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Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
Drumlummon Gold Mine, Montanna
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Drumlummon Gold Mine, Montanna

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Drumlummon Gold Mine, Marysville, Montana, USA

Drumlummon Gold Mine, Marysville, Montana, USA

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  • CORPORATE OVERVIEW
  • CORPORATE OVERVIEW
  • CORPORATE OVERVIEW
  • PROJECT SUMMARY
  • PROJECT REGIONAL LOCATION
  • MINE HISTORY
  • MINE HISTORY
  • PROJECT LAND TENURE
  • PROJECT MINERALIZATION
  • PROJECT MINERALIZATION AND TARGETS
  • PROJECT POTENTIAL
  • PROJECT PERMITTING
  • PROJECT SOCIAL/ENVIRONMENTAL
  • PROJECT TIMELINE
  • Transcript

    • 1. Last Updated May 26, 2010 Drumlummon Mine Project Marysville, Montana
    • 2. Safe Harbor <ul><li>The following presentation may include certain “forward-looking statements” within the meaning of the United States Private Litigation Reform Act of 1995 and applicable Canadian Securities Laws. All statements, other than statements of historical fact, included in the presentation, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of RX Exploration Inc., are forward-looking statements. Words such as “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “intend”, “believe” and other similar expressions are forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather reflect our current views with respect to future events and are subject to risks, uncertainties, assumptions and other factors, and actual results and future events could differ materially from those anticipated in such statements. There can be no assurance that such forward-looking statements will prove to be accurate. </li></ul><ul><li>Some of the important factors that could cause actual results to differ materially from our expectations are disclosed under the heading “Risk Factors” and elsewhere in documents filed from time to time with the Canadian provincial securities regulators. We base our forward-looking statements on information currently available to us and we do not assume any obligation to update them, except as required by law. </li></ul><ul><li>An additional Cautionary Note to Investors – In the event that we use certain terms in this presentation, such as “resource”, “measured resource”, “indicated resource” and “inferred resource”, U.S investors are cautioned that, while such terms are recognized and required by Canadian Securities Laws, the United States Securities and Exchange Commission does not recognize them. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination has been made. U.S. investors should not assume that all or any part of measured or indicated resources will ever be converted into reserves. In addition, “inferred resources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Accordingly, information concerning descriptions of mineralization in this presentation may not be comparable to information made public by companies that are subject to the SEC’s Industry Guide 7. </li></ul>
    • 3. Corporate Overview <ul><li>RX Exploration Inc.'s strategy is to re-examine mineral projects within North America that have previously reached advanced exploration, underground development or past gold or silver production. </li></ul>3
    • 4. Share Capital 1 As of May 25, 2010 Conditionally approved for Tier 1 listing on TSX-V – refer to May 25, 2010 Press Release
    • 5. The RX Team <ul><li>Directors </li></ul><ul><li>John F. O’Donnell, B.A. (Econ.), L.L.B., Chairman </li></ul><ul><li>Murray R. Nye, Director, President, CEO </li></ul><ul><li>Maxwell A. Polinsky, B.Comm. (Hon.), Director, CFO </li></ul><ul><li>Edward L. Ellwood, MBA, Director </li></ul><ul><li>William J. Fisher, P.Geo., Director </li></ul><ul><li>John A. Ryan, CGA, Director </li></ul><ul><li>Paul V. Teodorovici, Director </li></ul><ul><li>Technical </li></ul><ul><li>New Millenium Mining & Contracting LLC – Mine Operator </li></ul><ul><li>L. Joseph Bardswich, P. Eng. – Mining Engineer </li></ul><ul><li>Harold (Mike) Gunsinger – Underground Consultant </li></ul><ul><li>Ben Porterfield, M.Sc. – Consulting Geologist </li></ul>
    • 6. Drumlummon Mine Project Overview <ul><li>One of the largest past gold producers in the western USA with reported total production of US$29,000,000 @ US$20 – US$35 oz/gold (from 1881 – 1910) </li></ul><ul><li>Originally financed by the Rothschilds. Lawsuit disrupted production in early 1900’s and deeper levels have remained flooded since 1901 </li></ul><ul><li>Developed at numerous levels to 1,600 feet with 2 shafts, power and year round road access </li></ul><ul><li>“ Bonanza” style epithermal deposit which can produce high grades over large widths </li></ul><ul><li>RX consolidated the project and commenced exploration in 2007 </li></ul><ul><li>April, 2010 - bulk sampling commenced </li></ul><ul><li>May, 2010 - 1,000 ton per day permitted mill leased </li></ul><ul><li>Exploration ongoing </li></ul>
    • 7. The Drumlummon Mine, Marysville Montana <ul><li>Marysville, MT is located 25 miles North-West of Helena, Montana’s capital city. </li></ul><ul><li>The Mill is located in Philipsburg, MT, 114 miles by road South-West from Marysville. </li></ul>Philipsburg Marysville HELENA Drumlummon Mine and Mill Locations
    • 8. H istory of the Marysville Mining District *From NI 43-101 report. 8 Mine Discovery Production* (Au, Ag) Comments Drumlummon 1876 $29,000,000, 1.1 – 1.2 mt Average 0.5 oz/t Au Bald Butte Prior to 1886 $3,500,000 Vein width to 22 ft Gloster Prior to 1880 $3,500,000 Free gold; cp + py Bald Mountain 1875 $3,500,000 Cut-off 0.25 oz/t Au, to 15 ft wide Shannon 1885 $2,700,000 Veins 7 – 14 ft wide Belmont 1878 $2,500,000 Veins 2 – 10 ft wide Empire 1880 $2,500,000 Reportedly averaged $30/t in Au, Ag, Cu, and Pb Penobscot 1873 $1,230,000 Quartz-carbonate with free gold and silver Blue Bird-Hickey n.a. $600,000 Veins from 4 – 12 ft, free gold and silver
    • 9. History of the Drumlummon Mine 400 Level 1600 Level 700 Level D Block Charly Vein Xmas Vein D-block ~ Late 1800’s
    • 10. History of the Drumlummon Mine 1876 : Drumlummon deposit discovered by Thomas Cruse 1883 - 1901 : Montana Co. puts mine into production. Loses claim dispute in 1901 and floods mine to 400 foot level. 1902 – 1910: Production continues above 400 foot level by Montana Co. while claim appeals in progress. Loses appeal. 1910 - 1929: St Louis Company takes ownership. Leases mine periodically. Production sourced above the 400 foot level. Market crash of ’29 stops production. 1941 - 1951: Montana Rainbow Co. dewaters and restarts production in 1946. Mill burns down in 1950 and production ceases. Rebuilding the mill not economically viable. 2007 : RX consolidates all land claims, initiates surface drilling, completes NI 43-101 report. Begins underground rehabilitation. 2008: Charly Vein system discovered 2010 : RX reopens the mine 35,685 oz Au 388,375 oz Ag 775,000 oz Au eq 26,453 oz Au 140,393 oz Ag 21,284 oz Au 138,773 oz Ag
    • 11. Drumlummon Property Map <ul><li>Original Drumlummon property ( outlined in black below ): </li></ul><ul><ul><li>26 patented mining claims (290 acres) and 68 staked claims (1,390 acres) </li></ul></ul><ul><li>Bald Butte properties (adjacent to SW boundary, not yet shown on map) </li></ul><ul><ul><li>22 patented claims and 50 federal claims covering ~ 1,000 acres </li></ul></ul>Strike of Drumlummon Veins. Area remains open (“blue sky”) A A’
    • 12. Drumlummon Today Diagrammatic Illustration of Mineral Zones Outlined by RX to Date. 400 Level 1600 Level 700 Level 1000 Level D Block Charly Vein Xmas Vein D-block 500 level cross-cut through Charly Vein
    • 13. Drumlummon Today <ul><li>The existing workings are being utilized to explore and re-develop the Drumlummon </li></ul>9 Hour Workings South Surface Drumlummon Workings Surface Setup Previously Disputed Ground Xmas Vein Shaft No.2 Shaft No.1 1600 Level 1000 Level 700 Level 400 Level Charly Vein 9 Hour Workings Xmas Vein South North Exploration Target Exploration Target Exploration Target Exploration Target Drumlummon Workings 400 Level 700 Level Shaft No.1 Shaft No.2 1000 Level 1600 Level Previously Disputed Ground A A’ Charly Vein
    • 14. Drumlummon Development philosophy “Drill for Structure…” 14 57.8 21.1 6.8 (true width 3 m) 16.5 9.7 DDH 10-115 45.2 19.76 8.0 (true width 3 m) 12.3 4.3 DDH 10-120 572.6 41.1 3.7 76.8 73.2 DDH 09-102 1,821.3 9.9 2.4 3.6 1.2 DDH 08-29 380.6 51.8 2.3 145.5 143.2 DDH 08-28 350.4 33.5 1.8 125.6 123.8 DDH 08-26 1,393.0 44.1 2.9 125.8 122.9 DDH 08-15 1,081.4 37.8 1.8 121.4 119.5 DDH 08-05 Silver (g/t) Gold (g/t) Width (m) To (m) From (m) Drill Hole
    • 15. Drumlummon Development philosophy “… drift for Grade” April, 2010 – Underground Ramp Crosses Charly Vein – Returns 3.13 oz (41 g/t) GOLD & 55.6 oz (1,901 g/t) SILVER Over 7.4 Foot Vein Width (refer to April 12, 2010 Press Release) 16 1904 g/t 55.6 opt 107.2 g/t 3.13 opt 2.3 metres 7.4 ft Silver - Average Gold - Average Total Width 2.7 opt 0.52 opt 12 inches 0.04 opt 0.03 opt 18 inches 126.7 opt 4.47 opt 12 inches 10.8 opt 5.57 opt 12 inches 37.0 opt 2.50 opt 23 inches 202.1 opt 7.84 opt 12 inches Silver (Ag) Gold (Au) Composite Sample Width Channel Samples Across Charly Vein Cross-cut
    • 16. Charly Vein Resource – November, 2008 NI 43-101 Report <ul><li>NI 43-101 Compliant Inferred Resource calculated from 59 drill holes drilled into the Charly Vein System at November, 2008 </li></ul><ul><li>A cutoff mining width of 5 feet was used as well as a minimum grade of 0.1 oz/t Au </li></ul>16 Grade Ag Grade Au 12.3 16.6 7.3 12.2 (oz/t) 0.45 0.48 0.53 0.39 (oz/t) 1,915,560 70,703 422 15.6 155,518 Total Inferred Resource 804,341 23,414 569 16.5 48,494 C 291,053 21,097 250 18.2 39,740 B 820,166 26,192 418 13.4 67,284 A Ounces Ag Ounces Au (g/t) (g/t) Tonnage 400E Vein
    • 17. Near-Term Exploration Potential <ul><li>Objectives : Consolidate medium-term mine plan and drill/drift on multi-million ounce gold/silver potential along strike and at depth </li></ul><ul><li>Continue exploration of D Block, Charly Vein and newly discovered mineralization to upgrade known resource </li></ul><ul><ul><li>Charly vein remains open to the north, south and at depth; may represent the extension of the partially mined high-grade Xmas Vein. </li></ul></ul><ul><li>Continue rehabilitating historical workings over 1500 m. to the south in order to access and drill “Previously Disputed Ground” and beyond </li></ul><ul><ul><li>This ground was never mined due to the historic claim dispute </li></ul></ul><ul><li>New drill stations in the hanging wall of the Charly vein enables exploration of new and existing targets laterally as well as at depth </li></ul><ul><li>Additional land has been acquired adjacent to the Drumlummon property for future exploration </li></ul>
    • 18. Fully Permitted Leased Mill <ul><li>1,000 ton per day mill leased from May, 2010 to December, 2010 to conduct bulk metallurgical and processing test-work </li></ul><ul><li>Located 114 miles from the mine at Philipsburg, MT and accessible by paved highway ($20.50 per ton hauling cost) </li></ul><ul><li>Two separate 500 ton per day circuits including crusher, regrind mills, gravity and flotation circuits </li></ul><ul><li>Includes fully permitted tailings storage facility </li></ul><ul><li>Lease cost is $30,000 per month plus $30 per ton milling fee </li></ul>
    • 19. Permitting and Community Relations <ul><li>RX has received all permits and exemptions required for production: </li></ul><ul><ul><li>Approval of exploration license including water discharge by the Montana Department of Environmental Quality </li></ul></ul><ul><ul><li>Approval of small miner exemption which permits the company to mine so long as surface operations do not exceed five acres </li></ul></ul><ul><ul><li>Approval of the alternative mine rescue capabilities by the U.S. Mine Safety and Health Administration </li></ul></ul><ul><ul><li>Approval of the ventilation, escape and evacuation plan by the U.S. Mine Safety and Health Administration </li></ul></ul><ul><li>RX has been conducting regular Town Hall meetings to encourage community involvement and has addressed all of the concerns of the people of Marysville </li></ul>
    • 20. Bulk Sampling and Exploration Schedule
    • 21. 406 – 138 Portage Ave. East Winnipeg, Manitoba Canada R3C 0A1 T: (204) 989-2434 F: (204) 989-2433 Drumlummon – A Golden Future for a Historic Mine

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