Rubicon starts drill program at Palmer

Junior Rubicon Minerals (RMX-V) has begun a 5-to-8-hole, 4,000-ft. drill program at the Palmer base metal project in southeastern Alaska.

The road-accessible project, 35 miles northwest of the port of Haines, is host to numerous high-grade zinc-copper showings, which also carry gold and silver values.

In 1998, Rubicon and Atna Resources (ATN-T) completed a US$500,000 program of geological mapping, rock sampling and ground geophysics, as well as preliminary diamond drilling. Atna backed away from its option last October, and Rubicon has since focused its attention on three prospects: MHC, Little Jarvis and Cap.

The MHC target represents a newly interpreted source area for a high-grade, sub-angular sulphide boulder train. Rubicon reports that the average grade from 20 boulder samples was 19.3% zinc.

Little Jarvis contains massive sulphide mineralization associated with a felsic-mafic rock contact. Previous chip sample results returned 13% zinc and 7% copper, as well as 7 oz. silver and 0.02 oz. gold per ton, over 15 ft.

The Cap target is a thick and extensive barite-silver system that displays intense sericite-pyrite alteration. Previous drilling in 1998 returned a 300-ft. barite-rich intersection that assayed 1 oz. silver per ton.

In related news, Rubicon has agreed to raise up to $900,000 by way of a private placement. The conventional portion of the financing will consist of 1 million units priced at 50 cents each. A unit will consist of one share and one share purchase warrant. Each warrant entitles the owner to buy an additional share for 65 cents for up to one year from the closing date. Most of the $500,000 in proceeds will be applied to Palmer.

The flow-through portion of the financing will consist of selling, at most, 571,428 flow-through units priced at 70 cents per unit, equivalent to gross proceeds of $400,000. Each flow through unit will consist of one share and one non-flow through share purchase warrant, entitling the owner to buy one share for 90 cents for up to a year. The proceeds will fund two drilling programs at the company’s Red Lakegold properties, and one at a base metal prospect south of Timmins.