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Rubicon Minerals New PEA Delayed to Third Quarter 2019

Jun 26, 2019

 
Rubicon Minerals Corporation announced it plans to release a new Preliminary Economic Assessment (PEA)for its Phoenix Gold Project in the third quarter of 2019 instead of the second quarter as previously planned.
 
The company explained in a news release that the reason for the delay was to add information and observations obtained from its recent mineral resources estimates  and test trial mining and bulk sample processing program that was completed in 2018. 
During its bulk sampling Phoenix Gold Project mill  achieved 1,540 tonnes per day ("tpd") throughput rate (based on 22-hour mill availability) and gold recoveries of 95.1% (43.2% from gravity).
 
Rubicon also released its latest Mineral Resource Estimate for 2019 indicating a 110% increase in Measured and Indicated Resource estimates.
 
"We remain excited and optimistic, as we embark upon delivering a new conceptual mine plan for the Phoenix Gold Project, which will be reflected in a New PEA," said George Ogilvie, President and CEO of Rubicon.
 
" We believe that the New PEA has the potential to show strong economics considering all the new, fully commissioned surface and underground infrastructure already in place. The New PEA will benefit from real, operational data collected during our recent test trial mining and bulk sampling program, where we implemented actual mining techniques that could be utilized under a potential commercial production scenario while using our own processing facility," Ogilvie added.
 
Rubicon reported that its surface and subsurface infrastructure is ready for operations. The Hoist is fully operational, civil and earthworks are in place, electric substation is operational, and upgrades have been made to the 200-person camp, tailings management facility ("TMF") and TMF water treatment plant.
 
For its  underground infrastructure more than 14,000 metres  has been  completed, including an operational shaft down to 730 m below surface with both a mid-shaft and bottom loading pocket, and an assessment of an underground ramp to surface including known development costs and rates.  
 
The existing infrastructure provides the opportunity to move the Project into potential commercial production in a shorter time frame and at a lower construction risk than other mines at the development. 
 
Rubicon also reported that results from its 2019 diamond drilling program have been encouraging. The company encountered high-grade mineralization at both narrow and wide horizontal widths, interesected within the high titanium basalt units, the main host rock of gold mineralization at the Phoenix Project.
 
"We remain steadfast on our path to de-risk the Phoenix Gold Project and advance it towards commercial production, which we believe will result in significant long-term value to shareholders. We are continuing to evaluate ways to unlock value from our other assets, " added Ogilvie. " I look forward to providing greater details following the release of the New PEA results."
 
The Phoenix Gold Project encountered difficulties in 2015 as it tried to speed up development of the project. The project was halted in 2016 and the company entered creditor protection.  The previous management decided not to undertake a PEA and made several poor decisions as it tried to bring the deposit into production without understanding the location of the gold in the complex geological structure of the Red Lake camp.
 
The new management has shown more prudence  in advancing the project to production.
 
Rubicon holds the second largest land holding in the Red Lake Gold Camp.
 
For more information, please visit our website at www.rubiconminerals.com.