Rubicon Minerals Corp. (TSX:RMX,NYSEMKT:RBY) released a revised geological model and updated mineral resource estimate for the F2 gold deposit located at its Phoenix gold project.

Rubicon Minerals Corp. (TSX:RMX,NYSEMKT:RBY) released a revised geological model and updated mineral resource estimate for the F2 gold deposit located at its Phoenix gold project.
The company also said that it’s retained BMO Capital Markets and TD Securities as financial advisors. The firms will help Rubicon’s board “in evaluating strategic alternatives available to the Company, including merger and divestiture opportunities either at the corporate or asset level, obtaining new financing, and capital restructurings to maximize shareholder value.”
As quoted in the press release:

  • The 2016 SRK Geological Model demonstrates that the F2 Gold Deposit is more geologically complex and the high-grade gold mineralization is less continuous than previously understood;
  • The new drilling and recent trial stoping information has significantly changed the understanding of the variable spatial distribution of the gold mineralization. East-west (mine grid) trending cross-cutting shear structures (“D2 structures“) have been interpreted as the main control on the distribution of later stage higher-grade gold mineralization. This is the key factor contributing to the limited continuity of the gold mineralization compared to previous understanding;
  • The decrease in reported mineral resources are mainly the result of the new drilling information, changes in modelling approach and restrictions to the depth of the interpreted extent of the gold mineralization;
  • Rubicon has suspended activities related to the Phoenix Project Implementation Plan (“PPIP“)
  • A technical report will be filed within 45 days of this news release to support the technical disclosure herein;
  • Rubicon remains engaged in ongoing discussions with its lenders;
  • In 2015, the Company produced 4,906 ounces of gold from 57,793 tonnes of mineralized material; and
  • Estimated cash and cash equivalents as of December 31, 2015 was approximately C$22.4 million(excluding C$4.5 million in restricted cash).

Michael Winship, interim president and CEO of Rubicon, commented:

The revised geological model prepared by SRK indicates that the gold mineralization in the upper-levels of the F2 Gold Deposit is less continuous compared to the geological model for the 2013 mineral resource estimate. The revised model has significantly decreased the tonnes, grade and ounces in the F2 Gold Deposit. The revised model suggests that more exploration is required at depth and along strike in order to develop an economic mining operation at the Phoenix Gold Project. The Board has retained financial advisors to evaluate strategic alternatives with the goal to maximize shareholder value.

Click here to read the full Rubicon Minerals Corp. (TSX:RMX,NYSEMKT:RBY) press release.


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