ASX debutant gets busy in WA, Qld Kate Hayco?k - Mining...

ASX debutant gets busy in WA, Qld

Kate Hayco?k - Mining News
Monday, 5 February 2007

AFTER closing its oversubscribed $10 million initial public offering three weeks early, gold and base metals explorer Rubicon Resources listed on the Australian Stock Exchange on Friday and got down to business, announcing an initial two-year $7 million exploration program for its eight newly acquired projects.



Shares in the Western Australian company, a spin-off of Heron Resources, opened 3.5c (17.5%) above the issue price of 20c and reached an intraday high of 25c before steadying to 22c in late afternoon trading, giving it a market capitalisation of around $17 million. Shares in the company remained steady in morning trade today.

The company's two-year exploration program will be across tenements in WA and Queensland, after Rubicon acquired the rights to eight gold and base metals projects from parent company Heron.

The two main projects for Rubicon in this deal will be the Yindarlgooda and Desdemona projects in the Eastern Goldfields.

Yindarlgooda, 55km east of Kalgoorlie, "is a key area of initial focus and drilling with its drill-ready targets on predominantly granted leases", Rubicon managing director Peter Eaton said. The company has budgeted $2.4 million for exploration at the project, which is prospective for gold and base metal mineralisation including copper and zinc.

"Soil sampling programs were completed in January over restricted areas at Yindarlgooda and Desdemona projects … while two significant exploration programs, including 2000m of RC drilling, will commence in February in Yindarlgooda," Eaton said.

Rubicon has also contracted Outer Rim Exploration Services to conduct initial electromagnetic surveys at the project.

The other areas acquired from Heron include copper prospects at Warburton, gold at Erlistoun, Bencubbin and Boddington South, all in WA, as well as copper-lead-zinc plus iron-oxide-copper-gold at Canobie in Queensland.

Rubicon has acquired 100% of the rights to these projects. However, within the Yindarlgooda, Desdemona and Erlistoun projects, Heron either retains nickel exploration and mining rights while Rubicon holds the tenements, or Heron retains the tenement and Rubicon has all non-nickel exploration and mining rights.

On the board is Eaton, a geologist who most recently was Aditya Birla Minerals general manager of geology and business development and has held senior management positions at WMC. Joining him as non-executive chairman is John Shipp, who was recently president of Barrick Gold's Australia Africa business unit, and was also general manager of the KCGM Superpit in Kalgoorlie and the Boddington joint venture gold mine.

Ian Buchhorn, a mineral economist and geologist, is non-executive director. He is also managing director of Heron and sits on the board of Polaris Metals. Sam Middlemas has been appointed chief financial officer and company secretary and Dr Kevin Cassidy is exploration manager.