Rubicon, AngloGold report hot holes at Slate Bay

VANCOUVER — A 1,600-metre drill program by Anglogold (AU-N) and Rubicon Minerals (RMX-V) has returned encouraging gold values from the Slate Bay target in Ontario’s Red Lake district.

The project is 11 km northwest of Goldcorp‘s (G-T) Red Lake mine. AngloGold and Rubicon are testing an area where chip sampling returned 3.44 grams gold per tonne over 21.85 metres, including 5.6 grams gold over 6.1 metres. Channel sampling returned 1.14 grams gold over 36.93 metres.

Holes 1 through 5 targeted a 100-metre strike length portion of the mineralization to vertical depths of 150-250 metres. The first hole hit 1.19 grams gold per tonne over 15.6 metres, whereas hole 3 returned 1.25 grams gold over 5.7 metres, including a higher-grade section running 7.65 grams gold over 0.34 metre. Hole 4 cut 2.56 grams gold over 2.3 metres.

Hole 6 was drilled 700 metres to the west-southwest and cut anomalous gold values associated with two shear zones.

Mineralization occurs in disseminated and veined pyrite with minor chalcopyrite associated with biotite and chlorite in sheeted quartz veins near a contact with a large intrusive body. An earlier geophysical survey outlined a 2-km-by-500-metre induced-polarization anomaly over the zone.

Additional drilling is planned for early next year.

AngloGold is earning a 60% interest in the project by spending US$3 million over five years. It will then be able to boost its stake to 70% by paying Rubicon US$250,000.