Rubicon Plans 80,000-Metre Drill Program At Phoenix

After intersecting mineralization in a number of stepout holes at its Phoenix gold project in Red Lake, Ont., Rubicon Minerals (RMX-T, RBY-X) is substantially expanding its exploration program.

Scheduled to last 12 months, Rubicon is planning to drill 80,000 metres at Phoenix, both underground and from surface. One or two rigs will drill 20,000 metres from surface, while the remainder will be drilled from underground, starting with two rigs, then expanding to four.

The gold discovery at Phoenix, which is 7 km northwest of Goldcorp’s (G-T, GG-N) Red Lake mine complex, is named the F2 zone. A 142-metre shaft at the project, the Phoenix shaft, is being dewatered and extended to 350 metres depth. Once this is completed, the company is planning to carry out 200- 400 metres of drifting from the shaft toward the F2 zone, about 450 metres away.

With a budget of $25 million, the program is one of the largest in Canada. The original program called for 40,000 metres of drilling at a cost of $15 million.

The mineralization at Phoenix consists of a vein system with some parallel veins. It starts at depths of around 100 metres, ending at 1,100 metres, although it is not continuous over the entire 1,000 metres of vertical distance. Typical vein widths are 2- 4 metres.

The F2 core zone has a strike length of 170 metres, which has been drilled extensively. Two stepout mineralized zones have been defined: a 190-metre zone northeast of the F2 core zone, and a 220-metre zone southwest of F2. If Rubicon proves continuity of mineralization over these two zones, the strike length will grow to 580 metres.

But it seems that the expanded program is more ambitious. Rubicon is now planning to drill a 1,200-metre-long target area along strike. The company plans to use surface drilling to test for mineralization, and then follow up with more detailed underground drilling.

Results from recent stepout holes include: 2.5 metres of 174 grams gold per tonne from 39 metres depth in hole 44; 0.5 metre grading 43 grams gold at 43 metres depth, followed by 0.5 metre of 261 grams gold starting at 53 metres in hole 41; and 0.5 metre of 120 grams gold from 672 metres in hole 42.

On Dec. 31, Rubicon had working capital of $22.3 million and 10.7 million warrants outstanding, with an exercise price of $1.50, that expire on May 21. In March, the company closed a $40-million private placement.

The company has 181.4 million shares outstanding, or 199.2 million shares fully diluted. Rubicon shares set a new 52-week high of $2.14 on the news, settling at around $2 at presstime.