Rubicon still hopeful at Lewis Lake

Vancouver — Despite disappointing results from a 13-hole drilling phase, Rubicon Minerals (RMX-T) intends to persevere at its Lewis Lake base metal property in north-central Newfoundland

The 2,534-metre program tested geophysical electromagnetic conductors, as well as induced-polarization targets. Situated 10 km east of the Point Leamington deposit (1.6 million tons grading 7.34% zinc and 0.43% copper, plus 0.065 oz. gold and 1.59 oz. silver per ton), Lewis Lake is underlain by similar Ordovician-aged felsic volcanic rocks. Interpretation of an airborne geophysical survey by joint-venture partner Billiton Exploration Canada identified 15 targets, and eight of these were confirmed by ground-level surveys.

Hole 13, in the recent first phase of drilling, encountered an extensive sequence of highly altered sulphide-bearing quartz porphyritic felsic rocks. The alteration, which covers the entire 422-metre length of the hole, consists of strong quartz-epidote-pyrite and pyrrhotite plus or minus sericite and biotite. Locally, chalcopyrite and sphalerite were also identified. A 49.8-metre section of the hole assayed 1,250 parts per million (0.01%) copper, starting from a down-hole depth of 13.2 metres.

Rubicon believes the hole is indicative of a large-scale sulphide-bearing alteration system that is open in all directions. An additional 30 line km of geophysical surveys will be carried out, followed by a 2-to-3-hole diamond drill program.

Holes 1 through 12 of the recent drilling intersected locally massive pyrite, pyrrhotite, chert beds, jasper units and previously unknown felsic stratigraphy. Using down-hole geophysics, Rubicon identified two strong off-hole conductors in holes 3 and 10. These two conductors, as well as two airborne conductors, will require follow-up work.

The Billiton subsidiary purchased a 3.4% equity stake in Rubicon in 1999, and, at the same time, optioned both the Point Leamington and Lewis Lake projects. The major can earn a half-interest in each property, with an additional 10% available by paying all costs to the completion of a feasibility study. An additional 10% (for a total of 70%) can be earned by financing the project to commercial production.