Rubicon Minerals Corp. (TSE:RMX)(MKT:RBY) reported on Monday that Agnico-Eagle Mines Limited (TSE:AEM) sold a “significant” portion of its shareholdings in the company in the public markets.
Rubicon said it was advised that Agnico-Eagle plans to make
securities regulatory filings explaining details of the disposition in
In July last year, Agnico-Eagle made a C$70 million strategic investment in Rubicon Minerals
and had also entered into a technical services agreement to help
advance the Phoenix deposit. It paid $3.23 per share for about 21.7
Last month, Rubicon released an update on exploration activities at
its F2 Gold system, part of the Phoenix gold project in Red Lake,
The company is carrying out a 12-month, $82.8 million program
designed to optimize certain aspects of its preliminary economic
assessment, accelerate site infrastructure and expand on current
Last June, Rubicon received the results of the PEA on its F2 Gold
System indicating a cash cost as low as US$214 per tonne of processed
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 a production rate of 1,250 tonnes
Rubicon said in mid-May there were 32,000 metres planned to be
drilled by the end of the third quarter of 2012, with room to expand
this should results warrant.
Recent highlights from the West Limb Basalt 2 (WLB2) zone revealed
152.4 g/t gold over 1.5 metres, including 437.8 g/t gold over 0.5 metres
in hole 305-03-167. New assay highlights from the Crown Zone include
4.7 g/t gold over 16.4 metres in CZD-2012-04.
According to the AMC study, the F2 System is expected to 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
Using a gold price of $1,500 per ounce, net present value, using the
same discount rate, would jump to $933 million, while the pre-tax
internal rate of return would climb to a whopping 48 percent.
Rubicon controls over 100 square miles of prime exploration ground in the prolific Red Lake gold district which hosts Goldcorp's (TSE:G) high-grade Red Lake Mine.
In February, the company closed a $200.9 million bought deal equity
financing, the bulk of which went toward advancing its Phoenix gold