Rubicon Minerals announced positive results from a new preliminary economic assessment (PEA) and an updated estimate for its gold project near Red Lake in northwestern Ontario.
The assessment centres on the company's F2 Gold System, which comprises part of Rubicon's main Phoenix gold project.
Among the highlights of the report is an increased indicated mineral resources by 111 per cent to 1.129 million ounces of gold with an inferred mineral resources of 2.219 million ounces.
Rubicon's estimates a mine will produce 2.19 million ounces over a 13-year life.
New mining methods are being considered to improve the potential operation's efficiency and productivity but it will increase the project's capital development costs. The company has $118 million in working capital but is short $106 million and is in negotiations with third parties to secure non-equity funding.
The company has entered into financial advisory agreements with two investment banking firms to assist in the evaluation of funding alternatives.
"My primary objective when I took the leadership role at Rubicon was, and remains, building our flagship Phoenix Gold Project to be the best that it can be," said company president Michael Lalonde in a statement.
