Rubicon Minerals (TSE:RMX) (AMEX:RBY) said Wednesday it has received the final three permits for its Phoenix Gold project in the heart of the Red Lake Gold District in Ontario, with the company now fully permitted for future production from the property.
The news sent the company's shares up 2.1 percent this morning on the
Toronto Stock Exchange, to trade at $3.41 as of 11:04am ET.
Rubicon said it received from the Ontario Ministry of Environment the
amendments to the permit to take water, as well as retained the
industrial sewage certificate and the air certificate of approval
pertaining to the project.
With these final approvals in hand, and combined with its existing
closure plan, Rubicon is now fully permitted to develop, construct and
operate a potential mining and milling facility for the Phoenix
“This is another important milestone for the Phoenix Gold Project and for Rubicon," said president and CEO David Adamson in a statement.
"We have a high-grade gold project in a safe political jurisdiction,
we are funded to continue development as outlined in our Preliminary
Economic Assessment and now we are fully permitted.
"Starting with the discovery in 2008, this has all been achieved in four years."
Rubicon controls over 100 square miles of exploration ground in the prolific Red Lake gold district of Ontario, which hosts Goldcorp's (TSE:G) high-grade Red Lake Mine.
Last June, the company received results from a preliminary economic
assessment on its F2 Gold System, part of the Phoenix project, that
indicated cash costs as low as US$214 per tonne of processed material.
The report, prepared by AMC Mining Consultants, estimated the F2
System will produce 180,000 ounces of gold per year in the base case
scenario over a life of 12 years, with production rates of 1,250 tonnes
This, according to the study, would yield a net present value of $433
million, at a five percent discount rate, and a pre-tax 28 percent
internal rate of return, with a payback period of 3.3 years from the
start of production.
These base case results were calculated using a gold price of $1,100
per ounce, the company said, and increase when using a higher, spot gold
Late last month, Rubicon closed a $200.9 million bought deal equity financing, the bulk of which will go toward advancing its Phoenix Gold project.