Rubicon adds base metal and gold projects to portfolio

Vancouver-based Rubicon Minerals (RMX-V) has added a base-metal prospect in Alaska and a gold property in Ontario to its North American land package.

In southwestern Alaska, the company has negotiated a 99-year lease on a zinc-copper-lead-silver-gold prospect named the Palmer property, which covers 340 claims in the Alexander terrane 35 miles northwest of the town of Haines.

On the property, at least 25 base-metal and/or barite showings occur over a 5.7-mile strike length within a northwest-to-southeast-trending mineralized belt of pyritic-sericitic schists and siliceous rocks. Past work includes over 15,000 ft. of drilling in 21 holes.

Under the agreement with privately held Alyu Mining and Haines Mining Exploration, Rubicon must pay US$42,500 cash annually and issue 200,000 shares over four years. Alyu and Haines will retain a 2.5% net smelter return royalty, of which Rubicon may purchase up to 1.5% in stages over ten years for US$6 million. Rubicon must also make the annual US$34,000 land-holding payments.

In northwestern Ontario’s Red Lake camp, Rubicon has optioned the McCuaig gold property from Golden Tag Resources (GOG-V).

The property, situated within the Cochenour-Gull Rock deformation zone, consists of 10 claim units that are contiguous to the south with the former MacKenzie-Red-Lake gold mine.

Rubicon may earn a 50% interest in McCuaig by paying $25,000 cash and spending $450,000 on exploration over three years, including $50,000 before next August and a total of $100,000 before Dec. 15, 1998.

The vendors will retain a 2% net smelter return royalty, of which 1% can be purchased for $200,000. Advance royalties of $12,000 per year are due to the vendors beginning August 11, 2003.

Operator Rubicon says it is now compiling existing data at McCuaig and plans to carry out preliminary diamond drilling this winter.

In December, Rubicon began raising between $1 million and $1.5 million via the private placement of units at $1.15 each. A unit consists of one flow-through share and one-half of a warrant, with one warrant being exercisable for one non-flow-through share at $1.30 each, exercisable for 12 months from closing.

Rubicon says the proceeds will be applied towards its 1998 exploration programs.