ONTARIO – Rubicon Minerals of Toronto has released the results of the preliminary economic assessment for the F2 system at its Phoenix gold project in the Red lake Gold Camp. The PEA was prepared by AMC Mining Consultants (Canada) with metallurgical sections prepared by Soutex.
The base case using a US$1,100/oz gold price envisions annual production of 180,000 oz of gold from an underground mine for 12 years. Head grades will be 13.98 g/t Au in a 1,250-t/d mill with a gold recovery rate of 92.5%. Initial capital costs will be US$214 million.
Rubicon noted that the pre-tax, undiscounted net present value is US$937 million. The pre-tax internal rate of return will be 28%. Cash costs will be US$214/tonne milled.
The parameters, if a spot price of US$1,500/oz are used, are even better. The NPV becomes US$1,482 million, and the IRR becomes 48%. All other numbers remain the same.
Resources at the Phoenix project are 1.0 million tonnes at 14.6 g/t Au in the indicated category, and 4.2 million tonnes at 17.0 g/t in the inferred category. The deposit contains over 2.7 million oz of gold.
The Phoenix project is only one of Rubicon’s properties in the Red Lake Gold Camp. Visit its website at www.RubiconMinerals.com to read about the others.