vale enters funding stage of warburton

VALE JOINT VENTURE MAJOR REVERSE CIRCULATION DRILL PROGRAM TO COMMENCE

• Companhia Vale do Rio Doce (Vale) has entered into the next stage of the Warburton Joint Venture Agreement, whereby it may earn a 51% interest in the project through funding expenditure of $3.0 million over three years
• The 2009 exploration work program has commenced and will include an initial detailed aeromagnetic survey and approximately 3,000 metres of reverse circulation drilling on prospects defined in 2008
• Rubicon will continue to manage the exploration program
Rubicon Resources Limited (Rubicon) is pleased to announce that its major shareholder and exploration partner Vale Australia EA Pty Limited, a wholly owned subsidiary of Companhia Vale do Rio Doce (Vale), has agreed to fund the next stage of exploration at Rubicon’s Warburton project. Following the completion of the Evaluation stage of exploration subject to the Evaluation and Farm In Agreement previously announced on 4 February 2008, Vale can now earn a 51% interest in the project tenements by spending $3 million over three years on further exploration and potential development. Vale may then proceed to a 70% interest in the project by sole funding exploration and development studies up to the commencement of a Bankable Feasibility Study (BFS). Vale may earn an additional 5% interest in the project by sole funding the BFS. Rubicon cannot be diluted below 25% equity before the completion of a BFS. An exploration program has been planned for the 2009 field season and is in progress. The results from the 2008 field program have focussed 2009 work programs on the upper part of the volcano-sedimentary sequence from the Keeweenaw to the Lilian targets (Figure 1); a strike extent of approximately 60 kilometres. While much of this target area is under cover of shallow recent sands, an approximate 12 kilometre outcropping zone within the Warburton Copper Target will be the focus of an initial reverse circulation (RC) drilling program. The Warburton Copper Target comprises extensive copper mineralisation defined from vacuum, percussion and diamond drilling from previous exploration, supplemented by Rubicon soil and auger sampling. Potential structural and stratigraphic controls on this mineralisation have also been identified from mapping and geophysical interpretation (Figure 2). Table 1 highlights previously reported diamond and percussion results from past exploration. In addition, previous shallow vacuum drilling has recorded significant copper anomalies with individual copper values of up to 4.1%. An initial program of up to 20 holes will test this mineralisation. The majority of holes will be 150-200 metres deep. With a consistent shallow southerly dip to the sequence, deep overlapping holes will ensure that both stratabound and fault-controlled targets are covered and that intercepts at depth when linked to surface anomalism will provide confidence on the potential scale of the mineralisation being tested. Heritage surveys for this program have commenced and the drilling will commence as soon as practicable. Given the extensive, but shallow, cover over the 60-kilometre prospective strike and the known anomalism in the limited outcropping areas, a 100-metre line spacing aeromagnetic survey is planned over the full extent of this zone from the Keeweenaw to the Lilian target (Figure 1). Heritage approval for this survey has already been received and the survey will commence imminently. Further drill testing, including deep diamond drilling will be planned based on the results of the initial drilling, the aeromagnetics and ongoing field investigations.