Rubicon options three gold projects to International Lima

Vancouver Rubicon Minerals (RMX-V) has made three separate option agreements for three of its Newfoundland gold properties with International Lima Resources (LMG-V).

Lima has been granted an option to earn up to 60% interests in the Glenwood Break, Wing’s Point – Titan and Southern Golden Promise properties in return for spending a total of $5.25 million over four years and issuing 1.2 million shares Lima. International Lima must spend a total of $650,000 on exploration during the first year of the agreements.

“Two years ago, we began accumulating several district-size property packages in Newfoundland," said David Adamson, President and CEO of Rubicon. "We are pleased to welcome International Lima Resources as a partner to our Newfoundland projects. International Lima will be carrying out significant first year exploration programs on three promising project areas which, combined, represent about 15% of our Newfoundland land holdings.”

The Southern Golden Promise property consists of four separate claim blocks, that cover 920 claim. The claim blocks are situated about 15 to 100 km southwest of Rubicon’s Golden Promise Jaclyn zone gold discovery.

In order to earn a 60% interest in the Southern Golden Promise property, Lima must spend $1.75 million over four years and issue Rubicon 400,000 Lima shares. In the first year, Lima has committed $250,000 on the property.

The property covers 25 km of strike length on the Mustang Carlin trend which is currently being explored by Barrick Gold (ABX-T) under an option agreement with Altius Minerals (ALS-V).

Data from a government till sampling program that covered portions of the property indicated elevated gold values.

To earn a 60% interest in the Glenwood Break property, Lima must spend $2.0 million over four years and issue Rubicon 400,000 shares. During the first year of the agreement, Lima made a commitment to spend $350,000 on the property.

The Wings Point – Titan property is situated on the northern extension of the Barrick Mustang Carlin Trend target. Last year, Rubicon identified a new mineralized zone on the property through trenching. Chip samples from carbonate altered rocks returned values as high as 47.0 grams gold per tonne over 0.4 metre; 5.6 grams gold over 0.5 metre; and 8.2 grams gold over 1.0 metre. A grab sample from one of the trenches averaged 16.4 grams gold.

Grab samples by previous operators on the Wings Point property returned a high value of 0.51 oz. gold per ton (17.5 g/t) from a 1.6 ft. (0.5 metre) vein and shear zone. A Fort Knox drill hole intersected 0.29 oz. gold per ton (9.9 g/t) over 3.8 feet (1.15 metres).

To earn a 60% interest in the Wings Point – Titan property, Lima must spend $1.5 million over four years and issue to Rubicon 400,000 shares. This year Lima must spend $50,000 on the property.

In addition to its Newfoundland assets, Rubicon controls over 260 sq. km of ground in the Red Lake gold camp of Ontario. The company’s flagship asset is the McFinley gold project, which contains a published inferred mineral resource of 334,007 tons averaging 0.20 oz. gold per ton.