Rubicon Files Technical Report for the Phoenix Gold Project, Red Lake, Ontario
TORONTO, ONTARIO--(Marketwired - Feb 25, 2016) - Rubicon Minerals Corporation (TSX:RMX)(OTC PINK:RBYCF) ("Rubicon" or the "Company") announces the filing of a technical report for the Phoenix Gold Project, including the F2 Gold Deposit, located in Red Lake, Ontario, in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects (the "Technical Report"). The Technical Report, dated effective January 11, 2016, was prepared by SRK Consulting (Canada) Inc. ("SRK") which is a consulting firm independent of Rubicon. The Technical Report was filed on SEDAR pursuant to the press release of Rubicon dated January 11, 2016 announcing the results of an updated mineral resource statement for the F2 Gold Deposit. A copy of the Technical Report can be viewed online under Rubicon's profile at www.sedar.com and on the Company's website at www.rubiconminerals.com.
Recommended Exploration Work
The Technical Report provides detail on the Phoenix Gold Project (the "Project") and the reduction in mineral resources in the 2016 SRK mineral resource estimate compared to the 2013 SRK mineral resource estimate. Although the underground development and trial stoping program in 2015 highlighted the complexity in the distribution of higher-grade gold intercepts in the upper part of the F2 Gold Deposit, both Rubicon and SRK believe there is a potential to expand the mineral resource with further exploration and delineation work. There are many high-grade gold drill intercepts with good widths below the 610-metre level that merit follow-up drilling. With the new understanding of the structural controls associated with gold mineralization above 610-metre level, there is further opportunity to explore and delineate additional gold resources with appropriately orientated drilling. The Company, in consultation with SRK and other geological advisors, has been developing updated exploration plans for the F2 Gold Deposit. In addition, the Company has been reviewing other historic exploration targets on its 286-square kilometre land package in Red Lake, Ontario, Canada.
In addition, SRK believes that closely spaced drilling is required to demonstrate the continuity of the higher-grade gold mineralization above and below the 305-metre level of the F2 Gold Deposit. SRK also believes that there is an opportunity to expand the mineral resources with additional drilling, at oblique angles to the lithology packages and the east-west (mine grid) trending cross-cutting shear structures ("D2 structures").
A proposed exploration program should comprise of the following components:
- Step-out and infill core drilling targeting shallow (above and below the 305-metre level) gold mineralization and strike extensions with the objective to establish continuity of the higher-grade gold mineralization associated with D2 structures and expand the mineral resources;
- Follow-up diamond drilling in areas of lower drilling density below the 610-metre level, from existing development at the level. This program should target high-grade intercepts and the up-dip and down-dip extensions of the D2 structures intersecting the high-titanium basalt units ("HiTi basalt") with the potential to expand the mineral resources;
- Step-out core drilling to test the extensions of the modelled breccia zone and other breccia zones intersected by drilling;
- Underground development at the 610-metre level to establish additional drilling stations and provide access for drilling;
- Underground exploration drifting into the mineralized zones and sampling to study and characterize further the continuity of the gold mineralization and to validate the mineral resource model;
- Geological and mineral resource modelling to integrate new geology and drilling information and revised geological interpretation as required.
The understanding of the distribution of the gold mineralization, its form and continuity, would also benefit from additional underground exposures. The underground ramp to 366-metre level should be completed to allow development of a 400-metre drive primarily within the HiTi basalt. This drive should provide good exposures to validate the geological interpretation and the mineral resource model.
The Company is considering a phased approach to an exploration program. The preliminary phase includes approximately 25,000 metres of infill and step-out drilling from the 610-metre level, and between 244- and 366-metre levels, at an estimated cost of C$6 million. Further exploration and development work would be contingent upon a successful program.
Other than conducting desktop studies, Rubicon does not have any intentions to proceed with this exploration program in the immediate future. This exploration program would require the Company to secure additional funding. Rubicon continues to evaluate strategic alternatives for the benefit of the Company and its stakeholders and remains in discussions with its lenders and other parties.
RUBICON MINERALS CORPORATION
Michael Winship, Interim President and Chief Executive Officer
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. Forward-looking statements include, but are not limited to statements regarding the potential to expand the resource at the Project, the requirements to demonstrate the continuity of the higher-grade gold mineralization of the F2 Gold Deposit, the required components of a potential exploration program and the approximate cost and requirement for additional funding of a potential exploration program.
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. The material assumptions upon which such forward-looking statements are based include, among others, that: the demand for gold and base metal deposits will develop as anticipated; the price of gold will remain at levels that would render the Phoenix Gold Project potentially economic; that any proposed operating and capital plans will not be disrupted by operational issues, power supply, labour disturbances, or adverse weather conditions; Rubicon will continue to have the ability to attract and retain skilled staff; and the mineral resource estimate as disclosed in the Technical Report will be realized.
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; actual results of current exploration activities; actual results of reclamation activities; conclusions of future economic 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 construction activities and operations; timing and receipt of regulatory approvals of operations; the ability of Rubicon and other relevant parties to satisfy regulatory requirements; the availability of financing for proposed transactions, 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; market conditions and general business, economic, competitive, political and social conditions.
The Technical Report includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The quantity and grade of reported inferred resources referred to in the Technical Report are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource category.
It is important to note that the information provided in this news release is preliminary in nature. There is no certainty that a potential mine will be realized. A mine production decision that is not based on a feasibility study demonstrating economic and technical viability does not provide adequate disclosure of the increased uncertainty and specific risks of failure associated with such a production decision.
Forward-looking statements contained herein are made as of the date of this 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. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Cautionary Note to U.S. Readers Regarding Estimates of Indicated and Inferred Resources
This news release uses the terms "measured" and "indicated" mineral resources and "inferred" mineral resources. The Company advises U.S. investors that while these terms are recognized and required by Canadian securities administrators, they are not recognized by the SEC. The estimation of "measured", "indicated" and "inferred" mineral resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. The estimation of "inferred" resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. It cannot be assumed that all or any part of a "measured", "indicated" or "inferred" mineral resource will ever be upgraded to a higher category.
Under Canadian rules, estimates of "inferred mineral resources" may not form the basis of feasibility studies, pre-feasibility studies or other economic studies, except in prescribed cases, such as in a preliminary economic assessment under certain circumstances. The SEC normally only permits issuers to report mineralization that does not constitute "reserves" as in-place tonnage and grade without reference to unit measures. Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. U.S. investors are cautioned not to assume that any part or all of a "measured", "indicated" or "inferred" mineral resource exists or is economically or legally mineable. Information concerning descriptions of mineralization and resources contained herein may not be comparable to information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.
Mineral Resources
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The mineral resources in this press release were reported using CIM Standards.
Qualified Persons
The content of this news release has been read and approved by Howard Bird, B.Sc. (Hons.), P. Geo., Vice President, Exploration and is a Qualified Person as defined by NI 43-101.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact
Rubicon Minerals Corp.
Allan Candelario
Vice President of Investor Relations
+1 (416) 766-2804
ir@rubiconminerals.com
www.rubiconminerals.com