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TSX: RMX | OTCQX: RBYCF
Rubicon Minerals Corporation (TSX: RMX | OTCQX: RBYCF) ("Rubicon" or the "Company") provides details on its 2019 Exploration Program at the Phoenix Gold Project (the "Project").
2019 Exploration Program
In November 2018, Rubicon achieved positive reconciliation results from its bulk sample program (see news release dated November 29, 2018), validating the 2018 Mineral Resource Estimate (see NI 43-101 Technical Report for the Phoenix Gold Project effective June 13, 2018) and geological model. The positive results provided Rubicon with the confidence to continue advancing and de-risking the Phoenix Gold Project and met one of the primary objectives of the Company's 2018 Exploration Program. Another primary objective of the 2018 Exploration Program is to potentially upgrade Inferred resources to the higher-confidence Measured and Indicated categories. The Company is set to release results from 20,000 metres ("m") of infill drilling completed in 2018 in the coming weeks. Looking ahead, the Company has prepared its 2019 Exploration Program with the following objectives:
-- Produce a new NI 43-101 Mineral Resource Estimate in the first
half of 2019, based on the 20,000 m of oriented diamond drill
information from the 2018 Exploration Program;
-- Release a Preliminary Economic Assessment ("PEA"), at a
minimum, for the Phoenix Gold Project in mid-to-late 2019,
based on the new NI 43-101 Mineral Resource Estimate; and
-- Continue exploration throughout 2019 with up to 20,000 m of
oriented diamond drilling, predominantly focused on growing
mineral resources and advancing our understanding of the
high-grade mineralization potential at depth.
The activities and objectives outlined in the 2019 Exploration Program are subject to change depending upon observations and outcomes gathered from the exploration activities.
610-m level exploration drift extension
In the second half of 2018, the Company completed a 280-m exploration drift at the 610-m level, which runs parallel to the strike of the F2 Gold Deposit. Rubicon has been infill drilling the F2 Gold Deposit down to the 854-m level from this exploration drift. Considering that the F2 Gold Deposit plunges to the south (mine-grid) at depth, the Company plans to extend the exploration drift to the south (mine-grid) up to 200 m to allow the Company to conduct expansionary drilling down to 1,600-m level on better angles.
Up to 20,000 m of expansionary drilling
Rubicon plans to drill up to 20,000 m of step-out drilling from the 244-, 610- and 685-m levels of the Project to potentially upgrade and grow the mineral resources. The Company is targeting areas between the 854- and 1,600-m levels to follow up on historical high-grade intercepts at depth that where too sparsely drilled for mineral resource estimation.
Updated Mineral Resource Estimate and PEA
The Company plans to deliver a new NI 43-101 Mineral Estimate in the first half of 2019, which will benefit from more than 20,000 m of oriented drilling conducted in 2018. Rubicon plans to deliver a new PEA (at a minimum) for the Project in mid-to-late 2019.
2019 Budget and Cash Position
Expenditures for the 2019 Exploration Program are estimated to be between C$10.0-12.0 million, inclusive of administrative site and corporate costs. Rubicon had an approximate cash balance of C$16.0 million at the beginning of 2019.
Announcements in December 2018
In late December 2018, the Company made a couple of announcements worth highlighting:
-- CPPIB Credit Investments Inc.("CPPIB Credit") agreed to
transfer its C$12.0 million existing secured loan facility with
Rubicon to Sprott Private Resource Lending (Collector), L.P.
("Sprott")
See December 20, 2018 news release for further details.
-- Rubicon closed a non-brokered private placement financing of
flow-through common shares of the Company for aggregate gross
proceeds of C$5.75 million.
See December 24, 2018 news release for further details.
Comments from the President and CEO
Rubicon President and Chief Executive Officer George Ogilvie, P.Eng., stated, "In 2018, we completed over 20,000 m of orientated diamond drilling on the Phoenix Gold Project, the results of which we intend to release shortly. The data from this drilling will be included in a new NI 43-101 Mineral Resource Estimate, set to be delivered in the first half of 2019. The primary objective of the drilling conducted in 2018 was to grow the Measured and Indicated resources, which currently stand at a total of 281,000 gold ounces. Depending on how much we grow the Measured and Indicated resources, the Company would undertake a PEA, at a minimum, which will be published by mid-to-late 2019."
"In 2019 we have allocated up to 20,000 m of oriented diamond drilling; following the completion of the 610-m level exploration drift extension, we will have the opportunity to drill between the 854- and 1,600-m levels. This will be the first time that we have drilled below the 854-m level during my two-year tenure as CEO and will give us the opportunity to potentially grow mineral resources at depth."
"In 2018 we also successfully completed test trial mining, bulk sampling and milling at the Phoenix Gold Project, the results of which positively reconciled to the 2018 Mineral Resource block model in terms of tonnes, grade and gold ounces. We believe this validates the 2018 Mineral Resource Estimate and existing geological model. The mill results were extremely pleasing to see, where we achieved metallurgical recoveries above 95%, with more than 40% recovered via gravity."
"We concluded 2018 with the announcement that our debt facility with CPPIB Credit had been transferred to Sprott, a more active and influential lender in the mining sector, on like-for-like terms. I also see this as an endorsement for the Phoenix Gold Project and Company itself. In addition, we raised C$5.75 million in flow-through equity financing in difficult capital markets, strengthening our balance sheet and allowing us to potentially deliver our 2019 Exploration Program. 2018 was a successful year for the Company and we aim to repeat it in 2019, as we further de-risk and advance the Phoenix Gold Project, with our long-term objective of potentially creating significant returns on investment for our shareholders."
About Rubicon Minerals CorporationRubicon Minerals Corporation is an advanced gold exploration company that owns the Phoenix Gold Project, located in the prolific Red Lake gold district in northwestern Ontario, Canada. Additionally, Rubicon controls over 285 square kilometres of prime exploration ground in Red Lake and more than 900 square kilometres of mineral property interests in the emerging Long Canyon gold district that straddles the Nevada-Utah border in the United States. Rubicon's shares are listed on the Toronto Stock Exchange (RMX) and the OTCQX markets (RBYCF). For more information, please visit our website at www.rubiconminerals.com.
RUBICON MINERALS CORPORATIONGeorge Ogilvie, P.Eng.President, CEO, and Director
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