RX Exploration Inc.

May 12, 2008 19:22 ET

RX Exploration Inc.: Historic High Grade Gold and Silver Structures Confirmed

New Veins Discovered at Drumlummon Mine

TORONTO, ONTARIO--(Marketwire - May 12, 2008) - RX Exploration Inc. ("the Company") (CNQ:RXEX) is pleased to release the first assay results from its underground diamond drill program at the Drumlummon Mine at Marysville, Montana which intersected numerous and parallel high grade gold and silver veins. Some of the veins were anticipated from historical information while others are considered to be new discoveries.

Following are significant intersections (over 0.15 oz/t gold) which were all drilled from the 400 foot level of the mine.

Drill Hole From To Length True Gold Silver
(ft) (ft) (ft) Width (ft) (oz/t) (oz/t)
DDH 08 #1 652 675 23 14 0.10 0.30
(Including) 665 675 10 6 0.15 0.40
DDH 08 #2 171 176.5 5.5 (gob) 3 0.30 0.60
47 63 16 14 0.27 0.91
65 77 12 10 0.34 3.85
DDH 08 #5 392 398 6 5 1.10 31.5
411 415 4 3 0.22 2.02
430 434 4 3 0.83 12.36
102 106 4 2 0.46 0.40
DDH 08 #6 125 133 8 4 0.46 0.35
143 147 4 2 1.20 2.15
81.5 98 16.5 12 0.22 0.38
DDH 08 #7 -----------------------------------------------
514 520 6 4 0.57 4.79

DDH 08 #2 was stopped while still in this vein because of drilling difficulties resulting from the drill having traversed a stope. This intersection is estimated to be about 200 ft west of the intersection of the same vein by the Company in a surface drill program where assays of almost 2 oz gold/ton over 5 feet were received as described in the Company's press released dated April 4, 2007. The Company intends to continue drilling this vein from surface when it acquires another surface drill expected to arrive in about one week.

DDH's 08 #5, #6 and #7 were drilled from Drill Station 2 along with DDH's #8 through #12 which are awaiting complete assay results. The drill has been moved to Drill Station 3 which is 200 feet north of Drill Station 2 to test the strike extension of the multiple vein structures encountered at Drill Station 2.

The Company's will be posting on its website (www.rxexploration.com) vertical sections of the first three holes from Drill Section 2 for which completed assays have been received.

For a number of reasons, including a 20-year lawsuit between competing mining companies, there are substantial areas in the Drumlummon Mine which have never been developed and have been flooded since 1901. John F. O'Donnell, Chairman of the Board stated that "there appears to be a strong consensus that the Drumlummon ceased operations prematurely, initially because of the monumental litigation which resulted in the operator losing the mine to satisfy the judgment against it, and subsequently by the total destruction of the mill by fire in 1950." Mike Gunsinger, Director of Underground Operations, stated that "these early results are supportive of that proposition and the intent of the current drilling at Drill Station 3 is to attempt to add strike length to the extraordinary vein structures encountered at Drill Station 2."

The Drumlummon Mine is one of the larger former producers of gold and silver in the Western United States. The Drumlummon is of the "bonanza"- type epithermal deposits which are very young and low temperature in origin and which can produce high grades over large widths. Drilling is being conducted from recently rehabilitated sections of the 400 foot level of the mine. Resource estimates have been presented by prior operators which are not in compliance with the current requirements found in National Instrument 43-101. The intent of this drill program, and follow-up drill programs as required, is to establish mineral resources on a NI 43-101 compliant basis with respect to the substantial undeveloped sections within the Drumlummon Mine and extensions thereof, leading to a preliminary feasibility study.

Tom Gignoux is the consulting geologist supervising the drilling at the Drumlummon Mine. He is a qualified person within the meaning of National Instrument 43-101 and is responsible for the technical information contained in this news release. The core from the drill holes have been under his supervision from the time they were brought out of the mine. They are currently in secured containers on the Drumlummon property. Assays were performed by Robert W. Prather, Anaytical Chemist, of Norris Lab, Norris Montana, using the fire-assay method. Rejects of higher grade assays are being sent by Mr. Gignoux to Swastika Labs, Swastika, Ontario for check assays.

RX Exploration Inc. (CUSIP # 78347W107) is a well-funded reporting issuer in good standing in the Province of Ontario whose shares are listed on CNQ (Symbol:RXEX). There are currently 37,686,508 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.

CNQ 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
    Website: www.rxexploration.com