Placer eyes promise of Nfld.

A recently inked deal between Rubicon Minerals (RMX-V) and Placer Dome (PDG-T) allows the major to earn up to a 70% interest in the former’s Golden Promise gold project in north-central Nfld.

To earn an initial 55% interest, Placer must spend $5 million over 4 years, including $1.5 million by the end of 2004, with at least $700,000 spent on exploration by the end of February of that year. Placer has said it plans to have drills turning on the property before the end of 2003.

Once Placer has earned its 55%, it can add another 15% equity interest by delivering a bankable feasibility study by the end of 2009. Otherwise the two will form a joint venture reflecting their existing ownership levels.

Rubicon will act as operator during Placer’s earn-in. The deal is subject to regulatory approval.

Previous diamond drilling by Rubicon at the source of some gold-bearing quartz boulders at Golden Promise uncovered a gold-bearing vein dubbed the Jaclyn zone. Highlights from 17 holes to test the zone include 17.7 grams gold per tonne over 2.3 metres, 16.57 grams over 2 metres and 14.9 grams over 2.25 metres.

The Jaclyn zone has been traced over 225 metres of strike, and has been tested to a depth of 50 metres. It remains open in all directions.

Further prospecting has since turned up more mineralized boulders, which Rubicon believes come from similar veins. The company figures the source of the angular boulders is less than 200 metres away.

So far, Rubicon has identified six visible gold-bearing float areas, including Jaclyn. The company also says that the presence of gold-in-till anomalies on the property suggest regional mineralization.