TSX: RMX | OTCQX: RBYCF
TORONTO, Jan. 23, 2018 /PRNewswire/ - Rubicon
Minerals Corporation (TSX: RMX | OTCQX: RBYCF)
("Rubicon" or the "Company") provides details on its
2018 Exploration Program at the Phoenix Gold Project (the
"Project").
2018 Exploration Program
Following a successful 2017 Exploration Program consisting of
28,500 metres ("m") of oriented drilling and 10,000 m of historical core relogging, the
Company is continuing to advance the Project with additional
drilling, test mining and bulk sample processing activities in
2018. The objectives of the 2018 Exploration Program are to:
- Complete the structural geology analysis of the F2 Gold
Deposit;
- Potentially grow the mineral resources;
- Potentially improve the classification of the mineral
resources;
- Potentially enhance and validate a new geological model and
updated Mineral Resource Estimate with data from test mining, bulk
sample processing and additional drilling;
- Deliver an updated NI 43-101 Mineral Resource Estimate in the
second half of 2018; and
- Gather test mining data for a potential feasibility study of
the Project.
The activities and objectives outlined in the 2018 Exploration
Program are subject to change depending upon observations and
outcomes gathered from the exploration activities.
Up to 14,000 metres of drilling
The 2018 Exploration Program plans for 10,000 m of infill and step-out drilling from the
305-, 610- and 685-metre levels to potentially improve mineral
resource classification and grow the mineral resources within the
F2 Gold Deposit. In addition, the Company plans up to 4,000 m of bazooka drilling, which entails
drilling short holes within the developed test stopes to better
define the extent of the mineralization in the stoping blocks and
stoping shapes.
Underground development and test mining
Rubicon has advanced 153.6 m in
exploratory underground development at the Project on the 122- and
244-metre levels. The Company has begun stockpiling mineralized
development material on surface that will ultimately be used for
bedding in the mill. Upon completion of the development program,
the Company will move into a test mining phase that is anticipated
to commence in mid-2018.
Rubicon has identified a number of stopes to conduct its test
mining activities. These test stopes are located in the upper
portion of main F2 Gold Deposit mineralized envelope and have
substantial development and drilling already completed, enabling
the Company to take advantage of sunk capital, reducing costs and
timelines. Please refer to Diagrams 1 to 6 at the end of this
release for visual depictions of the planned test mining. During
the test mining program, Rubicon plans to:
- Test various mining methods, including sublevel longhole
stoping and mechanized cut-and-fill, which will help determine the
appropriate mining method(s) in the future;
- Gather data including chips, muck samples and mapping that will
help to potentially reconcile, refine, and validate the new
geological model and Mineral Resource Estimate; and
- Collect cost data that would be beneficial for a potential
feasibility study of the Project.
Rubicon is planning to test mine an initial 15,000 to 25,000
tonnes of mineralized material from the test stopes. Based on the
2016 Mineral Resource block model, the estimated grades of the
mineralized material from the test stopes are between 4 to 6 grams
per tonne of gold. The Company cautions that these estimates are
not necessarily representative of the estimated block model grades
that Rubicon and its consultants are formulating for an updated
Mineral Resource Estimate of the F2 Gold Deposit. Rubicon will
continue to stockpile mineralized material on surface from the test
mining until sufficient tonnes have been accumulated to be
processed through the mill.
Milling of bulk sample
The Company plans to re-start its mill at the Project to process
the mineralized bulk sample material from the test mining. The mill
is currently configured and permitted to process approximately
1,250 tonnes per day. Rubicon will charge up its mill using
low-grade development material prior to processing mineralized
material from test mining. The Company anticipates operating the
mill between 700 to 1,000 tonnes per day and will clean out the
mill following the processing of all bulk sample material. Rubicon
anticipates mill start up to commence in mid-2018.
Preliminary structural analysis, updated geological model and
NI 43-101 Mineral Resource Estimate
The Company and its external consultants are completing an
initial draft of the preliminary structural analysis of the F2 Gold
Deposit, which will potentially form the foundation of a new
geological model. Rubicon expects to communicate observations from
the preliminary structural analysis in the first quarter of
2018.
The new data collected from the diamond drilling, test mining,
and bulk sample processing will be used to further enhance and
refine the new geological model and potentially validate the
updated NI 43-101 Mineral Resource Estimate for the Project.
Rubicon remains on track to deliver the NI 43-101 Mineral Resource
Estimate in the second half of 2018. The Company could then
potentially commence a feasibility study if there is a meaningful
increase in mineral resources at the Project.
2018 Budget and Cash Position
Expenditures in 2018 are estimated to be between C$15-18 million, including all site and corporate
costs. This excludes any proceeds from the potential sale of gold
recovered from the bulk sampling of the mineralized material.
Rubicon had an approximate cash balance of C$22 million at the
beginning of the year.
CEO's Comments
Rubicon President and Chief Executive Officer, George Ogilvie, P. Eng., commented, "We are
halfway through the 18 to 24-month plan that we outlined when we
completed the restructuring of the Company in December 2016, and we are encouraged by our
progress to-date. We successfully completed our 2017 Exploration
Program under budget and have collected important observations and
data, including more substantial information on the structural
geology. This has helped advance our understanding of the F2 Gold
Deposit at the Phoenix Gold Project. We will continue to gather
important observations and data from test mining and drilling
activities this year. More importantly, we will be providing a new
preliminary structural interpretation and geological model for the
F2 Gold Deposit, and deliver an updated Mineral Resource Estimate,
which remains on schedule for the second half of 2018."
"Our test mining plans are focused on stopes located in the main
F2 Gold Deposit mineralized envelope that have been substantially
developed and drilled, allowing us to take advantage of sunk
capital. The objective of the test mining is to collect data to
refine and validate the updated geological model and Mineral
Resource Estimate, as well as to substantiate components of a
potential feasibility study on the Project in the future."
About Rubicon Minerals Corporation
Rubicon 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 280 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 CORPORATION
George Ogilvie, P.Eng.
President, CEO, and Director
Cautionary Statement regarding Forward-Looking Statements
and other Cautionary Notes
This news release contains statements that constitute
"forward-looking statements" and "forward looking information"
(collectively, "forward-looking statements") within the meaning of
applicable Canadian and United
States securities legislation. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "believes", "intends", "may",
"will", "should", "plans", "anticipates", "potential", "expects",
"estimates", "forecasts", "budget", "likely", "goal" and similar
expressions or statements that certain actions, events or results
may or may not be achieved or occur in the future. In some cases,
forward-looking information may be stated in the present tense,
such as in respect of current matters that may be continuing, or
that may have a future impact or effect. Forward-looking statements
reflect our current expectations and assumptions, and are subject
to a number of known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or
achievements to be materially different from any anticipated future
results, performance or achievements expressed or implied by the
forward-looking statements. Forward-looking statements include, but
are not limited to statements regarding the activities, objectives
and other details of the 2018 Exploration Program, the anticipated
timing, activities, objectives and other details of the test mining
program at the Phoenix Gold Project, the anticipated timing and
details of the planned re-start and operation of the mill at the
Phoenix Gold Project, the anticipated timing of the communication
of the Company's preliminary structural analysis observations, the
anticipated timing of the delivery of the NI 43-101 Mineral
Resource Estimate and potential commencement of a feasibility
study, and the anticipated level of expenditures in 2018
Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made and
represent management's best judgment based on facts and assumptions
that management considers reasonable. If such opinions and
estimates prove to be incorrect, actual and future results may be
materially different than expressed in the forward-looking
statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Rubicon to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among others: possible variations in mineralization, grade or
recovery or throughput rates; uncertainty of mineral resources,
inability to realize exploration potential, mineral grades and
mineral recovery estimates; actual results of current exploration
activities; actual results of reclamation activities; uncertainty
of future operations, delays in completion of exploration plans for
any reason including insufficient capital, delays in permitting,
and labour issues; conclusions of future economic or geological
evaluations; changes in project parameters as plans continue to be
refined; failure of equipment or processes to operate as
anticipated; accidents and other risks of the mining industry;
delays and other risks related to operations; timing and receipt of
regulatory approvals; the ability of Rubicon and other relevant
parties to satisfy regulatory requirements; the ability of Rubicon
to comply with its obligations under material agreements including
financing agreements; the availability of financing for proposed
programs and working capital requirements on reasonable terms; the
ability of third-party service providers to deliver services on
reasonable terms and in a timely manner; risks associated with the
ability to retain key executives and key operating personnel; cost
of environmental expenditures and potential environmental
liabilities; dissatisfaction or disputes with local communities or
First Nations or Aboriginal Communities; failure of plant,
equipment or processes to operate as anticipated; market conditions
and general business, economic, competitive, political and social
conditions; our ability to generate sufficient cash flow from
operations or obtain adequate financing to fund our capital
expenditures and working capital needs and meet our other
obligations; the volatility of our stock price, and the ability of
our common stock to remain listed and traded on the TSX.
Forward-looking statements contained herein are made as of
the date of this news release and Rubicon disclaims any obligation
to update any forward-looking statements, whether as a result of
new information, future events or results or otherwise, except as
required by applicable securities laws. Readers are advised to
carefully review and consider the risk factors identified in the
Company's annual information form dated March 29, 2017 under the heading "Risk Factors"
and in other continuous disclosure documents of the Company filed
at www.sedar.com for a discussion of the factors that could cause
Rubicon's actual results, performance and achievements to be
materially different from any anticipated future results,
performance or achievements expressed or implied by the
forward-looking statements. Readers are further cautioned that the
foregoing list of assumptions and risk factors is not exhaustive
and it is recommended that prospective investors consult the more
complete discussion of Rubicon's business, financial condition and
prospects that is included in this news release. The
forward-looking statements contained herein are expressly qualified
by this cautionary statement.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
SOURCE Rubicon Minerals Corporation