RX Exploration Inc.

November 16, 2010 16:55 ET

RX Exploration Receives $17,750,000 from Exercise of Warrants

WINNIPEG, MANITOBA--(Marketwire - Nov. 16, 2010) - RX Exploration Inc. (TSX VENTURE:RXE)(OTCQX:RXEXF) ("RX Exploration" or the "Company") has received approximately $17,750,000 from the exercise of 44,849,474 common share purchase warrants since July 1, 2010, the beginning of the Company's financial year. A total of 156,065,805 common shares are now issued and outstanding. The Company's cash position now stands at about $19,150,000.

The Company is proceeding with a number of initiatives relating to the development or further exploration of the Drumlummon Mine, Marysville, Montana (the "Drumlummon"), including:

  • A new 757 metre (2,485 foot) main decline is currently being driven to access the 600 level of the Drumlummon. This decline will provide a secondary access/escape way into/from the Charly Vein workings and an additional ventilation airway. It will also enable the Company to build toward an extraction capacity estimated at 1,500 tons per day of mill feed and waste rock, and provide a platform from which to diamond drill unexplored portions of the Drumlummon, Frankie and Empire Veins at depth.
  • Metallurgical test-work is continuing at the leased Philipsburg Mill with feed being provided by a test mining program operating from the 400 level access tunnel.
  • A 14,000 metre (45,932 foot) diamond drilling program, to be conducted over a period of about 8 months from both surface and underground, is also underway.

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 its Drumlummon Mine, a past producing high-grade, bonanza-type, epithermal underground gold and silver mine in Montana. Ore from a current test mining program 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) and on the OTCQX (Symbol: RXEXF). There are 156,065,805 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 drive a new decline to the 600 level for a planned total distance of 757 metres, its plans to continue test mining and milling programs, and its plans to complete 14,000 metres of diamond drilling.

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
    (204) 989-2434