News
RX Continues To Encounter High Grade Gold And Silver And Receives Water Discharge Permit From Montana DEQ
March 24, 2009
Toronto, Canada – RX Exploration Inc. (the “Company”) is pleased to announce that the Montana Department of Environmental Quality (DEQ), following a lengthy public review process, has approved the Company’s proposed plan under its exploration license to dispose of groundwater pumped from the Drumlummon Mine. The approval is subject to certain stipulations, including water treatment and monitoring provisions, which the Company believes are neither onerous nor unreasonable. The approval letter from the DEQ can be viewed on the RX website at www.rxexploration.com.
The mine is flooded to the 400 foot level. There is a need to access lower levels of the mine, down to the 800 foot level, to continue exploration from the lower levels.
Company to access Charly Vein
The Company intends to directly access an area of the mine where it recently calculated initial inferred resources of 155,518 tons containing 70,703 ounces of gold and 1,915,560 ounces of silver as reported in its news release dated November 25, 2008. The resources, which are NI 43-101 compliant, are contained in a vein system consisting of three parallel veins, collectively called the Charly vein.
This significant zone was discovered in virgin rock 400 feet into the hanging wall of the Drumlummon vein between Shafts No. 1 and 2 during underground diamond drill testing of the tonnage and grade potential of the unmined area within the mine called the “D” Block which was identified by prior mine operators.
“D” Block
The current focus of exploration is on the “D” Block. In the 1980’s prior operators reported the presence of 160,000 tons of mineralized material in “D” Block, below the 400 foot level, grading 0.4 oz/ton gold and 4.0 oz/ton silver. These figures are historical in nature, are not 43-101 compliant, and should not be relied upon by investors.
Sludge samples were recently collected from “jack-leg” percussion holes drilled into “D” Block at the 400 foot level over a strike length of 115 feet. These samples yielded significant gold and silver values including the following:
|
Drill Hole |
From (ft) |
To (ft) |
Length (ft) |
Gold (oz/ton) |
Silver (oz/ton) | ||
|
A-2 |
0 |
13 |
13 |
0.566 |
2.8 | ||
|
B-3 |
0 |
14 |
14 |
0.637 |
9.48 | ||
|
(including a 2 ft section grading 2.31 oz/ton gold and 2.84oz/ton silver and a further 2 ft section grading 1.98 oz/ton gold and 55.77 oz/ton silver) | |||||||
|
A-4 |
10 |
20 |
10 |
0.649 |
6.79 | ||
|
(including a 2 ft section grading 2.052 oz/ton gold and 23.15oz/ton silver) | |||||||
|
B-4 |
12 |
18 |
6 |
0.491 |
0.973 | ||
These jack-leg intersections represent approximate true width.
A new cross-cut is presently being driven into the hanging wall rock of the “D” Block to allow for the excavation of a diamond drill station. This will facilitate core drilling of the “D” Block below the 400 foot level. A second cross-cut and drill station is being planned in the footwall rock of the “D” Block to facilitate core drilling of the “D” Block above the 400 foot level.
Mineralized vein material, when encountered, is being stockpiled for possible future treatment.
Christmas Vein
In its news release dated December 10, 2008, the Company reported certain high grade results on the Christmas Vein section of the mine and that additional assays were pending. In addition to the high grade results already reported, the Company is pleased to report new assay results from additional holes drilled into the Christmas Vein. True widths of the intersections have not yet been determined.
|
Drill Hole |
From (ft) |
To (ft) |
Length (ft) |
Gold (oz/ton) |
Silver (oz/ton) | |||
|
DDH 08 #68 |
330 |
340 |
10 |
0.194 |
4.98 | |||
|
(including a 2 ft section grading 0.764 oz/ton gold and 21.4 oz/ton silver from 332 ft to 334 ft) | ||||||||
|
DDH 08 #68 Cont’d |
358 |
362 |
4 |
0.535 |
1.57 | |||
|
(including a 2 ft section grading 0.958 oz/ton gold and 2.25oz/ton silver before hitting a void believed to be an old stope) | ||||||||
|
DDH 08 #69 |
411 |
415 |
4 |
0.651 |
2.46 | |||
|
(including a 2 ft section grading 1.192 oz/ton gold and 4.22oz/ton silver from 411 ft to 413 ft. A void, believed to be an old stope, was encountered at 415 ft) | ||||||||
The Christmas vein, discovered by Wade in the 1940-1953 period, appears to be on strike with the Charly vein, and may be an extension of the NI 43-101 compliant initial inferred resources of the Charly vein referred to above. The company has not yet calculated a resource on the Christmas Vein system.
L. Joseph Bardswich, P.Eng. (Mining) (Ontario), is the qualified person responsible for providing the technical details contained in this press release.
The Company’s Chairman, John O’Donnell, stated that these results continue to encourage him as to the potential for developing very significant tonnage of high grade gold and silver over large widths in this “bonanza”- type epithermal deposit.
For further information please contact: John F. O’Donnell, Chairman of the Board, at (416) 862-7330 or Murray R. Nye, President, at (204) 989-2434.
RX Exploration Inc. is a reporting issuer in good standing in the Province of Ontario whose shares are listed on CNSX (Symbol: RXE). There will be 58,584,078 common shares issued and outstanding following the completion of the private placement.
CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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.