Corporate Overview
RX Exploration (CNQ Symbol: RXEX) 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 gold prices of today can obviously enhance the economics of many past projects when gold prices were considerably lower. That being said, RX Exploration also recognizes that today’s economics often require a project with 1,000,000 ounces of gold potential. By re-examining past projects but keeping our focus on those we believe have potential for size, we feel that we can enhance shareholder value. We are also keenly aware of the old adage that says “The best place to find a gold mine is from within, or next to old gold mine.”
Our primary focus is on the Drumlummon Mine Project, Montana, USA
Financed by the Rothschilds’ in the late 1800’s, the Drumlummon Mine proved to be one of the largest producers of gold and silver in the western United States. It is reported to have produced $29,000,000 of gold and silver primarily between 1883 and 1910 at historical prices (ie US$20 - $35 oz/Gold). Geological reports state the Drumlummon is of the “bonanza” epithermal deposit type, which can produce high gold grades over large widths.
The majority of production at the Drumlummon is reported to have to come from the shallower levels of the mine. It is developed at the 400, 700, 1000 and 1600 foot levels. In 1910, the mine shut down and was flooded at the deeper levels when the operators lost a court case alleging they had mined onto the neighbor’s adjacent property. The operators appealed 5 times to the Montana and US Supreme Courts. At the final appeal to the US Supreme Court in 1910 there were 12 lawyers present and the cumulative legal costs are reported to have been in excess of $400,000 (in early 1900’s US dollars). The neighboring company then gained control of the Drumlummon but lacking wherewithal, never mined the deposit. Substantial areas of the mine at depth have been flooded since 1910 and effectively have been “out of bounds” for exploration since that time.
RX Exploration has consolidated the Drumlummon mine claims, the former neighbor’s claims, and additional claims along strike. RX Exploration rehabilitated the workings at the 400 foot level during 2007.
Diamond drilling from underground commenced in March, 2008 and the first results were reported in May, 2008. Historic gold structures were confirmed and new discoveries were made. Refer to the News Section. More information is provided within the Corporate Presentation, or the Drumlummon Project section, or the NI 43-101 geological report.