Last week, Rubicon Minerals (RBY) announced more impressive drill results at its Phoenix Gold project at Red Lake, ON. The team intercepted high-grade gold measuring 3 to 457 g/t. Although some prior drill holes uncovered higher gold grades, Daniel Earl of TD Newcrest calls this latest discovery, “…one of the deepest high-grade hits to date in the F2 Zone.”
This could be one of the most significant hits since the program began. Rubicon CEO, David Adamson, noted the “important extensions to the depth potential and strike length potential of the F2 gold system…The system remains open in all directions and…extends the F2 system beyond our current 9X target areas.”
Some analysts believe that the F2 gold zone is considerably larger than anyone previously imagined. For instance, analysts at Macquarie Captial Markets said the results “increase our assumed volume of the mineralized envelope by well over 75%…”
In our opinion Rubicon’s latest results show an absolute minimum resource of 5 million ounces of gold at Phoenix Gold; however, estimates are more likely to be well above 6 million ounces. Consistent with past discoveries of similar significance, Rubicon announced another share offering–this time to raise $75 M in capital. Bear in mind that the company will use the proceeds to step up the drilling program, but most importantly, Rubicon now has more institutional support than ever.
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