Rubicon Minerals Commences Bulk Sample Processing and Files its Second Quarter 2018 Results
TORONTO, Aug. 9, 2018- Rubicon Minerals Corporation (TSX: RMX | OTCQX: RBYCF) (“Rubicon” or the “Company”) announces that it has commenced processing of the bulk sample mineralized material extracted from test mining activities at the Phoenix Gold Project (the “Project”). The Company has also filed its Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the quarter-ended June 30, 2018. The Company confirms that copies of these interim filings can be obtained at www.rubiconminerals.com or www.sedar.com.
- Bulk sample processing commences at the Phoenix Gold Project: Rubicon is processing stockpiled mineralized material through its state-of-the-art mill at the Project. The Company anticipates processing between 25,000 to 30,000 tonnes of mineralized material from three test stopes. The results of the test trial mining will be reconciled to the 2018 Mineral Resource Estimate in the fourth quarter of 2018.
- Cash position: As of August 8, 2018, the Company had cash and cash equivalents and short-term investments of approximately C$14.6 million.
- Exploration and evaluation expenditures: For the second quarter of 2018, the Company spent approximately C$5.5 million in expenditures related to underground development, drilling, maintenance and technical consulting fees. Expenditures were up $0.4 million versus the first quarter of 2018 as the Company ramped up spending on the mill facility in preparation for bulk sample processing activities at the Project. The Company anticipates exploration and evaluation expenditures to increase in the third quarter of 2018, primarily due to an increase in activity from the bulk sampling and processing activities at the Project. Rubicon expects expenditures to decrease in the fourth quarter of 2018 following the completion of the bulk sampling and processing activities. The costs incurred to date in 2018 are in line with our planned expenditures.
- General and administrative expenses (including salaries and benefits, and consulting and professional fees): For the second quarter of 2018, the Company spent approximately C$1.5 million on expenditures related to general and administrative, salaries and benefits, and consulting and professional fees. Expenditures were flat compared to the first quarter of 2018.
Bulk Sample Processing Commences at the Project
Rubicon has commenced the processing of 25,000 to 30,000 tonnes of mineralized bulk sample material extracted from the F2 Gold Deposit. More than 20,000 tonnes of mineralized material from the #977 and #015 test stopes have been blasted, mucked and stockpiled separately on surface. The Company is currently blasting the #161 test stope. Rubicon has utilized the sublevel longhole stoping method on the test stopes to determine the amenability of bulk mining methods, following the completion of a new structural and geological interpretation for the F2 Gold Deposit. Please review the Rubicon news release dated April 30, 2018 and associated NI 43-101 Technical Report for the Phoenix Gold Project, including the F2 Gold Deposit, filed on SEDAR on June 13, 2018 for further details on the 2018 Mineral Resource Estimate and the new structural and geological interpretation for the F2 Gold Deposit.
Over the past several weeks, the Company undertook the commissioning of its state-of-the-art permitted 1,250-tonne per day mill, which included the processing of approximately 5,000 tonnes of development material to bed in the mill. After the mill was commissioned, Rubicon commenced and completed the processing of mineralized material from the #015 test stope through its mill. The Company is now conducting a partial clean out of the mill circuit, allowing for the collection of data attributed to the #015 test stope. Rubicon will repeat this process with the #977 and #161 test stopes sequentially. The results from the bulk sample will be reconciled to the 2018 Mineral Resource block model estimate for the tested areas, which will be used to evaluate the new geological model. The Company has collected more than 8,000 assay results from closely-spaced stope drilling and an extensive chip and muck sampling program at various points throughout the test mining activities. The Company expects to complete the bulk sample processing in the third quarter of 2018 and the block model reconciliation in the fourth quarter of 2018.
Drilling Activities and the Exploration Drift at the 610-Metre Level
For 2018, Rubicon has completed 10,000 metres (“m”) of infill and step-out drilling of a planned 20,000 m, with assay results pending. Rubicon is currently drilling from the 685-metre level. The Company has excavated the first of two diamond drill cut-outs at the exploration drift on the 610-metre level and crews are continuing to excavate the second diamond drill cut-out located at the end of the exploration drift. Drill crews are currently preparing this drill station to activate a second drill by mid-August 2018. This exploration drift will allow the Company to efficiently drill the lower portions of the deposit. The purpose of the exploration drilling is to potentially improve the classification and grow the mineral resources at the Phoenix Gold Project.
Comments from the President
Rubicon President and Chief Executive Officer George Ogilvie, P.Eng., commented, “With the commencement of the bulk sample processing, we enter an important step towards potentially improving the confidence of, and evaluating, the 2018 Mineral Resource Estimate at the Phoenix Gold Project. Test mining activities went relatively well with the #977 and #015 test stopes and we are currently blasting the #161 test stope to give us the 25,000 to 30,000 tonnes of mineralized material for our bulk sample program. We are on schedule to provide the full results of the bulk sample program and its reconciliation to the block model in the fourth quarter of 2018. We plan to update the markets on the progress of our bulk sample processing and exploration activities in due course.”
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