RX Exploration Inc.
CNSX : RXE

May 17, 2010 12:29 ET

RX Leases Mill Facility for Bulk Testing of Drumlummon Feed

WINNIPEG, MANITOBA--(Marketwire - May 17, 2010) - RX Exploration Inc. (CNSX:RXE) (the "Company" or "RX") has leased a gravity/flotation mill facility (the "Mill") to enable bulk metallurgical and process test-work to be completed on mineralized material (the "Feedstock") from the Drumlummon Gold & Silver Mine, Marysville, MT, taken as part of the bulk sampling program currently underway.

The Mill is located in Philipsburg, MT, which is about 114 road miles from the Drumlummon Mine. The Mill has a capacity of 1,000 tons per day and includes a jaw plus cone crushing circuit, two 300 HP conical grinding mills, a jig plus Wilfley table gravity circuit, six banks of flotation cells, and a licensed tailings storage facility. The Mill is being leased from May to December, 2010 for US$30,000 per month plus US$30 per dry ton milled. RX is responsible for utilities, consumables and manpower costs while operating.

Previous metallurgical test-work conducted at Norris Labs, Norris, MT on the Feedstock indicates that high recoveries of both gold and silver can be achieved in a bulk-sulphide flotation concentrate. A significant portion of the gold and silver was also shown to be recoverable by gravity methods and additional gravity test-work is being conducted by Knelson Gravity Solutions, B.C. As reported in the Company's May 3, 2010 press release, gold and silver dore has been produced from a gravity concentrate, as well as flotation concentrates.

RX has hired an experienced mill crew and mill superintendent, mainly from the Phillipsburg area, and has provided safety training in compliance with a training program previously submitted to, and approved by, the Mine Safety & Health Administration (MSHA). Contract truckers from Marysville and Phillipsburg have been engaged to transport the Feedstock from the Drumlummon Mine to the Mill, and trucking commenced late last week. Trucking costs are expected to be US$20.50 per ton.

Initially, RX plans to operate the Mill on a single shift basis at an expected rate of 100 to 150 tons per day. As the milling process is optimized the Company may ramp up the milling operation. The objective of the bulk testing program is to optimize metallurgical recoveries. Over the course of the program, the Company will be releasing additional information on metal recoveries and metallurgical flow sheet development.

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 Inc. is a gold exploration and development 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, its past producing high-grade, bonanza-style, epithermal underground gold and silver mine in Montana. The Company has installed a water treatment system at the mine and mining activities are fully permitted.

The Company's shares are listed on CNSX (Symbol: RXE). There are 109,006,331 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
    President
    (204) 989-2434