ONTARIO – Rubicon Minerals Corp. of Toronto has completed sinking the shaft at its Phoenix gold project near Red Lake. The shaft is 730 metres deep with a loading pocket on the 337 metre level. Two 10-tonne skips and two cages have been installed. A loading pocket is planned for the 685 metre level.
Underground development has begun on the 244 level for diamond drilling. Vertical development on the 122 and 305 levels has begun to provide access for the ventilation system expansion. Additional lateral development is planned on the 122, 244, 305 and 610 levels.
The work doesn't stop there. The company has completed initial development of the tailings facility sufficient to manage tails from the first two years of operation.
Rubicon is pressing forward with mill construction. The mill building is complete and the overhead cranes are operational. The semi-autogenous (SAG) and ball mill were received at the site last year. The foundations for the thickener and mills and most of the outdoor concrete slabs have been poured.
Surface infrastructure is complete including a 200-person camp, roads, a new power line and substation. The 2,500-hp hoist and headframe have been commissioned.
Rubicon says that completion of the mill will be the deciding factor in putting the Phoenix mine into production. Mill construction has been deferred to preserve cash until the final financing can be secured.
Meanwhile, the company has entered into a $75-million gold stream agreement with Royal Gold. Rubicon has agreed to deliver 6.40% of the projected annual gold output until 135,000 oz have been delivered and 3.15% thereafter. Royal Gold's cash purchase price per ounce will be 25% of the spot price at the time of delivery.
Rubicon estimates it will need an additional $100 million to complete the Phoenix project.
Tuesday's conference call concerning progress at Phoenix is archived at RubiconMinerals.com.