RX Exploration Inc.

April 09, 2007 15:59 ET

RX Exploration Inc. ("RX") Reports on Drilling Programs

TORONTO, ONTARIO--(CCNMatthews - April 4, 2007) - RX (CNQ:RXEX) announces the results of its recent reverse circulation drilling program on the Drumlummon Mine property adjacent to the town of Marysville, Montana, the results from metallurgical test-work on the Drumlummon Tailings and the results of its recent drilling program on its Tudhope and Bryce Townships project near Englehart, Ontario.

Montana Drill Program - Production from the Drumlummon ranks it as first among underground gold producers in the State. The drill program was designed to test areas within known veins which had not been mined, or areas where large pillars remained. The original 5 drill holes of the planned program were completed and an additional 3 holes were drilled to further test an area of the North Star vein where mineralized vein material was identified in drill cuttings from RDH - 3 drill hole. The presence of coarse gold in the recovered cuttings samples is believed to be responsible for a variance in assay results. Standard 30 gram assay charge with Fire Assay procedure and AA finish was used for all samples. In addition a nominal 500 gram charge with a total metallics assay procedure was used for re-assay of intervals higher than 3000 ppb (3 g/t).

All samples were shipped to SGS Minerals Services facilities in Elko, Nevada for sample preparation and then forwarded by SGS to their facilities in Don Mills, Ontario for fire assaying. Significant results are as follows:

Int Grade Au Assay
Hole No. From To Feet g/t oz/ton Method Vein

RDH 1 570 575 5 5.22 0.152 1 Assay Ton Drumlummon

RDH 1 575 580 5 3.35 0.098 1 Assay Ton Drumlummon
2.79 0.081 Total Metallics

RDH 3 340 345 5 67.3 1.963 1 Assay Ton North Star
Split A
Duplicate 63.4 1.849 1 Assay Ton North Star
35.46 1.034 Total Metallics North Star

RDH 3 340 345 5 7.61 0.222 1 Assay Ton North Star
Split B 340 345 5 4.50 0.131 Total Metallics North Star

RDH 7 5 8.69 0.253 1 Assay Ton North Star
Split A 5 3.92 0.114 Total Metallics North Star

RDH 7 5 9.54 0.278 1 Assay Ton North Star
Split B 5 5.85 0.171 Total Metallics North Star

Clyde Boyer, geologist with Contract Geological Services, Sheridan, MT collected each sample at the drill cyclone, bagged, tagged and maintained custody of the samples until they were delivered to the shipping company. Mr. Boyer constructed and saved a chip log using industry standard chip trays. The drill sampling program included the use of duplicates.

Montana Tailings Metallurgical Test-Work - Approximately 750,000 tons of tailings from the Drumlummon Mine were deposited in the Silver Creek drainage, downstream from Marysville. Mining engineer, L. S. Ropes, following an auger drill program in 1933 calculated an average grade of 0.031 0z Au/ton for the main tailings piles (historical, non 43-101 compliant). Later work by others confirmed the presence of sufficient mercury in the tails to classify the tails as a hazard.

A representative sample of 500 lbs was collected from 3 pits in the tailings piles and sent to the Lakefield laboratory facilities of SGS Mineral Services for metallurgical testing. The samples were composited and subjected to Gravity (Knelson Concentrator, Wilfley Table and Mozley Concentrator), Flotation and Cyanide Tests to determine gold, silver and mercury recoveries.

Gravity concentration was unsuccessful in all tests. Both the flotation and the cyanide tests produced significant gold recoveries however mercury remained in all fractions produced in the tests. Due to the presence of mercury in the tails and the concentration test products, and management's analysis of the risks inherent in a project involving mercury contamination, RX has decided to drop the option on the Drumlummon Tailings property.

L.J. Bardswich, P.Eng. (Ontario), a Qualified Person as defined in N.I. 43-101, supervised the drilling and sampling programs on the Drumlummon Mine and Drumlummon Tailings properties. He is responsible for the technical details concerning the Drumlummon properties contained in this news release.

Tudhope-Bryce Townships - Ontario - RX has entered into an agreement with Gold Bay Exploration Inc. ("Gold Bay") to option from them an undivided 50% interest. Gold Bay holds an option on the properties which consist of 44 mineral claims containing 110 claim units or 1,760 hectares. Magnetic and Spectral/IP Resistivity surveys were carried out over a grid consisting of 255 line km in the Honeymoon Lake and Heather Lake areas of the property in 2006, to follow up results of previous surface stripping and sampling for gold. Along the Honeymoon Lake Shear Zone results from the Spectral IP/Resistivity survey outlined two weak to moderate IP chargeability anomalies on Line 800E and 600E. The magnetic survey indicated a younger, non-foliated intrusive which intersected the Honeymoon Lake Shear Zone. Two diamond drill holes, on Lines 800E and 600E, tested the IP chargeability anomalies, and a third tested the younger intrusive, for a total of 567 metres.

Best results from DDH BRY- 1 on 800E were 8.3 g/T gold and 0.235% copper/0.08m, in a grey quartz vein, followed immediately by a light green sericite schist with 30% quartz, 5% sulphides and less than 1% chrome mica carrying 0.8g/T gold and 0.075% copper/0.45 m. Best results from DDH BRY-2 on 600E were 4.4 g/T gold and 0.365 % copper/0.25 m, and 20 m downhole 4.6 g/T gold and 0.093% copper/0.34 m. Both of these intersections occurred in dark altered tuff near the contact with agglomerate, and consisted of quartz-sericite schist containing 3-5% pyrite and less than 1% chalcopyrite. No exploration had been carried out west of Line 700E on the Honeymoon Lake Shear Zone, and these results indicate gold mineralization on the structure is open to the west. The younger magnetically indicated intrusive was not intersected.

Timothy J. Beesley, P.Eng. (Ontario), a Qualified Person as defined in N.I. 43-101, supervised the drilling and sampling programs on the Tudhope and Bryce Township properties and is responsible for the technical details concerning these properties contained in this news release.

Veekay Lake - Ontario - RX is prepared to commence exploration on the Veekay Lake Project. In order to accomplish its business objectives, the Issuer commissioned a program of line-cutting in preparation for an IP survey on the Veekay Lake Project. RX is continuing consultation through its joint venture partner with a First Nation prior to commencing exploration on the Veekay Lake Project.

Management of RX is evaluating the results of the drilling programs with its technical and financial advisors to determine its future plans regarding the Drumlummon Mine and the Tudhope and Bryce Township properties.

RX Exploration Inc. (CUSIP # 78347W107) is a reporting issuer in good standing in the Province of Ontario, whose shares are listed on CNQ (Symbol:RXEX). There are currently 17,693,116 common shares issued and outstanding.

Contact Information

  • RX Exploration Inc.
    Murray R. Nye
    (204) 989-2434
    (204) 989-2433 (FAX)