Rubicon confirms high-grade at McFinley

Vancouver The remaining 16 holes from a newly completed 9,600 metre drill program by Rubicon Minerals (RMX-V) has confirmed the presence of several promising zones on the McFinley gold project in Ontario’s prolific Red Lake gold camp.

"Although we acquired McFinley less than a year ago," says company President, David Adamson, "we now know that gold mineralization on this large property is developed in a number of previously unexplored areas within a setting similar to that of the major mines in the camp."

The junior punched a total of 44 holes into the project during its first round of drilling, outlining a gold-bearing zone over 365 metres along strike down to depths of 130 metres at the MAC-1 target. Highlights include:

• Hole 16 20.9 grams gold per tonne over 0.35 metre from 20.4 metres downhole and 46 grams gold over 0.99 metre from 213.2 metres downhole;
• Hole 41 11.75 grams gold over 0.59 metre from 174.7 metres downhole;
• Hole 30A 66.1 grams gold over 0.29 metre from 93.7 metres downhole;
• Hole 34 38.2 grams gold over 0.4 metres from 70.8 metres downhole;
• Hole 36 13.15 grams gold over 0.5 metre from 78.5 metres downhole; and
• Hole 19 33.16 grams gold over 0.29 metre from 68.65 metre downhole.

Moving 500 metres southwest, 4-holes into the MAC-2 target cut narrow zones of high-grade material ranging up to 33.33 grams gold over 0.37 metre from 278.9 metre downhole in hole 21. Historical working at the MAC-2 zone hosts an inferred mineral resource of some 330,000 tonnes grading 6.72 grams gold, from 50-to-400 ft below surface.

Some 600 metres east of the MAC-2 zone, hole 33 was drilled 140 metres southwest of hole 25 (65.8 grams gold over 0.67 metre) and returned up to 10.9 grams gold over 0.5 metre.

A km northeast of the MAC-1 target, significant mineralization was cut in one of three holes drilled in the MAC-4 zone. Hole 37 returned 17.3 grams gold over 0.55 metre from 176 metres downhole. Mineralization is hosted in banded iron carbonate veins similar in nature to Goldcorp‘s (G-T) Red Lake mine.

Between the MAC-1 and MAC-4 targets, hole 42 cut 12.25 grams gold over 0.8 metre at 96 metres downhole, plus 10.15 grams gold over 0.5 metres at 218.3 metres followed by 7.59 grams gold over 0.5 metre. Mineralization is hosted in altered basalt.

"Signifcantly, "adds Adamson, " we are already beginning to demonstrate continuity of gold bearing structures with considerable strike and depth potential."

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

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%.