Rubicon, Anglo trade interests in Red Lake

Junior Rubicon Minerals (RMX-T) and South African mining house AngloGold (AU-N), associates in the Red Lake camp of northwestern Ontario for the last three years, have restructured their shared property interests.

The deal gives Rubicon control of most of the land held under the Rubicon-AngloGold joint venture, and AngloGold control of the Rivard property at the west end of the belt.

AngloGold, which had vested a 60% interest in the companies’ Red Lake Joint Venture, trades that interest for a 100% interest in Rivard, plus some adjacent properties in the western part of the camp. Rubicon takes a 100% interest in the remaining properties covered by the old joint venture agreement, mainly in the eastern half of the Red Lake area.

The properties passing to Rubicon include the Dorion-McCuaig Corridor (“DMC”) property, covering an extension of the Red Lake deformation zones northwest of the Campbell and Red Lake mines; and blocks in the East Bay, Slate Bay, and Sidace Lake areas.

AngloGold keeps a sliding-scale royalty on the former Joint Venture properties, which starts at a 1.75% net smelter return but rises to 2% above US$450 per oz. Some claims in the northeast part of the Red Lake camp are subject to a 2% net smelter return that increases to 2.5% above the US$450-per-oz. threshold. Rubicon retains a 1.75% net smelter return in Rivard.