Rubicon, Billiton cut massive sulphides

Vancouver-based junior Rubicon Minerals (RMX-V) and partner Billiton Exploration Canada have intersected more massive sulphide mineralization during a 9-hole, 2,500-metre drilling program at their Point Leamington base metal property in north-central Newfoundland.

Hole 72, drilled 275 metres from the nearest massive sulphide intersection on the property, cut 8.1 metres (near true thickness) of massive sulphides grading 0.66% copper and 0.44% zinc, plus 1.08 grams gold per tonne.

This new discovery, which lies on the same horizon as the Point Leamington deposit, was discovered by testing a strong off-hole conductor detected in two holes on sections 150 metres apart.

As well, three new holes and six extensions to existing holes were drilled. The partners say it is now evident that four horizons in the footwall stratigraphy have potential to host massive sulphide deposits, and that more drilling is planned.

The Point Leamington deposit contains a resource of 13.2 million tonnes grading 2.25% zinc, 0.48% copper, 0.89 gram gold and 20.57 grams silver. The deposit was discovered by Noranda in 1971 and bought by Rubicon in 1998.

Billiton Exploration Canada, a wholly owned subsidiary of British giant Billiton, can earn a 50% interest in both the Point Leamington and Lewis Lake projects by spending $800,000 on exploration. Billiton can acquire an additional 10% of each project by providing funding up to the feasibility stage, and a further 10% by financing Rubicon’s share of the project to commercial production.

Meanwhile, in northwestern Ontario, Rubicon is launching a 750-metre drill program at the Peterson gold project, in Balmer Twp., near Red Lake.

The property was drill-tested with mixed results in the 1950s and 1960s. The previous operators cut narrow high-grade mineralization grading up to 106.6 grams gold over 0.12 metre at the McDougal showing but failed to define continuity between holes.

The gold is hosted in iron formations, mafic volcanics and quartz sulphide zones comprising arsenopyrite, pyrrhotite, chalcopyrite and sphalerite. According to Rubicon, the previous drilling tested only the shallow levels of the gold-bearing stratigraphy. A few of the deeper holes hit a promising sericite-talc schist, which may prove to be a structural or stratigraphical control for mineralization.

The junior plans to drill two holes to test the extensions of the high-grade mineralization and the schist target.

Rubicon is earning a 60% interest in the project from privately held Peterson Red Lake Mines.

At another project in the Red Lake district, McCuaig, Rubicon has extended surface mineralization. In the southeastern portion of the property, the junior discovered a narrow discontinuous vein over a 5-metre strike length that returned up to 231 grams gold in a grab sample. In the northwest, exploration has identified a highly altered ultramafic body that returned elevated arsenic, antimony, mercury and gold values.

Rubicon has completed its 2-year commitment to Golden Tag Resources (GOG-V) and plans to earn its 50% operating interest in the property this year.