Rubicon Minerals Announces the Filing of its Full Year 2018 Results
TORONTO, March 25, 2019 – Rubicon Minerals Corporation (TSX: RMX | OTCQX: RBYCF) (“Rubicon” or the “Company”) announces that it has filed its Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2018. The Company confirms that copies of these interim filings can be obtained at www.rubiconminerals.com or www.sedar.com.
Financial Highlights from the year ended December 31, 2018
- Cash position: As of December 31, 2018, the Company had cash and cash equivalents and short-term investments of approximately $15.4 million.
- Exploration and evaluation expenditures: For the year ended December 31, 2018, the Company spent approximately $24.2 million in expenditures related to underground development, drilling, maintenance and technical consulting fees which were offset by $7.4 million in proceeds recognized from the sale of precious metals. Expenditures were up $11.5 million compared to prior year as the Company ramped up spending on the mill facility for the duration of the bulk sample processing program.
- Raised $16.6 million in financing proceeds: On February 26, 2018 and December 24, 2018, the Company closed a public flow-through share offering of for aggregate gross proceeds of $10.9 million and $5.7 million respectively to fund ongoing operations.
- General and administrative expenses (including salaries and benefits, and consulting and professional fees): The Company spent approximately $5.1 million on expenditures related to general and administrative, salaries and benefits, and consulting and professional fees in 2018. Expenditures were up $0.9 million compared to 2017 primarily related to consulting and professional fees as well as higher overhead and compensation expenses.
Rubicon had a successful 2018 campaign, achieving several significant milestones to de-risk the Phoenix Gold Project. Some of the key milestones achieved include:
- Developed a new structural interpretation and geological model of the F2 Gold Deposit, showing more continuity of gold mineralization within the HiTi Basalt Units and potential amenability of bulk mining methods.
- Delivered the new 2018 Mineral Resource Estimate, showing material increases in tonnes (“t”), grade, and ounces on all mineral resource categories.
- Completed test trial mining of more than 35,000 t of mineralized material and demonstrated the amenability of the sublevel longhole bulk mining method resulting in $7.4 million in net proceeds realized from the sale of precious metals.
- Successful re-start of the Project mill, achieving peak throughput rates of approximately 1,540 tonnes per day (based on a 22-hour mill availability) and gold recoveries of 95.1%, with 43.2% of gold recovered via gravity circuit, during the bulk sample processing program.
- Positive bulk sample reconciliation results compared to the resource block model estimates of the planned stopes, validating the new geological model and 2018 Mineral Resource Estimate.
- Completed 20,000 metres (“m”) of orientated infill drilling to improve the mineral resource categories of the 2018 Mineral Resource Estimate.
- CPPIB Credit Investments Inc. (“CPPIB Credit”), a wholly owned subsidiary of the Canada Pension Plan Investment Board agreed to transfer its $12.0 million existing secured loan facility with Rubicon (“Loan Facility”) to Sprott Private Resource Lending (Collector), L.P. (“Sprott”). In addition, Sprott has amended the Loan Facility to adjust the minimum cash requirement from $5.0 million to $1.0 million in exchange for warrants, improving the Company’s financial flexibility.
- During the year ended December 31, 2018 the Company commissioned a metal effluent treatment plant for the purposes of discharging water from the tailings management facility (“TMF”) and was able to discharge water from the TMF under existing permits as it continued to comply with all environmental discharge requirements.
The Company believes its 2018 achievements have significantly advanced the Project and provides management with a solid foundation to continue advancing the Project towards a potential commercially viable operation. As of March 22, 2019, the Company had cash and cash equivalents and short-term investments of approximately $11.0 million. In management’s view, the Company has sufficient financial resources to the Company’s 2019 planned activities as follows:
- Produce an updated NI 43-101 Mineral Resource Estimate in the first half of 2019, based on the 20,000 m of orientated diamond drill information from the 2018 Exploration Program;
- Release a Preliminary Economic Assessment (“PEA”), at a minimum, for the Phoenix Gold Project in second half of 2019, based on the updated NI 43-101 Mineral Resource Estimate. The PEA will include a preliminary life of mine plan, updated Project economics and a preliminary production profile. 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.
- Continue exploration throughout 2019 with up to 20,000 m of orientated diamond drilling, predominantly focused on growing mineral resources and advancing the Company’s understanding of the high-grade mineralization potential at depth.
- Within the Phoenix Gold Property claim boundary, the Company has identified exploration targets within 2 kilometres from the Phoenix Gold Project shaft and surface infrastructure, which the Company intends to explore in 2019. Rubicon believes these targets have strong mineral potential based on historical mining and exploration.
Please refer to our Financial Statements and MD&A for the year ended December 31, 2018 for further details.
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 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 CORPORATION
George Ogilvie, P.Eng.
President, CEO, and Director