Rubicon Minerals (RMX-T, RBY-X) closed $1.46 higher today in Toronto at $6.06 per share, a gain of 31.74%, on news of a four million ounce inferred gold resource estimate at its Phoenix gold project in Red Lake, Ontario.
Nearly twelve and a half million shares traded hands after Rubicon announced that its high-grade F2 gold system, part of the company’s 100%-owned Phoenix project, has an inferred resource of 6.2 million tonnes grading 20.1 grams gold per tonne at a cut-off grade of 5 grams gold per tonne.
The inferred resource was based on 166,886 metres of diamond drilling in 237 drill holes carried out between the time of the initial discovery of the deposit in February 2008 until July 31 this year. The NI 43-101 compliant resource estimate does not include about 41,702 metres of drilling completed since July 31.
The gold grade is high “compared to most major gold deposits around the world,” Rubicon outlined in a press release, stating it is “consistent with the overall Red Lake camp average grade, which is Red Lake’s key advantage.”
Next on the agenda the company says is to upgrade part of the inferred resource, move towards development and continue to expand the gold system. Underground development has already cross-cut mineralized zones at the 305-metre level and delineation drilling is underway.
The system remains open along strike and to depth beyond the current drill limit. Large areas remain to be infill-drilled and the system is open in all directions, the company says.
Rubicon owns about 40% of the “exploration real estate” in Red Lake, according to David Adamson, the company’s president and chief executive. Altogether the company controls 25,899 hectares of exploration ground in the Red Lake gold district.
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