10.05.2011 15:04:00

RX Exploration Recommences Underground Test Mining Operations at Drumlummon Mine

RX Exploration Inc. (TSX-V: RXE) (OTCQX: RXEXF) ("RX Exploration” or the "Company”) is pleased to announce that with the completion of the new Gunsinger Decline, test mining operations have recommenced last week on both the Empire and the Charly Veins at the company’s 100%-owned Drumlummon Mine in Montana.

In addition, as part of its ongoing program to streamline mining efficiencies and costs, the Company’s wholly-owned Montana subsidiary, Drumlummon Gold Corp, has taken over all underground operations at the Drumlummon Mine from mining contractor, New Millennium Mining & Contracting LLC effective April 16, 2011. RX extends their thanks to New Millennium and their crews for their contribution over the past two years in the successful re-opening of the Drumlummon.

Drumlummon Gold Corp has assembled an experienced mining crew, complete with mine supervisors, safety managers, mine rescue capabilities sufficient to support two rescue teams, as well as maintenance and construction support crews.

"It is gratifying to see how quickly we were able to transition from contractor-driven development mode to the resumption of actual test mining with our own forces” commented Murray Nye, President of RX Exploration. "I am looking forward to the resumption of milling operations with its attendant cash flow, especially given the higher gold and silver prices presently available”.

RX Exploration has completed major modifications to the ventilation system and upgraded the haulage roads. Initial cross-cuts were driven to provide access to the 600 level of the Empire Vein and to the 570 level of the Charly vein.

Excavation of gold/silver vein material started this week with a program of silling-out both the Empire and the Charly veins in preparation for stope development. The excavated material is being stockpiled on surface and will be trucked for processing to one of the two local gold/silver mills that are providing toll milling services. Milling is expected to start by June 1, 2011, and should proceed on a continuous basis thereafter.

Simultaneously, development headings are being driven to gain access to the D Block south pillar on both the 400 and 500 foot level. As operations are ramped up, the Company intends to develop the 450 level as well. Drifting along mineralized vein material on these levels in the D Block zone will also confirm previously released diamond drill results (see RX News releases dated March 15, 2011 and March 30, 2011).

RX Exploration plans to ramp-up this test-mining program to reach a rate of 500 tons per day by the end of August.

Detailed sampling and assaying of the exposed faces during the silling-out program combined with actual metal recoveries from the milling program will provide additional information as to the grades, continuity and metallurgical recoveries of gold and silver values in the vein systems. An aggressive underground core drilling program continues with two contracted electric-hydraulic rigs testing the Empire and Charly veins below the 600 level and a company-owned, air powered drill testing the north end of the Drumlummon vein both above and below the 600 level.

L. Joseph Bardswich, P.Eng. (Mining) (Ontario) is the qualified person responsible for reviewing the technical details in 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 and silver projects within North America that have previously reached advanced exploration, underground development or past gold or silver 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 test mining program was trucked to and processed in a leased mill located in Philipsburg, Montana in the May to December, 2010 period.

The Company’s shares are listed on TSX-V (Symbol: RXE) and on the OTCQX (Symbol: RXEXF). There are 160,103,855 common shares issued and outstanding.

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.

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 conduct additional surface and underground 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.

Nachrichten zu RX Gold & Silver Inc.mehr Nachrichten

Keine Nachrichten verfügbar.

Analysen zu RX Gold & Silver Inc.mehr Analysen

Eintrag hinzufügen
Hinweis: Sie möchten dieses Wertpapier günstig handeln? Sparen Sie sich unnötige Gebühren! Bei finanzen.net Brokerage handeln Sie Ihre Wertpapiere für nur 5 Euro Orderprovision* pro Trade? Hier informieren!
Es ist ein Fehler aufgetreten!