AngloGold, Rubicon cut gold at Rivard

Vancouver — A 33-hole drill program by partners AngloGold (AU-N) and Rubicon Minerals (RMX-V) has returned promising grades from the Rivard target in Ontario’s prolific Red Lake mining camp.

Out of the 36,280 ft. drilled during the program, some 10,226 ft. were collared at Rivard. The best result came from hole 7, which yielded 0.42 oz. gold per ton over 31 ft., including 11.9 oz gold over 1 ft. Moving 755 ft. to the south, hole 6 cut 0.67 oz. gold over 3.3 ft.

Gold mineralization is hosted in quartz veins cutting ultramafic and felsic rocks, and individual veins within the steeply dipping vein system have been traced on surface for over 100 ft. Lower-grade material lies within the 6,000-by-9,000-ft. iron carbonate-altered envelope.

“We are encouraged with these first-phase results from Rivard,” says Rubicon CEO David Adamson. “Clearly, Rivard has intercepts of potential economic significance.”

In the Slate Bay target area, AngloGold sunk three holes, which returned low-grade gold and copper mineralization from veined and brecciated intrusive and volcanic rocks.

At the DMC target area, six holes yielded broad low-grade mineralization with several higher-grade spikes. The best value came from hole 9, which returned 50.9 ft. grading 0.03 oz. gold, including 0.36 oz. gold over 1.8 ft., though no significant values were encountered in the four holes drilled at the B zone, the six drilled at the Adams Lake target, or the two drilled at the Humlin target.

AngloGold funded the drilling as part of an earlier agreement to earn a 60% interest in Rubicon’s RLJV properties by spending $5.4 million. The junior has also increased its interest in the adjoining Newman-Todd property to 22% (carried) from 9%.

Under the terms of the agreement, AngloGold can aquire a 60% interest by spending US$750,000 over four years and making cash payments to Redstar Gold (RGC-V), including at least $100,000 for exploration in the first year and $35,000 cash. After earning in, Rubicon would have a 22% interest, with Redstar retaining 18%.

“By signing this agreement with AngloGold, we have maintained a significant exposure to the Newman Todd property yet reduced our annual work commitments on the rest of the west Red Lake properties under joint venture with Rubicon,” says Redstar President Scott Weekes. “In addition, this agreement will see continuation of the development of the Newman Todd property with the first significant exploration program since the 1980s.”