NORTHERN ONTARIO – Toronto-based AGNICO-EAGLE MINES has optioned the DMC gold project in the heart of the Red Lake camp from RUBICON MINERALS of Vancouver. The property lies within a newly recognized part of the Balmer sequence, which hosts all of the other major gold deposits in the camp.
Agnico will earn a 51% interest in the DMC project by spending $2.25 million on explorating the property over three years, with $500,000 to be spent in the first year. It will also make cash payments of $110,000 to Rubicon during the next three years. Thereafter, Agnico can earn an extra 1% for every million dollars it spends up to $14 million.
Maps of the DMC property are posted at www.RubiconMinerals.com in the company’s Oct. 11, 2005, presentation, which is available in the Investor Info section.