Vancouver — A 14-hole drill program by
The 6,263-ft. program tested the mineralized zone, which hosts an inferred mineral resource of 334,000 tons grading 0.2 oz. gold per ton, from 50 to 400 ft. below surface. Hole 2, collared some 750 ft. east of the historical shaft, cut four narrow zones ranging up to 1.85 oz. gold over 2 ft. Moving 150 ft. to the south, hole 14 hit two zones ranging up to 0.1 oz gold over 1.4 ft.
Holes 3, 4, 6 and 8 were all collared from the same site, some 600 ft. southwest of the shaft. All the holes cut gold mineralization, with the best result occurring in hole 3: 0.49 oz. over 1.2 ft.
The remaining eight holes were all drilled in a cluster 300 ft. north of the shaft.
Gold highlights include:
q Hole 1 — 0.26 oz. over 1.3 ft.
q Hole 5 — 1.36 oz. over 2.1 ft. and 21.26 oz. over 1.2 ft.
q Hole 7 — 0.1 oz. over 1.5 ft.
q Hole 10 — 0.11 oz. over 2 ft.
q Hole 11 — 0.13 oz. over 1 ft.
q Hole 12 — 0.11 oz. over 0.9 ft.
q Hole 13 — 0.22 oz. over 2 ft.
“The widespread sulphide mineralization and newly identified high-grade structural gold zones compare favourably with exploration zones in the nearby Red Lake mine [operated by Goldcorp],” says Rubicon President David Adamson. “Considering that active deposits in the gold camp are being mined to depths of more than 6,500 ft., we believe there is high potential for additional discoveries at McFinley.”
The junior picked up the project last 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, as well as make various advanced royalty payments to a maximum of US$1 million. Another US$675,000 plus a 2% net smelter return royalty (NSR) are payable if the project advances to production.
For 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-scale NSR ranging from 2% to 3%.
Rubicon plans to begin follow-up drilling shortly.
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