Rubicon Minerals Announces Positive Bulk Sample Reconciliation Results, Validating the 2018 Mineral Resource Estimate
Press Release
TORONTO, Nov. 29, 2018 – Rubicon Minerals Corporation (TSX: RMX | OTCQX: RBYCF) (“Rubicon” or the “Company”) announces positive reconciliation results from its bulk sample program compared to the current block model estimates of the planned stope designs (“2018 Mineral Resource Block Model”) at the Phoenix Gold Project (the “Project”). Rubicon believes the results validate the 2018 Mineral Resource Estimate (please refer to the Technical Report filed on SEDAR on June 13, 2018). The Company has also outlined its strategy for 2019.
Table 1: Bulk Sample Reconciliation Results
|
Categories |
Bulk Sample Results (3 test stopes) |
2018 Mineral Resource (3 test stopes) |
Difference (∆) |
Difference |
|
|
Before unplanned mining dilution |
|||||
|
Tonnes (“t”) |
32,551 |
30,360 |
+2,191 |
+7.2% |
|
|
Gold grade (“g/t Au”) |
4.93 |
4.65 |
+0.28 |
+6.1% |
|
|
Gold ounces (“oz”) |
5,165 |
4,539 |
+625 |
+13.8% |
|
|
Unplanned mining dilution1 |
8.7% |
10.0%2 |
-1.3 |
-13.0% |
|
|
After unplanned mining dilution |
|||||
|
t |
35,629 |
33,164 |
+2,465 |
+7.4% |
|
|
g/t Au |
4.51 |
4.26 |
+0.25 |
+5.9% |
|
|
oz |
5,165 |
4,539 |
+625 |
+13.8% |
|
|
1Assumes zero grade for unplanned mining dilution |
|
2Rubicon estimates |
|
3 Based on a 3.0 g/t Au cut-off grade |
|
*Numbers may not add up due to rounding |
Key Highlights from the Bulk Sample Program:
- The bulk sample results, before unplanned mining dilution, reported 32,551 t at a grade of 4.93 g/t Au containing 5,165 gold ounces, resulting in a positive reconciliation of +7.2%, +6.1%, and +13.8% compared the 2018 Mineral Resource Block Model tonnes, grade, and ounces, respectively;
- The Phoenix Gold Project mill achieved 95.1% gold recovery, with 43.2% of gold recovered from gravity, and a throughput rate of 70 tonnes per hour (“tph”), or equivalent to 1,540 tonnes per day (“tpd”) on a 22-hour availability;
- Rubicon utilized the sublevel longhole stoping (bulk mining method) and achieved an average unplanned mining dilution of 8.7%; and
- A conference call with Rubicon’s senior management will be held today to discuss the bulk sample reconciliation results at 10:00 am ET. Canada/ U.S. toll-free dial-in number +1(888) 231-8191, International dial-in number +1 (647) 427-7450, webcast link: https://event.on24.com/wcc/r/1889299/C10EA8A3496852A96FA315A673E6DBFC.
Achievements Since the December 2016 Restructuring Transaction
- Rubicon Board and management team strengthened;
- Assembled an experienced and skilled site management team;
- Geologically mapped, including structural mapping, all underground excavations;
- Completed more than 45,000 metres (“m”) of oriented structural, infill, step-out, and short-hole bazooka drilling;
- Engaged Golder Associates Limited (“Golder”) (primary consultant) and T. Maunula & Associates (peer reviewer);
- Developed a new geological model and structural interpretation (news release March 12, 2018);
- Delivered the 2018 Mineral Resource Estimate (news release, April 30, 2018; Technical Report filed on SEDAR June 13, 2018), which demonstrated a significant increase in mineral resources for the F2 Gold Deposit;
- Successfully commissioned, operated, and de-commissioned the Project mill, achieving a throughput rate of 70 tph, or equivalent to 1,540 tpd;
- Completed a test trial mining and bulk sample processing program of 35,629 t (diluted) of mineralized material; and
- Achieved positive bulk sample reconciliation results, validating the 2018 Mineral Resource Estimate and geological model.
Strategy for 2019:
- Deliver an updated Mineral Resource Estimate, which will benefit from more than 20,000 m of oriented drilling conducted in 2017 and 2018 (first half of 2019);
- Provide a Preliminary Economic Assessment (“PEA”), at a minimum, for the Phoenix Gold Project (mid-2019);
- Continue infill and step-out diamond drilling to upgrade the mineral resource categories and grow the overall mineral resources (throughout 2019);
- Commence basic exploratory work on high-priority Close Proximity and Regional Targets in Red Lake (throughout 2019); and
- Continue to evaluate accretive business opportunities to deliver shareholder value (throughout 2019).
Comments from the President
Rubicon President and Chief Executive Officer George Ogilvie, P.Eng., stated, “We restarted activities at the Phoenix Gold Project with a goal to successfully complete a test trial mining and bulk sample processing program, and bring confidence to the 2018 Mineral Resource Estimate with positive reconciliation results. I am pleased to report that we achieved these key milestones. We believe the positive bulk sample reconciliation results validate the 2018 Mineral Resource Estimate and new geological model of the F2 Gold Deposit.”
“We observed encouraging data points during the test trial mining and bulk sampling program that will have a positive impact on the potential economics of the Phoenix Gold Project; test trial mining demonstrated the amenability of bulk mining and we achieved an unplanned mining dilution of 8.7%; metallurgical recovery improved to 95.1% from the 91.5% reported in 2015; and 43.2% of gold recovery was from gravity concentration, which will reduce mill operating costs under a potential commercial production scenario. Mill operations exceeded our expectations. We operated the mill on a two-week on, two-week off basis and reached throughput rates of 70 tph, or equivalent to 1,540 tpd, which is higher than the 1,250 tpd average nameplate capacity. The mill was designed and constructed with a capacity to reach 1,800 tpd with minor modifications. This gives us significant flexibility to accept increased tonnes in future mining, if warranted.”
“With a validated 2018 Mineral Resource Estimate and geological model, we now have a strong foundation to continue to advance, grow, and de-risk the Phoenix Gold Project. Going forward, our intent is to closely evaluate the positive reconciliation results, and along with additional exploration data, assess the economic viability of the Phoenix Gold Project, particularly where we can utilize significant underground infrastructure to access modelled stopes. In addition, 2019 will see us turn our attention to our high-priority Close Proximity underground exploration targets, including the past-producing McFinley target, all within 500 m of the Phoenix Gold Project shaft. We will also initiate geophysics and geochemical work on several of our Regional Exploration targets.”
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