Rubicon Minerals to option assets in Nevada to West Kirkland

Rubicon Minerals (TSE:RMX) (AMEX:RBY) said Monday that it has agreed to option a majority position in its mineral rights held in the Long Canyon Trend of northeastern Nevada to Vancouver-based West Kirkland Mining (CVE:WKM).
The deal will also allow Rubicon to retain a significant interest in any future discovery from the 909 square kilometre area in the Trend.
Under the terms of the transaction, West Kirkland can earn an initial 51% interest in the portion of Rubicon's property package located northeast of the Long Canyon gold deposit, while it can earn a 60% interest in the part of the assets that adjoin the KB and TUG properties, which are optioned by West Kirkland from Fronteer Gold, acquired by Newmont in February.
Recent discoveries made by Fronteer at Long Canyon have opened up new potential in the area for large scale gold deposits. Long Canyon is located along a north east structural setting in rocks only recently discovered to be favourable hosts for significant gold mineralization.
The consolidation of property for West Kirkland also creates a significant new opportunity. Currently, the company is drilling on the TUG property in the area of a shallow historic gold resource.
In exchange for the first 51% interest, West Kirkland must pay a minimum in exploration expenses each year over a four-year period. In the first year, West Kirland will spend a firm $2.0 million on exploration, with Rubicon retaining a 49% holding.
To earn a larger 60% stake, West Kirkland must complete a pre-feasibility study or spend an additional $4.0 million in exploration and development work.
"We are pleased to see this large property portfolio well funded through this agreement and moved forward by a solid dedicated team at West Kirkland who has a considerable track record of discovery," said president and CEO of Rubicon, David Adamson.
"This transaction allows us to maintain our focus in Red Lake while allowing us to retain a meaningful interest in any potential discovery on our properties in Nevada".
Indeed, Rubicon's focus is the high grade Phoenix project in Red Lake, Ontario, where it controls 100 square miles of exploration ground.
West Kirkland will be the project operator for the optioned assets, with initial exploration targeted across the valley from Long Canyon, as well as adjacent to the KB and TUG deposits.