Yindarlgooda Project
The Yindarlgooda Project comprises 950 km² of tenements centred some 55 kilometres east of Kalgoorlie.
The project area is located in a lower sequence of mafic to ultramafic lavas and volcaniclastic units, overlain by a sequence of felsic volcanics, sedimentary units and banded iron formations in a domal structure informally named the Bulong Anticline or the Yindarlgooda Dome. The area hosts a number of gold occurrences, including the Kanowna Belle, Daisy Milano, Salt Creek, Randalls and Karonie gold deposits and the Bulong nickel depositsand is located to the east of the highly productive Kalgoorlie-Kambalda-St Ives trend.
The project tenements contain known gold mineralisation at Queen Lapage, QE1 and at Taurus. Approximately 35,000 tonnes at 9.3g/t gold was mined by Croesus Mining NL from the Queen Lapage open pit and a significant low grade gold mineralised system has been defined at Taurus, where gold is associated with quartz veins and reefs within a felsic volcanic sequence.
The felsic rocks within the project area have long been considered prospective for the discovery of VMS deposits, yet little work has been conducted on this style of mineralisation since the 1980s. Previous exploration focussed on restricted outcropping and gossanous areas of the felsic units, highlighted a significant pyrite body with low grade zinc and copper at Rocky Dam and other base-metal anomalies (e.g. Swamp Dam). Examples of better recorded drill intercepts include 18m @ 0.74% zinc and 0.20% copper and 10m @ 0.25% zinc.
Gold Exploration
Gold exploration has focused on the assessment of prospects proximal to the 400,000 ounce Salt Creek gold deposit discovered by Integra Mining Ltd adjacent to Rubicon's tenements, and on a number of other prospects throughout the leases. Rubicon has completed RAB/aircore and RC drill programs at the Salt Creek North, Red Dale North, Hickmans Find, Salt Creek East and the Tiger Lily prospects in the Salt Creek area and at the QE1, Queen Lapage, Taurus and Yalla Burra prospects.
At Salt Creek North, drill results include 28m @ 0.52g/t (incl. 3m @ 1.27g/t), 9m @ 0.72g/t (incl. 3m @ 1.80g/t and 16m @ 0.73 g/t gold (incl. 4m @ 1.90g/t). These results are open to the north.
At Tiger Lily, drilling along a major structure has defined a mineralised corridor over at least 400 metres strike under cover of a paleochannel, with better results of 1m @ 19.8g/t, 4m @ 1.11g/t, 4m @ 1.18g/t, 4m @ 1.07g/t and 8m @ 0.50g/t gold.
At QE1, significant gold mineralisation has been defined in an ore shoot coincident with a magnetic corridor and associated with the regionally important Randalls Fault. Better previous shallow drill intercepts of 6m @ 6.33g/t, 6m @ 3.24g/t, 4m @ 3.79g/t, 8m @ 2.48g/t and 8m @ 2.81g/t gold were supplemented by Rubicon intersections of 4m @ 4.44g/t, 8m @ 2.39g/t and 4m @ 5.15g/t gold. The mineralisation remains open to the northeast.
Base Metal Exploration
Rubicon's tenements cover a significant strike extent of the prospective volcanosedimentary sequence at the Rocky Dam and Reef Dam prospects. Much of this sequence is under cover of Lake Yindarlgooda. Rubicon has completed electromagnetic (EM) surveys over the southern continuation of the sequence from the Rocky Dam to the Reef Dam prospects under the lake utilising the high resolution Landtem Squid system, defining a number of discrete conductive anomalies. Only two RC holes have been drilled to date to test targets at Reef Dam due to access restrictions in Lake Yindarlgooda. Elevated zinc to 0.12% was intersected.
Rubicon has entered entered into four joint ventures over tenements at Yindarlgooda. All joint ventures are at an early stage and their status is as follows:
Peters Dam Joint Venture (Integra Mining Ltd earning 51 or 70% (at Rubicon's election))
The Peters Dam Joint Venture covers approximately 325 km² of Rubicon tenements at the southern end of the Yindarlgooda project adjacent to Integra's Salt Creek gold deposit. Under the terms of the agreement, Integra may spend $1.5m over three years to earn a 51% interest in the tenements. At Rubicon's election, Integra may then earn an additional 19% by the additional expenditure of $1.0m over a further two years. Integra must spend a minimum $250,000 on direct drilling costs within twelve months before withdrawal.
Integra is developing a significant gold mining operation focused around Salt Creek and the discovery of a commercial deposit by Integra on Rubicon's tenements would expose Rubicon to the potential for early mining without a major capital outlay. For this reason, Rubicon believes that the exploration of these tenements as part of Integra's near-mine exploration program is a better option than continuing sole exploration.
Integra has completed limited field mapping, rock chip sampling and an initial RAB drilling program on targets to the east of Salt Creek.
Rocky Dam Joint Venture (St Barbara Ltd earning 51% or 70% (at Rubicon's election))
The Rocky Dam Joint Venture covers approximately 300 km² of Rubicon tenements at the northern end of the Yindarlgooda project, including the Queen Lapage and QE1 gold deposits and the Rocky Dam base metal prospects. St Barbara may earn a 51% interest through expenditure of $2.5m over three years and at Rubicon's election, may then earn an additional 19% by the additional expenditure of $1.5m over an additional two years. St Barbara must spend a minimum $300,000 by December 2009 before withdrawal, including at least $150,000 on direct drilling costs.
Exploration work by St Barbara has been limited to spectral scanning of stored chip cuttings samples from available drill holes to define alteration minerals commonly associated with gold mineralisation. St Barbara plan to undertake a significant RAB/aircore drill program in late 2009.
Yalla Burra Joint Venture (Dominion Mining Ltd earning 70%)
The Yalla Burra Joint venture covers two exploration licences at the southern end of the project. Rubicon has entered into a joint venture agreement with Quadrio Resources Pty Ltd, a wholly owned subsidiary of Dominion Mining Limited (Dominion). Under the terms of the agreement, Dominion has the right to earn a 70% interest in the tenements by the expenditure of $600,000 over a four year period. Dominion must spend a minimum of $70,000 within 12 months of the commencement date before withdrawal.
Dominion has commenced a major geochemical sampling and auger drilling program over the tenements.
Mt McLeay Joint Venture (Bluestar Resources Ltd earning 51% to 70% (at Rubicon's election))
Rubicon entered into the Mt McLeay Joint Venture with private company Bluestar Resources Ltd covering Rubicon tenements to the northwest of the Rocky Dam tenements. Under the terms of the joint venture, Bluestar must spend $300,000 within 30 months to earn a 51% interest in the tenements. At Rubicon's election, Bluestar may earn an additional 19% by expenditure of an additional $500,000 over a further two years. Bluestar has fulfilled its initial obligation to spend $80,000, including $40,000 in direct drilling costs.
Bluestar has been active on the joint venture drilling 86 RAB and aircore holes for 3,512 metres, principally adjacent to old workings on the southern leases. A best result of 4m @ 4.05g/t gold has been recorded.
