Rubicon hits high-grade at McFinley

Vancouver — Rubicon Minerals (RMX-V) has cut several intervals of high-grade gold at the McFinley project in Ontario’s Red Lake camp.

So far, 26 holes (or 8,465 metres) have targeted unexplored parts of the property. Rubicon has received assay results for 14 of the holes; as a result, three new targets, dubbed Mac-1, Mac-2 and Mac-3, have been identified.

“While we are at an early stage in exploring new parts of the property, it is clear we are dealing with a large, gold-bearing system,” says company president David Adamson. “Our exploration model is yielding highly positive results.”

The past-producing McFinley mine contains an inferred mineral resource of 303,006 tonnes grading 6.8 grams gold per tonne. Historical workings include a 130-metre vertical shaft with drifts on three levels that extend 122 metres below the surface.

Highlights from drilling at the Mac-1 zone, about 1 km north of the old McFinley workings, are as follows:

— Hole MF03-16 cut a number of narrow high-grade intervals starting at 20.4 metres down-hole. These include 0.35 metre averaging 20.9 grams gold; 0.5 metre averaging 9.53 grams gold, starting at 163.4 metres down-hole; 0.45 metre averaging 24.2 grams gold, starting at 191.10 metres down-hole; 1 metre averaging 45 grams gold, starting at 213.2 metres down-hole, and 0.5 metre averaging 17.65 grams gold starting at 322.25 metres down-hole.

— Hole 03-30A was collared 150 metres south of hole 03-16 and intersected high-grade intervals, including 0.3 metre grading 66.1 grams gold per tonne starting at a down-hole depth of 93.7 metres; 0.4 metre of 8.28 grams gold starting at 240 metres down-hole; and half a metre of 7.93 grams gold starting at 264 metres down-hole.

— Hole 03-19 was collared 200 metres farther south and intersected 0.3 metre of 33.16 grams gold starting at 68.85 metres down-hole.

The Mac-1 target hosts numerous lower-grade but significant gold intervals, and these point to the presence of a large gold system in the area. Mineralization is a found in quartz-carbonate veins hosted in altered biotite-bearing mafic volcanic rocks. The zone remains open in all directions.

In the Mac-2 area, just northwest of the old McFinley workings, three holes were collared 75 metres downdip of previous drilling. The holes all intersected an extensive sequence of silicified and biotite altered mafic volcanics. The following were high-grade intervals:

— Hole 03-21 intersected 0.71 metre averaging 34.2 grams gold starting at 138.25 metres down-hole, 0.36 metre of 33.33 grams gold starting at 279.24 metres down-hole, and 0.51 metre of 11.25 grams gold starting at 279.75 metres down-hole.

— Hole 03-23 cut 0.95 metre of 9.58 grams gold starting at 211.75 metres down-hole.

All three of the holes hosted numerous lower-grade intercepts ranging from 2.13 grams gold to 4.08 grams gold. Drill rigs are currently testing the ultramafic-mafic contact 122 metres to the north at a vertical depth of 335 metres.

Mac-3 zone

At the Mac-3 zone, about a half a kilometre southeast of the McFinley workings, three results from five holes have been received. The best of these was hole 03-25, which cut a 0.62-metre section averaging 17.75 grams gold starting at 53.55 metres down-hole and a 0.67-metre interval of 65.8 grams gold starting at 180.45 metres down-hole.

Numerous lower-grade intervals ranging between 2.07 and 5.13 grams gold were cut between these two higher-grade sections.

Gold in the Mac-3 area is hosted by altered and veined intrusive rocks and, to a lesser extent, mineralized ultramafics. Several holes tested other targets but returned only anomalous gold. Nonetheless, these targets exhibit strong alteration and warrant further drilling. The first phase of drilling was expected to have concluded by mid-April.

The junior picked up the McFinley 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, as well as make various advanced royalty payments to a maximum of US$1 million. Another US$675,000, plus a 2% net smelter return royalty (NSR), is payable if the project advances to production.

For the adjoining ground, Rubicon agreed to pay $325,000 and issue 500,000 shares, as well as reimburse the vendor’s legal costs to the tune of $175,000. The private company also receives $75,000 in yearly advanced royalty payments and retains a sliding-scale NSR ranging from 2% to 3%.

McCuaig

Meanwhile, at the McCuaig joint-venture project, 60-40 partners Rubicon and Golden Tag Resources (GOG-V) have drilled 10 holes spanning 1,600 metres.

Previous drilling at McCuaig identified gold mineralization at the 1900 zone. Hole 02-32 averaged 22.83 grams gold over 3.1 metres, whereas hole 02-27 returned 25.48 grams gold over 1.07 metres. Follow-up drilling in the area continued to intersect gold mineralization, which is apparently associated with faults that are related to a northeast-trending structure that crosscuts silicified ultramafic rocks. Highlights are as follows:

— Hole 03-42 cut 1.5 metres averaging 3.12 grams gold starting at 134.6 metres down-hole.

— Hole 03-45 cut 0.6 metre of 7.3 grams gold starting at 112.1 metres down-hole.

— Hole 03-46 cut 0.5 metre of 3.8 grams gold starting at 142.5 metres down-hole.

— Hole 03-48 cut 0.5 metre of 6.29 grams gold starting at 138.5 metres down-hole.

Several holes intersected broad, lower-grade gold zones, and anomalous gold was intersected in hole 03-50 within a silicified ultramafic unit, collared 240 metres west of the 1900 zone. Further exploration is warranted.

At the Rubicon-AngloGold project, drilling is ongoing and results will be reported once all assays have been received.