Phoenix mine to produce first gold in 2014, capital cost to rise
JOHANNESBURG (miningweekly.com) – TSX- and NYSE-listed Rubicon Minerals on Monday said it expected first production from its Phoenix gold project, in Canada, in the second half of 2014, but warned that, owing to possible new efficiency methods, its initial capital cost would likely exceed the budgeted $214-million.
The company was evaluating, besides others, an increase in throughput at an average rate higher than the originally specified 1 250 t/d rate to boost output.
Management planned to evaluate financing alternatives upon the completion of the studies to mitigate any potential increase in the project’s capital cost.
"Our objective is to optimise the Phoenix gold project and [we] have made senior management changes to strengthen our project team," Rubicon president and CEO Mike Lalonde said in a statement.
Rubicon planned to complete and release the summary of its updated mineral resource at the end of the first quarter and the report would include data from over 100 000 m of core drilling, he added.
Meanwhile, the company said it continued to make good progress with the sinking of the shaft, having reached 610 m below surface. Contractor crews were currently excavating the 610 m level station.
Shaft sinking continued, with the company expecting improved development rates.
Further, the mill carbon-in-leach building foundation and erection of the steel framework had been completed, with construction of the remaining mill building foundation continuing and due for completion in the latter part of 2014.
As of December 31, Rubicon had some $171-million in cash, cash equivalents and investments, as well as about $157-million in working capital.
Around $85-million had been spent on the project to date.
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