RX Exploration Inc.
TSX VENTURE : RXE

October 14, 2010 16:38 ET

RX Exploration Inc.: Diamond Drilling Results on D-Block and Charly Vein

WINNIPEG, MANITOBA--(Marketwire - Oct. 14, 2010) - RX Exploration Inc. (TSX VENTURE:RXE) (the "Company" or "RX") is pleased to provide an update on ongoing drilling activity and results on the D-Block and Charly Vein Zones at the Company's 100% owned Drumlummon Mine, Marysville, Montana (the "Drumlummon").

D-Block

The D-Block mineralization has now been confirmed to a strike length of 150 feet (45.7 metres). This mineralized zone averages about 20 feet wide (6.1 metres) between the 400 and 450 levels. The zone remains open for expansion down dip as well as to the south. More drilling is planned below the 450 level. (In this release oz means troy ounce and opt means troy ounces per ton and g/t means grams per tonne.) Assay highlights from D-Block include:

  • Hole DDH-10-111 intersected 22 ft (6.7 metres) averaging 0.62 opt gold (21.23 g/t gold) and 1.69 opt silver (57.88 g/t silver). The estimated true width is 18.7 ft (5.7 metres).
  • Hole DDH-10-113 intersected 19 ft (5.8 metres) averaging 0.28 opt gold (9.69 g/t gold) and 1.65 opt silver (56.51 g/t silver). The estimated true width is 14.4 ft (4.4 metres).
  • Hole DDH-10-165 intersected 8 ft (2.4 metres) averaging 0.84 opt gold (28.63 g/t gold) and 7.31 opt silver (250.34 g/t silver). The estimated true width is 6 ft (1.8 metres).

Murray Nye, President of RX stated, "These high grade intercepts in the D-Block zone suggest that there still is a significant amount of gold and silver mineralization around old stopes that was originally considered waste during historic mining operations."

Charly Vein

The remaining assays from the last 18 holes drilled into the Charly Vein from Drill Station 8 have been received. This drill station is situated about 46 metres (150 feet) east of the Charly Vein (in the hanging wall) just below the 500 foot level of the Drumlummon mine. Highlights include:

  • DDH 10-152 intersected 2 ft (0.6 metres) averaging 2.23 opt gold (76.37 g/t gold) and 90.7 opt silver (3,106 g/t silver). The true width of this intercept is estimated to be about 1.5 ft (0.46 metres);
  • Further down this hole a 14 ft intercept (4.3 metres) averaged 0.22 opt gold (7.53 g/t gold) and 6.30 opt silver (215.75 g/t silver).

"The underground drill program at Drill Station 8 has been successful in extending the Charly Vein along strike as well as down dip," commented Mr. Nye.

Significant intercepts in both the D-Block zone and Charly Vein are summarized in Tables 1 and 2, respectively.

TABLE 1 Selected D-Block Assays

Drill Hole From To Intercept Estimated True Width Gold Silver
DDH (ft) (ft) (ft) (m) (ft) (m) (opt) (g/t) (opt) (g/t)
                     
09-105 32 36 4 1.2 2 0.6 0.40 13.80 2.77 94.9
10-111 32 54 22 6.7 18.7 5.7 0.62 21.16 1.69 57.9
10-113 14 33 19 5.8 14.4 4.4 0.28 9.69 1.65 56.5
10-115 23 41 18 5.5 8.7 2.7 0.49 16.7 16.5 565.1
10-120 14 40 26 7.9 19.8 6.0 0.32 10.96 0.91 31.2
10-123 62 74 12 3.7 7.8 2.4 0.44 15.14 2.51 86.0
  98 106 8 2.4 5.2 1.6 0.78 26.71 9.32 319.2
10-124 31 53 22 6.7 8.6 2.6 0.29 9.93 1.33 45.6
10-130 34 38.5 4.5 1.4 3.9 1.2 0.30 10.27 0.61 20.9
10-131 36 40 4 1.2 3.4 1.0 0.55 18.84 1.12 38.4
10-132 52 56 4 1.2 1.5 0.4 0.19 6.51 1.21 41.4
10-134 33.5 41.5 8 2.4 7 2.1 0.39 13.29 5.4 184.9
10-138 168 174 6 1.8 4.5 1.4 0.19 6.75 0.61 20.9
  182 188 6 1.8 4.5 1.4 0.19 6.51 0.22 7.5
10-139 12 14 2 0.6 2 0.6 0.71 24.32 3.92 134.3
10-144 110 114 4 1.2 3 0.9 0.31 10.62 0.38 13.0
10-150 10 24 14 4.3 14 4.2 0.21 7.05 1.42 48.6
10-162 64 66 2 0.6 1.4 0.4 0.79 26.98 0.88 30.1
10-163 48 50 2 0.6 1.8 0.6 12.57 430.34 1.57 53.8
10-165 78 80 2 0.6 1.7 0.5 2.08 71.23 41.78 1430.8
  94 102 8 2.4 6 1.8 0.84 28.63 7.31 250.3
10-169 115 121 6 1.8 2.4 0.7 0.16 5.38 0.44 15.1

Of the 54 holes drilled to outline mineralization in and around the D-block zone, 18 intersected the historic Sampson Stope on the Drumlummon Vein and were terminated. An additional 17 holes contained no significant assays and helped define the boundaries of the D-Block zone between the 400 and 450 levels.

TABLE 2 Selected Charly Vein Assays

Drill Holes From To Intercept Estimated True Width Gold Silver
DDH (ft) (ft) (ft) (m) (ft) (m) (opt) (g/t) (opt) (g/t)
                     
10-151 106 112 6 1.8 5.1 1.6 1.69 57.88 17.20 589.0
10-152 84 86 2 0.6 1.5 0.5 0.62 21.23 6.38 218.5
  116 118 2 0.6 1.5 0.5 2.23 76.37 90.70 3106.2
  140 154 14 4.3 10.5 3.2 0.22 7.53 6.30 215.8
10-153 226 232 6 1.8 3.5 1.1 0.22 7.53 0.70 24.0
10-156 134 136 2 0.6 1.5 0.5 0.67 22.95 50.22 1719.9
  160 164 4 1.2 3.0 0.9 0.76 26.03 20.20 691.8
  178.7 180.3 1.6 0.5 1.1 0.3 6.48 221.92 53.86 1844.5
10-157 180 182 2 0.6 1.4 0.4 0.80 27.33 110.5 3784.3
10-158 90 92 2 0.6 1.1 0.3 0.47 16.09 0.36 12.3
  172 174 2 0.6 1.1 0.3 1.10 37.67 5.30 181.5
10-159 185 191 6 1.8 2.0 0.6 0.44 15.07 7.60 260.3
  241 247 6 1.8 2.0 0.6 0.45 15.41 0.80 27.4
  261 265 4 1.2 1.4 0.4 4.67 159.90 2.10 71.9
  382 388 6 1.8 1.4 0.4 0.72 24.66 0.41 14.0
10-170 186 188 2 0.6 0.3 0.1 0.91 31.16 9.07 310.6
10-171 208 210 2 0.6 0.4 0.1 1.35 46.23 0.77 26.4
10-172 198 205 7 2.1 2.2 0.7 0.57 19.52 1.8 61.6
10-174 90 92 2 0.6 1.2 0.4 0.46 15.82 25.66 878.8
  142 146 4 1.2 2.5 0.8 0.83 28.29 3.07 105.1
  180 184 4 1.2 2.5 0.8 0.70 23.80 17.56 601.4
10-177 40 42 2 0.6 1.5 0.5 0.42 14.45 0.48 16.4
  130 134 4 1.2 3.1 0.9 0.63 21.44 16.79 575.0
  146 152 6 1.8 4.7 1.4 0.19 6.61 1.84 63.0
  164 168 4 1.2 3.1 0.9 0.35 11.85 22.25 762.0
10-178 204 206 2 0.6 1.4 0.4 0.31 10.55 1.45 49.7
  210 216 6 1.8 4.1 1.3 0.22 7.60 0.28 9.7
10-195 212 214 4 1.2 2.2 0.7 0.23 7.98 0.39 13.4
  220 222 2 0.6 1.1 0.3 0.30 10.41 8.82 302.1
10-196 154 156 2 0.6 1 0.3 0.92 31.64 6.47 221.6
  193 195 2 0.6 1 0.3 0.46 15.75 21.34 730.8

Of the 31 holes drilled from Drill Station 8, only 4 holes contained no significant intercepts and helped define the boundaries of Charly mineralization.

Surface Drill Program

A surface drilling program has recently commenced to test a number of targets identified from historical data or from previous RX surface drilling. One drill rig is now operating and a second drill rig has been ordered for later this month.

These targets are along strike to the north of known Drumlummon mineralized zones and include the Empire Vein, the North Drumlummon zone, and Frankie Vein. A total of 6,000 metres (19,248 feet) of surface diamond drilling is planned in two phases over the next several months. 

Underground Exploration

The next phases of underground exploration will largely be conducted to the south of known mineralized zones and include the Charly Vein, Christmas Vein, Drumlummon Vein, and Castleton Vein. The Company is developing underground access to establish Drill Station 9 from which 60 underground drill holes are planned for a total of 8,000 meters (25,664 feet) over the next several months.

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)

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 of duplicates have confirmed the accuracy of the assay results from the on-site lab. Half core samples from the initial holes in the program were sent to Norris Labs for fire assaying. Duplicate assaying at Chemex and at the on-site lab confirmed the reported results in the above tables.

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 111,815,331 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 surface and underground diamond drilling at a number of targets and totaling 14,000 meters overt several months.

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