Rubicon Minerals Corporation

Rubicon Minerals Corporation

October 11, 2005 09:19 ET

Rubicon Options its Red Lake DMC Project to Agnico-Eagle Mines

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 11, 2005) -

$2.25MM earn-in with $500,000 committed in first year

David W. Adamson, President and CEO of Rubicon Minerals Corporation (TSX:RMX)(AMEX:RBY) is pleased to announce that Rubicon Minerals has optioned its DMC project, located in the heart of the prolific Red Lake gold camp to Agnico-Eagle Mines Ltd. Exploration by Rubicon at DMC has documented several gold-bearing environments within a newly recognized part of the Balmer sequence which, elsewhere in the camp, is host to all of the major gold deposits.

"We are particularly pleased to welcome Agnico-Eagle as a partner in Red Lake. Agnico brings a wealth of experience of exploring and mining Canadian gold deposits to Red Lake and we are delighted that they have selected the DMC project as their entry to this world class gold camp."

Rubicon believes that the DMC, like many parts of the Red Lake camp, is significantly under-explored compared to other gold mining districts. As well as the DMC, Rubicon controls major land holdings in the camp, which were acquired when gold prices were low. These include partnership with Goldcorp on the Adams Lake and Red Lake North projects, option agreements with three juniors and 100% control of several other areas, including its flagship McFinley project.

Under the terms of the agreement, Agnico must spend $2.25MM, over three years, including $500,000 firm in the first year, and make cash payments totaling $110,000, including $25,000 firm in the first year, to earn 51% interest in the project. Thereafter it may elect within one year of vesting, to increase its interest by earning one additional percent for each one million dollars expended, up to a maximum of $14 million. Post vesting, the first year budget will be capped at $1MM unless increased by mutual consent. This agreement is subject to any applicable regulatory approvals, approval by the board of Agnico and legal and title due diligence to be completed on or before October 31, 2005.

Maps outlining the DMC property are posted on the Company Website at


David W. Adamson, President & CEO

The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from targeted results. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The Company relies upon litigation protection for forward looking statements.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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