TORONTO, ONTARIO — (Marketwired) — 04/14/15 — Rubicon Minerals Corporation (TSX: RMX)(NYSE MKT: RBY) (“Rubicon” or the “Company”) is pleased to announce that the development and construction of the Phoenix Gold Project (“Project”) in Red Lake, Ontario, Canada remains on schedule for projected initial production in mid-2015. The mill commissioning process has commenced ahead of schedule and is expected to continue throughout the second quarter of this year.
“I am pleased to announce that the Phoenix Gold Project is now on the homestretch to projected initial production,” stated Michael A. Lalonde, President and Chief Executive Officer of Rubicon. “We have begun commissioning the mill circuit ahead of schedule. We expect commissioning to continue throughout the second quarter, including the limited processing of low-grade development material. The stockpiling of mill feed continues. We expect that all remaining underground development prior to projected initial production will be completed by the end of May.”
The Phoenix Gold Project Development and Construction Update
Stockpiling, Underground Development and Construction
Rubicon currently has eight stopes in various stages of development between the 122- and 305-metre levels. The Company has a stockpile of approximately 11,600 tonnes of mineralized material. Stockpiling will continue as stope development accelerates and stope mining begins. Longhole drilling is underway in the first trial stope. Rubicon will be testing various mining methods, including Alimak longhole stoping. The Company expects to be processing mineralized material on an ongoing basis in mid-2015.
As of April 12, 2015, Rubicon has completed approximately 6,834 m of 8,023 m (or 85%) of the original underground development (lateral and vertical) planned prior to the start of projected initial production. As previously disclosed, management believes it has identified approximately 430 m of off-ramp development that can be eliminated from the development plan. Management expects that all remaining underground development prior to projected initial production will be completed by the end of May. Mill feed for projected production for 2015 will come from the upper levels of the deposit: 122-, 183-, 244-, and 305-metre levels. The summary of the total underground development remaining is displayed in Figure 1.
The Company is installing a crushing station at the ore pass above the 305-metre level. Crushed muck will be hauled on the 305-metre level prior to hoisting. A diagram of the crushing station is displayed in Figure 2. There is approximately C$18 million (as at March 31, 2015) of underground development capital remaining to projected initial production.
Mill Construction
Mill construction remains on schedule. Rubicon has commenced the commissioning of the following areas:
The Company will continue the commissioning phase during the second quarter of this year. The Company is in the process of completing the remaining piping, electrical and surface conveyor construction. Rubicon has approximately C$8 million (as at March 31, 2015) of mill capital expenditures remaining to projected initial production.
Surface Infrastructure and On-Site Construction
The tailings management facility is ready to accept approximately two years of tailings from operations. The remaining surface and on-site construction are near completion and are not on the critical path to projected initial production. Rubicon has approximately C$5 million (as at March 31, 2015) of on-site construction remaining to completion.
See Figure 3 for pictures of the development and construction progress of the Project. For more pictures of the development and construction, please visit our website at:
http://www.rubiconminerals.com/Investors/Photo-Galleries/default.aspx.
Additional Technical Studies
Since the release of the Preliminary Economic Assessment (“PEA”) in 2013, Rubicon has conducted and completed a number of technical studies including a study assessing the crown pillar, a study and analysis of the results from the 38,000-metre infill and definition drilling program in the upper levels of the deposit, and a study and analysis of chip and muck samples collected from stope development on the eight stopes mentioned above. Considerable additional information will be collected on ground support, dilution, and drill patterns during the trial stoping phase.
Timeline and Capital Expenditures Remaining to Projected Initial Production
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