Vancouver Junior Rubicon Minerals (RMX-V) has mobilized a drill rig to its flagship McFinley Mine gold project in the prolific Red Lake camp of northwestern Ontario.
The planned 3,000 metre program will mark the first drilling on the property in over 12 years. The company aims on testing land-based prospects before moving onto the ice-based targets early next year.
Rubicon picked up the project earlier this 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%.
Theproject hosts an inferred mineral resource of 334,000 tonnes grading 6.22 grams gold per tonne. Historical workings include a 130 metre vertical shaft with drifts of three levels extending to 122 metre below surface. Rubicon believes there is good potential for a high-grade zone at depth.
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