Rubicon outlines plans for Red Lake Project

Rubicon Minerals Corp. [RMX-TSX; RBYCF-OTC] on Monday March 25 released its plans for advancing its flagship Phoenix gold project near Red Lake, Ontario, this year.

The company said it aims to produce a NI 43-101 mineral resource estimate in the first half of 2019, based on 20,000 metres of oriented diamond drill information from the 2018 exploration program.

It also plans to release a preliminary economic assessment, at a minimum, for the project in the second half of 2019, based on the updated NI 43-101 resource estimate.

“The PEA will include a preliminary life-of-mine plan, updated project economics and a preliminary production profile,” the company said.

The PEA will build upon the results of the 2018 bulk sample program and the company’s mine and mill performance during the test trial mining.

In addition, Rubicon said it plans to continue exploration throughout 2019 with up to 20,000 metres of oriented diamond drilling, predominantly focused on growing mineral resources and advancing the company’s understanding of the high-grade mineralization potential at depth.

The Phoenix Gold Project is an underground exploration project located in the district of Red Lake, in northwestern Ontario, 265 km northeast of Winnipeg, Manitoba.

Rubicon owns 100% of the Phoenix Gold Project which consists of the high-grade F2 Gold deposit, more than 9,000 metres of underground development, including a commissioned shaft that goes down approximately 730 metres below surface and surface infrastructure that includes a 1,250 tonne-per-day mill, a completed tailings management facility, electric power supply and substation.

The property is centred on the historical McFinley Shaft (now called the Phoenix Shaft) and hosts a 200-person camp.

Since acquiring the Phoenix gold project in 2002, Rubicon has conducted an extensive exploration program, which includes geological mapping, re-logging of selected historic boreholes, digital complication of available historical data, ground and airborne magnetic surveys, mechanical trenching, channel sampling, along with numerous drilling programs.

The company recently commissioned its 1,250 tonne-per-day mill, work that included the processing of approximately 5,000 tonnes of development material to bed in the mill.

Within the Phoenix gold property claim boundary, the company has identified exploration targets within 2 km of the Phoenix Gold Project shaft and surface infrastructure, which the company intends to explore in 2019. Rubicon said it believes these targets have strong mineral potential based on historical mining and exploration.

Last year, Rubicon spent $24.2 million on underground development, drilling, maintenance and technical consulting fees. This amount was offset by the $7.4 million in proceeds recognized from the sale of precious metals.

The company currently has $11 million in cash and cash equivalents and said it has sufficient funds for the activities that are planned for this year.

On Monday, Rubicon shares eased 2.4% or $0.03 to $1.20. The shares trade in a 52-week range of $1.00 and $1.73.