John,
Finally they locked up McFinley. Stock has been doing well lately. A lot of followers on Stockhouse.
RUBICON ACQUIRES McFINLEY MINE PROPERTY IN THE RED LAKE GOLD CAMP
Bonanza-grade intercepts include 99.20 oz/ton gold over 2.0 ft, 5.84 oz/ton gold over 6.1 ft
David W. Adamson, President and CEO of Rubicon Minerals Corporation (RMX.TSX Venture) is very pleased to announce that the Company has entered into an option agreement with Dominion Goldfields Corporation and 1519369 Ontario Inc. to acquire a 100% interest in 16 patented mining claims comprising the McFinley Mine property, located in the heart of the prolific Red Lake, Ontario gold camp. This new McFinley Mine property acquisition is in addition to the previously announced acquisition by Rubicon of 25 adjacent licenses of occupation and one mining lease (see Jan. 31/02 news release). The two properties combined constitute the historical McFinley property.
The new McFinley Mine property contains an Inferred Mineral Resource of 334,007 in situ tons at an average grade of 0.20 oz/ton gold to a depth of 400 feet (under the standards of National Instrument 43-101 this published resource would be classified by Glenn Hogg, P.Eng. and QP as an Inferred Mineral Resource). This resource does not include a published high-grade zone of 19,118 in situ tons grading 2.75 oz/ton gold (uncut) which may not be compliant with NI 43-101. All known gold zones on the property are under-explored and open for expansion.
Key features of the McFinley Mine Property include:
Published uncut drill intersections* on the property include:
5.84
oz/ton gold over
6.1 feet
5.75
oz/ton gold over
5.0 feet
5.10
oz/ton gold over
5.0 feet
1.44
oz/ton gold over
14.1 feet
3.56
oz/ton gold over
4.9 feet
7.20
oz/ton gold over
3.7 feet
6.41
oz/ton gold over
2.0 feet
29.00
oz/ton gold over
2.6 feet
99.20
oz/ton gold over
2.0 feet
* Note: Results summarized herein have been derived from published reports from previous operators and their consultants.
A high-grade zone open for follow up with a published resource of 19,118 in situ tons grading 2.75 oz/ton gold.
The underground workings on the new McFinley Mine property are accessed via a 425-foot vertical shaft with drifts developed on three levels to a depth of only 400 feet below surface. Exploration potential below this level was the subject of limited exploration in the 1980’s. For reference, Goldcorp’s new High Grade Zone, (3.76 million ounces of gold with an average grade of 2.02 oz/ton gold) occurs approximately 5,500 feet below surface, and extends to depths of 6,800 feet.
Significant potential exists for high-grade gold of classic ‘Red Lake type’, that is, gold developed in association with structures at the contacts of ultramafic units, all of which have been documented on the McFinley Mine property.
The McFinley Mine property, combined with recently acquired adjacent claims (see attached Figure 1), contain four-kilometres of strike length of high potential ultramafic rocks which dip westward beneath both properties. The ultramafics are folded and are cut by structures and have been the subject of little or no previous exploration. The Mine property, with its shallow resource and high grade potential, provides the ideal platform from which to explore for additional resources on adjacent claims.
The McFinley Mine property has remained idle and unexplored for the last 14 years, a period of explosive growth in the Red Lake camp led by Goldcorp’s discovery in 1995 of new, high-grade reserves at its Red Lake Mine.
The property is immediately adjacent to, and on strike with mineralized trends, which include Goldcorp’s recently drilled Abino Zone (see Figure 1). In December 2001, Goldcorp reported drill results which included: 18.11 oz/ton gold over 2.5 ft and 2.92 oz/ton gold over 4.9 ft (Goldcorp news release, December 12, 2001).
David Adamson stated: “With this acquisition, Rubicon is now an even greater force in the Red Lake gold camp. Our combined McFinley land holdings covering 1,247 acres constitute prime exploration ground with known high-grade gold intersections and high potential for new discoveries in the heart of the world’s premier gold camp. In addition to McFinley, Rubicon has a 60% interest in the McCuaig project where high-grade gold over mineable widths was recently discovered. Also, with partner AngloGold (Canada) Exploration Ltd., Rubicon controls the largest land holdings in the district from which new gold discoveries were recently announced.”
With approximately $3.75 million in its treasury, Rubicon has funding in place, following further data compilation and field work, to carry out an aggressive diamond drilling program at the new McFinley Property later this year.
Agreement Terms
To acquire a 100% interest in the McFinley Mine Property, Rubicon has agreed to the following option terms, subject to regulatory approval:
1) At Closing, the issuance of 500,000 shares of Rubicon to Dominion Goldfields Corporation (“DGC”), a private
federally incorporated company.
2) Payment at Closing, of C$325,000 to DGC.
3) Commencing 12 months after Closing, making annual advance royalty payments of C$75,000, capped at an
aggregate of C$1.5 million.
4) In the event that, subsequent to a bankable feasibility study, a positive production decision is made on the property
DGC would receive a one-time advance royalty payment of C$1,000,000.
5) Rubicon shall reimburse C$100,000 to DGC and a further C$75,000 within 12 months of Closing to cover incurred
DGC legal costs.
6) DGC is granted a sliding rate net smelter return royalty as follows: <US$400/oz gold – 2%; $US400-$US500/oz
gold – 2.5%; >US$500 gold - 3%. Rubicon can purchase a 0.5% NSR at any time for C$1,000,000 and retains a
right of first refusal on the remaining royalty.
Rubicon Minerals Corporation is a well-funded junior exploration company with over 250 square kilometres of land holdings in the prolific Red Lake gold camp of Ontario. The camp hosts two high-grade, world class gold mines including Goldcorp’s Red Lake Mine which has reserves of 3.8 million ounces of gold with an average grade of 2.05 ounces of gold per ton in its High Grade Zone. Combined, the Campbell-Red Lake ore bodies contain 23.6 million tons at an average grade of 0.65 oz/ton Au (past production and reserves). |
