“I believe in the exploration potential of the Phoenix Gold Project and the Company's large land packages in Red Lake, Nevada and Utah. My vision is to systematically diamond drill, drift, sample, test mine in the main mineralized zone, and analyze the F2 Gold Deposit until we have a strong understanding of the geology hosting the gold mineralization before embarking on a new NI 43-101 mineral resource estimate. Over the long-term, our objective is to evolve into a company that is profitable and provides a healthy return on capital to our investors, in a measured and conservative manner.”
George Ogilvie, P.Eng.
President, CEO and Director
2017 Exploration Program
The 2017 Exploration Program at the Phoenix Gold Project consists of the following components:
- Re-logging of approximately 10,000 metres ("m") of core from historical drilling: core samples from previous drilling were mainly logged for grade and lithology. However, the geological model prepared in January 2016 highlighted the complexity of geological structural controls on the distribution of the gold mineralization. According to the interpretation of the current geological model, the east-west (mine grid) trending cross-cutting shear structures ("D2 structures") appear to control the distribution of high-grade mineralization, which were not adequately interpreted in previous geological models. Rubicon intends to re-log historical core to better understand the structural geology and the relationship of these D2 structures relative to the high-grade gold mineralization. Update (March 13, 2017): Rubicon has re-logged approximately 1,000 m of core to-date.
- 3,500 m of drilling from the 244- and 305-metre levels (commencing in March 2017): As most of the drilling of the F2 Gold Deposit was orientated in an east-west (mine grid) direction, the influence of the D2 structures (which run near parallel to the drill orientation) has not been captured. The Company plans to conduct 3,500 m of orientated drilling in a north-south (mine grid) direction to gain further knowledge of these D2 structures and update the geological model.
- 20,000 m of drilling from the 610-metre level (commencing second quarter 2017): Rubicon intends to follow up on widely-spaced, high-grade intercepts from historical drilling of the F2 Gold Deposit with infill and step-out orientated diamond drilling. The drilling will cover the area between the 366- and 854-metre levels. The Company believes that the data collected from these areas could positively impact the classification of mineral resources in the Measured and Indicated categories in an updated mineral resource estimate.
- Engagement of a primary external consultant (completed): Rubicon plans to engage an external consultant at the beginning and throughout the exploration program to assist with the interpretation of the structural geology and the eventual formulation of an updated mineral resource estimate. Update (February 8, 2017): Rubicon has hired Golder Associates Inc. as its primary external consultant. The Company has also retained T. Maunula & Associates Consulting Inc. to provide a peer review of the exploration work programs that will be undertaken over the next 18-to-24 months.
- Development into the main mineralized zone: While undertaking clean up and infrastructure upgrades underground, the Company anticipates drifting into the main zone of the F2 Gold Deposit, between the 305- and 366-metre levels, to gather more information for geological mapping and sampling purposes.
2018 Exploration Program
The 2018 Exploration Program at the Phoenix Gold Project consists of the following components:
- Trial mining (mid-2018): the Company plans to conduct limited trial mining in the main zone of the F2 Gold Deposit, between the 244- and 305-metre levels. This will allow Rubicon to gather more information for geological mapping, sampling purposes, evaluation of mining techniques and reconciliation to the mineral resource block model.
- Updated mineral resource estimate and feasibility study decision (second half 2018): Rubicon anticipates providing an updated mineral resource estimate in the second half of 2018, in addition to making a decision to move ahead with a feasibility study for the Project. The updated mineral resource estimate (and potential feasibility study) will be evaluated by a peer group of external consultants prior to completion.