Rubicon gets ready for bulk sample at Phoenix

Recent drilling at Rubicon Minerals’(RMX-T, RBY-X) Phoenix project in Red Lake, Ont. is filling in deep target areas demonstrating that the robust F2 gold system continues to depths beyond 1,300 metres.

The company has drilled some deep holes in target area 8, in the southwestern part of the F2 gold system.

Hole 305-06, drilled from underground, returned 9 metres grading 10.9 grams gold per tonne including 4.5 metres grading 18.6 grams gold per tonne (reaching 1,396 metres depth).

Hole F2-100A, drilled from surface hit multiple zones along the way including 14 metres grading 3.1 grams gold per tonne, 8 metres grading 4.6 grams gold and one bonanza hit of 0.5 metres grading 754.2 grams gold (at a depth of 1,320 metres).

Drilling focused on target area 5 expanded the 122-10 zone. Drill hole 122-67 was designed to test 25 metres below the 122-10 zone, and it intersected 5.1 metres grading 16.3 grams gold per tonne including 1 metre grading 39.9 grams gold per tonne at a vertical depth of 941 metres.

The company has also been working on an underground drift on the 305 metre level and is now half way to reaching the F2 Core zone by October, which is about 450 metres from the mine shaft. A new drill station was set up here and three drills are now turning.

“Based on a the results of the drilling, we will take a bulk sample and put in a cross drift as well, much closer to the face of the zone,” said Bill Cavalluzo, vice president of investor relations in an interview. “And then we’ll put in four more drill stations there and drill the heck out of it.”

By the end of 2010, Rubicon will have drilled 240,000 metres at the Phoenix project with about 100,000 metres completed in 2010.

“We will make a recommendation to the board in the first quarter of 2011 regarding future plans,” Cavalluzo says.

The company is targeting production in 2012. The property already has a 1,250 tonne-per-day production shaft, hoist and a 25-year tailings facility.

Rubicon says it will soon start the excavation of a second underground exit as well from the 305 metre level, noting that a provincial mining permit would require a second exit.

The company has also secured an option to buy a larger hoist than that would allow the project to increase the mining capacity to 2,000 tonnes per day.

Rubicon shares were up nearly 5% today, or 19¢, to $4.32 per share on a trading volume of 1.2 million shares. Rubicon has 213.6 million shares outstanding and a 52-week trading range between $2.76 and $5.41.