RX Exploration

Welcome To The RX Exploration HUB On AGORACOM Active in the Pursuit of Gold & Silver

Home Videos Research Press Release Q&A Discussion

almost 17 years ago

RX EXPLORATION INC. COMMENCES UNDERGROUND WORK IN ITS DRUMLUMMON MINE IN MONTANA for immediate release: Toronto, Canada, November 29, 2007 - RX Exploration Inc. (“the Company”) is pleased to announce that it has begun in earnest its underground program to advance its efforts to put back into production the Drumlummon Mine. The Drumlummon is one of the larger former producers of gold and silver in the Western United States and is located near Marysville, Montana. Historical mine production of precious metals was 1.1 to 1.2 million tons with an average grade of 0.5 ounce/ton gold in addition to the silver content. The Drumlummon is of the “bonanza”- type epithermal deposits which are very young and low temperature in origin and which can produce high grades over large widths. For a number of reasons, including a 20-year lawsuit between competing mining companies, there are substantial areas in the mine which have never been developed and have been flooded since 1901. The mining activities of William Wade, the last person to mine the Drumlummon, were curtailed in 1950 when his mill was destroyed by fire. The following programs are planned to test vertical sections of numerous target areas in detail with a view to establishing mineral reserves estimates: Ø rehabilitation of the 400 ft. Level (also known as the “Muskalene Tunnel”); Ø crosscutting to establish drill stations; and Ø underground diamond drilling. Estimates have been presented by prior operators but it is not currently possible to present mineral resource and mineral reserve estimates because estimates in compliance with the current requirements found in National Instrument 43-101 do not exist. Mike Gunsinger of Thunder Bay, Ontario has been engaged by the Company to act as Director of Underground Operations. Mike was employed for 40 years by Patrick Harrison and Company, underground mining contractor, whose clients included majors such as Inco and Noranda as well as smaller mining companies. Mike achieved increasingly higher levels of management including mine supervisor and mine manager and was involved in numerous underground mining operations. Upon his retirement he established his own underground contracting company and has been involved in several underground projects in Utah and Montana for Kennecott, Clifton Mining, and Hanover Gold. Mike has reported on the progress of the work to date and advises that all work is being completed in accordance with Mine Safety and Health Administration (MSHA) standards. Ø An all weather road has been constructed from the county road to the portal of the Drumlummon Mine. This will permit the underground program to continue year-round without regard to the winter snow. Ø A mine water discharge line has been installed from the portal to a recently constructed holding pond. The line has been buried to avoid freezing in the winter. Ø The Montana Power Company is currently in the process of installing permanent power to the mine. Ø Blue Range Engineering Co. has been awarded a contract to rehabilitate the Muskalene Tunnel from the portal to the No. 1 Shaft and from the No. 1 Shaft to the “9-hour Workings”, a total distance of approximately 2,800 feet. Underground equipment has been moved to the site, and to date, about 150 feet has been completed. Between the No.1 Shaft and the “9-hour Workings”, periodic diamond drill stations will be installed. The Company has retained the services of IBK Capital Corp. (“IBK”) to act as its agent to raise an aggregate amount of $8.5 million through private placements as reported in the Company’s news release dated November 15, 2007. Timothy J. Beesley, P.Eng. of T.J. Beesley Geological Services Inc., Toronto is a “qualified person” within the meaning of National Instrument 43-101 and is responsible for the technical information contained in this news release. 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. (CUSIP # 78347W107) is a reporting issuer in good standing in the Province of Ontario whose shares are listed on CNQ (Symbol: RXEX). 1,400,000 common shares were issued on November 20, 2007 pursuant to the exercise of share purchase warrants and there are currently 24,443,675 common shares issued and outstanding. CNQ 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.