Rubicon hits bonanza grades at McFinley

Vancouver A 14-hole drill program by Rubicon Minerals (RMX-V) has returned encouraging values from the McFinley Mine gold project in the prolific Red Lake camp of northwestern Ontario.

“We are pleased with these initial results and are encouraged to have intersected high-grade gold in this preliminary program," says company President, David Adamson.

The 6,263-foot program tested the mineralized zone, which hosts an inferred mineral resource of 334,000 tons grading 0.2-oz gold per ton, from 50-to-400 ft below surface. Hole 2 was collared some 750 ft east of the historical shaft and cut four narrow mineralized zones ranging up to 1.85 oz gold over 2 ft. Moving 150 ft to the south, hole 14 hit two zones ranging up to 0.1 oz gold over 1.4 ft.

Holes 3,4,6 and 8 were all collared from the same site some 600-ft southwest of the shaft. All the holes cut gold mineralization with the best results coming in hole 3, 0.49 oz gold over 1.2 ft.

The remaining eight holes were all drilled in a cluster about 300 ft north of the shaft. Highlights include:

• Hole 1 0.26 oz gold over 1.3 ft;
• Hole 5 1.36 oz gold over 2.1 ft and 21.26 oz gold over 1.2 ft;
• Hole 7 0.1 oz gold over 1.5 ft;
• Hole 10 0.11 oz gold over 2 ft;
• Hole 11 0.13 oz gold over 1 ft;
• Hole 12 0.11 oz gold over 0.9 ft;
• Hole 13 0.22 oz gold over 2 ft.

"We believe that the widespread sulphide mineralization and newly identified high-grade structural gold zones compare favourably with exploration zones in the nearby Red Lake mine, operated by Goldcorp," adds Adamson. "Considering that active deposits in the gold camp are being mined to depths of over 6500 feet, we believe there is very high potential for additional discoveries at McFinley.”

Rubicon is planning to launch a follow-up drill program shortly.

The junior picked up the project last year by inking a deal with two private companies. For the McFinley property, Rubicon agreed to pay $800,000, issue 260,000 shares and spend US$1.3 million on exploration over 4.5 years and make various advanced royalty payments to a maximum of US$1 million to earn 100% interest. Another payment of US$675,000 and a 2% net smelter return royalty is payable if the project advances to production.

On the adjoining ground, Rubicon agreed to pay $325,000 and issue 500,000 shares, 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%.