Mineral Resources

2019 Mineral Resource Estimate of the Phoenix Gold Project at 3.0 g/t Au Cut-Off Grade (Effective March 18, 2019)

 

Download the NI 43-101 Technical Report (PDF)

The 2019 Mineral Resource Estimate benefits from 551,811 m of core drilling in 1,631 drill holes. The 2019 Mineral Resource model covers a strike length of approximately 1,200 m and depths down to 1,403 m Level and remains open along strike and at depth. The 2019 Mineral Resource Estimate excludes the crown pillar and depleted resources from test trial mining.

2018 Mineral Resource Estimate at 3.0 grams per tonnes of gold (“g/t Au”) Cut-Off Grade  - Effective April 30, 2018

Resource Category Quantity
(000' tonnes)
Grade
(g/t Au)
Contained Ounces
Measured (M) 442 6.99 99,000
Indicated (I) 2,4856.13490,000
Total M + I2,9276.26589,000
Inferred 2,570 6.53 540,000

Effective date for this Mineral Resource is March 18, 2019
Mineral Resource Estimate uses a break-even economic cut-off grade of 3.0 g/t Au based on assumptions of a gold price of US$1,400 per ounce, an exchange rate of US$/C$0.77, mining cash costs  of C$97/t, processing costs of C$24/t, G&A of C$6/t, sustaining capital C$20/t, refining, transport and royalty costs of C$57/oz, and average gold recoverability of 95% 
Mineral Resource Estimate reported from within an envelope accounting for mineral continuity
Mineral Resources are not Mineral Reserves and do not demonstrate economic viability
There is no certainty that all or any part of this Mineral Resource will be converted into Mineral Reserve
All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly

The 2019 Mineral Resource Estimate should be read in conjunction with the tables and figures included in the body and presented at the end of the news release dated March 27, 2019. There is no certainty that the Measured and Indicated Mineral Resources will be converted to the Proven and Probable Mineral Reserve categories and there is no certainty that the updated Mineral Resource statement will be realized. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability; the estimate of Mineral Resources in the updated Mineral Resource statement may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

2019 Mineral Resource Estimate – Further Details

The 2019 Mineral Resource Estimate was evaluated using a geostatistical block modelling approach constrained by mineral and lithologic domains interpreted from the drill hole and mapping data. The block model grades were interpolated using inverse distance cubed (“ID3”), which the Company evaluated as the most representative method. Rubicon assessed other grade interpolation methodologies, including ordinary kriging (“OK”), and determined that the ID3 estimates controlled grade smoothing and achieved an appropriate grade-tonnage profile relative to the characteristics of the deposit. A nearest neighbour (NN) model was interpolated to support model validation. Density data was assigned based on average values for each lithologic unit.

The block model was classified in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves (May 2014). Drill spacing for Mineral Resources in the Measured, Indicated, and Inferred categories were approximately up to 20 m, 20-to-40 m, and 40-to-80 m centres, respectively, where geology and grade continuity were reasonably understood. Measured Resources required a minimum of a 20 m by 20 m drill spacing with sub-level development, mapping, chip samples and supported by reconciliation where available. Measured and Indicated Resources are all located near existing underground infrastructure and development. 

The block model was classified in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves (May 2014). Drill spacing for the Mineral Resources in the Measured, Indicated, and Inferred categories were approximately 20 m, 40 m, and 80 m centres, respectively, where geology and grade continuity were reasonably understood. Measured Resources are additionally supported with proximity to sub-level development, mapping, chip samples and supported by the bulk sample reconciliation data, where available. Measured and Indicated Resources are predominantly located near existing underground infrastructure and development.