 09-102 intersected 1.167 opt gold and 16.70 opt silver over 12 ft (true width 9.6 ft).

- An Exploration Raise driven on a newly discovered narrow vein system situated just north of the D-Block zone has produced 280 tons of material with a diluted average grade of 0.501 opt gold and 23.3 opt silver. At US$1,150 per ounce gold and US$18.50 per ounce silver the 280 tons that has been stockpiled has an estimated gross value of US$282,016 (US$1,007.20 per ton or a gold equivalent grade of 0.876 opt.).

"We are very excited with the progress we've made so far this year towards our goal of restarting operations at the Drumlummon Mine," commented Murray Nye, President of RX Exploration." "With the necessary financing and permits in place we are now aggressively working towards accessing both the Charly Vein system and the D-Block zone in order to commence test mining and resource expansion."

The Charly Vein system hosts an inferred NI 43-101 compliant resource of 155,518 tons containing 70,703 ounces of gold and 1,915,560 ounces of silver as reported in the Company's news release dated November 25, 2008.

In the 1980's prior operators reported the presence of 160,000 tons of mineralized material in the D-Block zone, below the 400 foot level, grading 0.4 opt gold and 4.0 opt silver. These figures are historical in nature, are not NI 43-101 compliant, and should not be relied upon by investors.

Development Work

A new cross-cut (X-Cut 3 East) has been driven into the hanging wall rock of the Drumlummon vein in the area of the D-Block zone. In addition, a hanging wall drift (drift 3 South) was driven to enable the excavation of diamond drill stations to facilitate core drilling of both the D-Block zone and the Charly vein system below the 400 foot level.

This hanging wall drift (drift 3 South) encountered a narrow vein of high grade gold and silver which was about 16 inches wide and averaged 1.939 opt gold and 121.85 opt silver.

An exploration raise was driven along the vein in an attempt to determine its extent. A total of 11 rounds were blasted and three vertical channel samples were cut from each successive face and sent for assay. The vein thickness fluctuated between 4 inches and 72 inches over the 33 channels. The weighted average thickness and grade of these samples were 27.6 inches grading 1.306 opt gold and 60.79 opt silver. Allowing for the resultant dilution as the raise was being driven, it is estimated that the stockpiled material from this raise consists of 280 tons averaging 0.501 opt gold and 23.3 opt silver.

"D" Block Drill Holes

DDH 09-95 through 09-98 were drilled with the air-powered CP-65 core drill with Azimuths between 250 and 260 degrees, at various dips to ascertain the location of old workings and areas of mineralization.

Hole# From To Length Gold Silver Comments
(ft) (ft) (ft) (opt) (opt)
09-95 38 40 2 0.406 42.54
GOB (Waste rock backfill in
107.5 120 12.5 0.218 2.27 stope)
Including 115.5 120 4.5 0.538 4.54 GOB
09-97 84 86 2.0 0.108 2.43

Charly Vein Drill Holes

DDH 09-99, 09-102 and 09-103 were drilled with the CP-65 drill on azimuth of 120 degrees, at shallow dips, to ascertain the "top" of the Charly vein system (estimated from previous drilling to top out above the 500 foot level).

Hole# From To Length True Width Gold Silver Comments
(ft) (ft) (ft) (ft) (opt) (opt)
09-99 213 215 2.0 1.6 1.112 2.34 Dip -8 degrees
09-102 240 252 12.0 9.6 1.167 16.70 Dip -21 degrees
including 244 250 6.0 4.8 2.153 32.2
283 286 3.0 2.4 0.231 19.25
09-103 222 224 2.0 1.6 2.452 4.37 Dip -14 degrees

These results indicate that the Charly vein appears to be dipping at -74 degrees in this area. The 12 foot intercept in 09-102 is calculated to be 9.6 feet true width and lies at a mine level elevation of 487 feet. Intercepts in holes 99 and 103 indicate the vein is topping out above this elevation.

Holes 09-100 and 09-101 were drilled from surface and have been previously reported on.

Quality Control/Quality Assurance (QC/QA)

All drill core is logged and cut in half with diamond saw or core splitter. 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.

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

About RX Exploration

RX Exploration (CNSX:RXE) 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 the Drumlummon mine, a Bonanza-grade past producing underground gold-silver mine in Montana.

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 82,781,578 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.
    Murray R. Nye
    (204) 989-2434