Day 1- Session 3: Precious Metals Sector
Gold and Silver Production in North America
Objective Capital Global Mining Investment Conference 2010
Stationers' Hall, City of London
28-29 September 2010
Speaker:
Murray Nye - RX Exploration
4. Safe Harbour 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. 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. 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. 4
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6. High-grade gold and silver production from the Drumlummon Mine in Montana US (100% owned).
7. Mine opened in May 2010, forecasted production of 15,000 ounces gold equivalent to December 2010.
12. Current NI 43-101 resource of 70,703 ounces Au and 1,915,560 ounces Ag (September 2009).
13. NI 43-101 resource: 155,518 tonnes grading 15.6 grams per tonne Au, and 422 grams per tonne silver5
14. Location of Mine and Mill Marysville, Montana is located 25 miles North-West of Helena, Montana’s capital city. Contact Mill, Philipsburg, 114 miles by road southwest from Marysville Drumlummon Mine Helena USA Phillipsburg Mill 6 - Year round access by paved roads - Grid power at mine and mill - $15 million spent in past two years opening mine.
15. Marysville, MT Drumlummon Mine N Bald Butte Mine Patented Ground Staked Claims 1 km Drumlummon: Property Map The property consists of 48 patented mining claims and 132 staked claims totaling 2,680 acres 7
16. N Drumlummon: Known Veins EmpireVein Frankie Vein 400 Level Adit Castletown Vein North Star Vein Charly Vein D Block Xmas Vein DrumlummonVein St Louis Vein 9-hr Workings 500 metres 8
17. History of the Drumlummon Mine Price of gold in USD 1876:Drumlummon deposit discovered by Thomas Cruse. 1883 - 1910: Montana Co. puts mine into production with two shafts and 25 miles of drifts down to 1,600 foot level. Loses claim dispute in 1901 and floods mine. 1910: Montana Co. loses claim dispute. Closes mine. 1910 - 1929: St Louis Company achieves minor production. 1941 - 1951: Montana Rainbow Co.restarts production in 1946. Mill burns down. 2007: RX consolidates all land claims, initiates surface drilling, completes NI 43-101 report. Begins underground rehabilitation of old workings on 400 foot level. 2008:Charly Vein system discovered 2010: RX reopens the mine 26,453 oz Au 140,393 oz Ag 21,284 oz Au 138,773 oz Ag 35,685 oz Au 388,375 oz Ag 775,000 oz Au eq 9
24. Operating at 180 tons per day in August (accelerating to 250 tpd in September)
25. To date RX has processed 10,000 tons of ore from Drumlummon12
26. Mill Recoveries Mill recoveries on gravity circuit: 92% Mill recoveries on floatation circuit: 90% Dore bar refinery charge: 1% Float concentrate smelter charge: 8% *These numbers are before Net Smelter Return Royalty average at 2% 13
27. 14 Continuous Mining and Milling Schedule * Assumes all recovery, refinery and NSR charges
29. Exploration – Surface Drilling Drill Stations Company has planned 1,280 metres of drilling from two surface drill pads in Phase I of surface program 16
30. 17 Exploration – Underground Drilling (8,000 metres) Plan View 800 Level 3 Dimensional View N Charly vein 450’ level Christmas vein Drill Station #9 Proposed Drill Holes 800’ level Company has planned 60 drill holes from drill station #9 - not all shown here - for a total 8,000 metres (Phase 1 & 2)
31. Other Property Targets 18 N Bald Butte Mine Patented Ground Staked Claims 1 km Only 5% of property has been explored
32. Bald Butte – Surface Drilling 19 Phase I - 1,250 metres
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34. Phase I & II underground drilling to target Targeting Charly vein, X-mas vein, Drumlummon vein, and Castleton vein
35. Phase I surface drilling to target Targeting Empire vein, Drumlummon North vein and Frankie vein
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37. The RX Exploration Team Management CEO: Murray Nye – Co-founder,director, principal of Venbanc, Inc., an investment and merchant bank specializing in the structuring and financing of start-up companies; provides follow-up financial and management advisory assistance. CFO: Max Polinsky, B.Comm – Co-founder, director and principal of Venbanc, Inc. Director of Mining Operations: Mike Gunsinger – Mike was employed for 40 years by Patrick Harrison and Co., underground mining contractor, servicing major mining companies such as Inco and Noranda, and the US Military. Established his own underground contracting company and has been active in Utah and Montana. Consulting Mine Geologist:Ben Porterfield – Ben leads a team of geologists at the Drumlummon mine. He was formerly a geologist for Kennecott, focused on their Terra gold project in Alaska. Board of Directors John O’Donnell (B.A. Econ, L.L.B.) Chairman Murray Nye Max Polinsky Bill Fisher (P.Geo.) Former Chairman, Aurelian Resources and VP Exploration, Boliden Ltd. John Ryan (CGA) President, Spruce Ridge Resources Edward Ellwood (MBA) Management Consultant Paul Teodorovici Property Management Consultant 22
38. Share Capital RX Exploration was recently listed on the TSX Venture Exchange and began trading on August 4th, 2010. 1 As of September 14th, 2010 23
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40. Production of 15,000 ounces gold equivalent in 2010, 50,000 ounces gold equivalent in 2011
41. High grade gold and silver with average grade 14 grams per ton gold equivalent
