Rubicon boosts Red Lake gold portfolio (July 01, 2002)

Vancouver — Junior Rubicon Minerals (RMX-V) has inked a deal with a two private companies to acquire the McFinley Mine gold project in the prolific Red Lake camp of northwestern Ontario.

The company must pay $325,000 and issue 500,000 shares on closing the deal, plus reimburse the vendor $175,000 in legal costs. The private company also receives $75,000 in yearly advanced royalty payments and retains a sliding net smelter royalty ranging from 2% to 3%.

The new property hosts an inferred mineral resource of 334,007 tons grading 0.2 oz gold per ton. Historical workings include a 425-ft. vertical shaft with drifts of three levels extending to 400 ft. below surface. Rubicon believes there is good potential for a high-grade zone at depth. Previously published uncut drill intercepts on the property range up to 99.2 oz gold over 2 ft.

“With this acquisition, Rubicon is now an even greater force in the Red Lake gold camp,” says the company’s president, David Adamson. “Our combined McFinley land holds constitute prime exploration ground with known high-grade intersections and high potential for new discoveries.”

Earlier this year, Rubicon agreed to pay $800,000 and issue 260,000 shares to earn a 100% interest in the adjoining McFinley project. It must also spend US$1.3 million on exploration over the next 4.5 years and make various advanced royalty payments to a maximum of US$1 million. Another payment of US$675,000 and a 2% net smelter return royalty is payable if the project advances to production.