Redstar eyes Red Lake, Wheaton targets Axelgold

Vancouver — With the drill rig already turning on its key property holdings in the heart of the prolific Red Lake district of Ontario, Rubicon Minerals (RMX-V) is hoping to advance some of its other promising projects by dealing them to experienced management teams.

The junior inked a deal with Redstar Resources (RST-V) over several properties lying on the western end of the Red Lake gold camp.

Redstar can earn a 51% interest in the 226 claim units by making cash payments of $135,000, issuing 500,000 shares and spending $2.75 million on exploration over 4 years. The company can then boost its stake to 60% by spending $10 million over 8 years and earn an additional 10% interest by producing a bankable feasibility study and arranging mine financing.

Located 15 and 30 km west of Goldcorp’s (G-T) Red Lake mine, the properties are considered prospective for hosting high-grade gold mineralization.

“We are pleased that we have a capable partner to carry out exploration work on these very prospective properties,” says Rubicon’s President. David Adamson, “while we continue to focus our efforts on our core assets in the heart of the Red Lake camp.”

In British Columbia, Rubicon dealt Wheaton River Minerals (WRM-T) the right to earn up to a 50% stake in its wholly-owned Axelgold porphyry property in the north-central part of the province.

Under terms of the agreement, Wheaton Minerals can earn a 20% interest by funding a $350,000 drill program before Nov. 30 of this year. The company can then earn an additional 30% by spending $650,000 by Nov. 30, 2003. Rubicon remains the operator of the project.

Located near Smithers, the Axelgold property hosts several gold geochemical anomalies associated with a large pyritic syenite intrusion covering a strike length of over 600 metres. The project is considered prospective for a bulk mineable gold or copper-gold porphyry deposits.

Rubicon recently closed a $3 million financing and with its joint venture partners is currently in the midst of drill testing four of its Red Lake prospects. The company is the Red Lake’s region largest landowner, with some 300 sq. km of ground. A large portion is under option to AngloGold (AU-N).