Alaska massive sulphide claims option - $US 400,000 program planned
Atna options Alaskan base metal project from Rubicon
Rubicon Minerals Corp
RMX
Shares issued 10177630
1998-06-08 close $0.6
Thursday Jun 11 1998
Also Atna Resources Ltd (ATN)
Mr. J. Garfield MacVeigh and Mr. Peter DeLancey report
Atna Resources and Rubicon Minerals have executed a letter
agreement whereby Atna has an option to earn a 50 per cent
interest in Rubicon's 99-year mining lease agreement on the 340
claim Palmer property.
In order to exercise its option, Atna must spend a total of
$2,000,000 (U.S.) on the property on or before Oct. 10, 2001 and
has a firm commitment to spend $400,000 (U.S.) on or before
Oct. 10, 1998. During the option period, Rubicon will be
responsible for maintaining the underlying lease agreement by
paying applicable advanced royalty payments, BLM claim fees
and by issuing shares of Rubicon to the underlying owners. Atna
will be operator and has appointed Rubicon to manage project
exploration for the years one and two of the option. Once Atna
has earned its 50 per cent interest, a joint venture will be formed
(Atna 50 per cent/Rubicon 50 per cent) with subsequent project
expenditures shared according to each party's respective interest.
Atna will have the right to be operator during the joint venture.
The Palmer project is in elephant country within rocks that are the
same age as the Greens Creek (greater than 20 mt) and Windy
Craggy greater than 250 mt) deposits. The project is remarkably
accessible and close to tidewater. The Haines highway passes
within two miles and active logging roads access the eastern part
of the property.
Both Atna and Rubicon are recognized in the mining industry for
their skills in massive sulphide exploration. The respective
presidents, Peter DeLancey and Garfield MacVeigh, agree that this
is the most significant under-explored property they have seen in
their many years exploring for and discovering metal deposits.
The companies believe that the documented showings on the
property attest to the presence of a large, extensive mineralizing
system that has the potential to host multiple, large, rich deposits.
Over 25 high-grade base metal and/or barite showings occur on
the property over a trend of 5.7 miles. Significant results from
past work on the property are as follows:
Zn Cu Au Ag
Showing Interval % % oz/t oz/t
Little 15 ft.
Jarvis* chip 13.0 7.0 0.02 7.0
Main zone* 20 ft.
chip 8.0 1.4 0.03 9.5
MHC** Boulder 6
ft. chip 33.0 2.5 nil 1.6
MHC** 26 boul-
ders
(avg.) 19.3 1.0 -0.01 1.1
HG** 2.5 ft.
chip 9.5 0.4 0.03 1.9
Boundary* Grab -0.1 6.5 0.06 0.4
Cap*** 43 ft.
channel 0.3 -0.1 0.01 8.0
* Kennecott
** U.S. Bureau of Mines
*** Newmont
Despite the presence of high-grade showings and spectacular
mineralized boulders, previous exploration on the project has been
limited and sporadic. A $400,000 (U.S.) budgeted program
including mapping, sampling, ground geophysics and diamond
drilling will commence in July.
(c) Copyright 1998 Canjex Publishing Ltd.
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