GOLD: Rubicon reports positive PEA, doubled resources

ONTARIO – Toronto-based Rubicon Minerals Corp. must be pleased with the new preliminary economic assessment for its F2 gold system that buoys an after tax internal rate of return at 27.0% and a 5% discounted after tax net present value of $531.0 million. Moreover, the indicated mineral resource has more than doubled to 1.129 million contained ounces of gold.

The F2 system is part of the Phoenix gold project near Red Lake. The PEA examined a 1,900-t/d operation using mostly longhole stoping. The mill feed grade is estimated at 8.1 g/t Au at a 5.0 g/t cut-off. Average annual gold production would be 165,300 oz, peaking in 2022 at 242,000 oz. Average life of mine cash operating costs will be in the neighbourhood of $629 per ounce. Production could start in 2014 after pre-production capital expenditures of $224.0 million.

The mineral resource was updated after the latest 116,000 metres of infill drilling completed since 2011. The indicated resource grew by 111% to 4.12 million tonnes grading 8.52 g/t Au (4.0 g/t cut-off), containing 1.129 million oz. The inferred material adds up to 7.45 million tonnes at 9.26 g/t Au (4.0 g/t cut-off) or 2.219 million oz.

Details are available at RubiconMinerals.com in the new release dated June 25, 2013.