Rubicon drilling in Newfoundland

A 2,000-metre, 8-hole drill program on the Point Leamington massive sulphide project in north-central Newfoundland is following up on a base metal target recently discovered by Rubicon Minerals (RMX-V).

The Footwall horizon, discovered in hole 68 at a vertical depth of 300 metres, comprises massive sulphide clasts in the volcaniclastic unit with 10-15% pyrite. Averaging 65 metres wide in hole 68 and 50 metres wide in hole 69, the horizon contains upper and lower intervals of sphalerite mineralization grading 0.37% zinc over 8.15 metres and 0.41% zinc over 6 metres, respectively.

The Footwall horizon is just east of the previously discovered Point Leamington deposit and remains open at depth, as well as to the north.

States Rubicon President Garfield MacVeigh: “The Footwall horizon has high potential to host new massive sulphide deposits that could significantly transform the economic potential of the Point Leamington deposit.”

The expanded drill program is expected to be completed by March.

Discovered by Noranda (NOR-T) in 1971, the Point Leamington deposit has geological resources of 1.6 million tons grading 7.34% zinc and 0.43% copper, plus 0.065 oz. gold and 1.59 oz. silver per ton, in a global resource of 14.5 million tons grading 2.25% zinc, 0.48% copper, 0.26 oz. gold and 0.6 oz. silver.

Tested by 58 holes over a 500-metre strike length, the mineralization remains open to the north. The deposit dips 70 to the west and has a maximum thickness of 85 metres. Massive sulphides have been intersected to a depth of 360 metres below the surface.

The junior targeted the downdip extension of higher-grade zinc-gold mineralization during its first phase of drilling, which totalled 1,000 metres. Hole 69 cut 40.2 metres grading 2.32% zinc, 0.19% lead, 0.38% copper, 0.63 gram gold and 18.5 grams silver in the main massive sulphide horizon before hitting the Footwall horizon.

Rubicon optioned the ground from Noranda and minority-owner MFC Merchant Bank in late 1998. In return, the junior has agreed to issue 100,000 shares to Noranda over four years and provide MFC with a 0.5% net smelter return royalty (NSR) on any future production. Noranda also retains a 1.5% NSR and can buy any concentrate produced from the property.

In a separate deal signed earlier this year, London-based Billiton International has acquired the right to select and earn an interest in Point Leamington, as well as in Rubicon’s other base metal project in Newfoundland: Lewis Lake. Billiton can earn a half-interest in both properties by spending $800,000 on exploration. It can then earn an additional 20% of each project in exchange for advancing it to production.