Rubicon Minerals

Gold Explorer in Red Lake, Ontario

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Focused on aggressively exploring its flagship, 100% owned Pheonix project located in the heart of the Red Lake, Ontario gold district. The plan is to drill 110,000m in 2010, much of which from underground having already sunk a shaft to the 305m level. Bonanza grades abound, e.g. 0.5m of 92 ounces per ton. Production target of 2012. [David Zurbuchen] [June 12, 2010]

Dual-listed on the TSX and AMEX, Rubicon has been a market darling throughout 2009 as drilling continues to confirm the significance of the F2 discovery at Phoenix. This project is the real deal and looks like a multi-million ounce high grade discovery. The last financing, which closed in November 2009, was priced at C$4.55 and had no warrants attached. This raised C$86 million for the company, and together with money raised from warrant exercises the company currently boasts a treasury of over C$100 million. Rob McEwen also owns a 21.4% interest in the company, which shouldn't hurt as long as Hochschild doesn't become involved.

By no means is the company a bargain, with a market cap north of $600 million, but it wouldn't be unreasonable to see this one get bought out for north of $1 billion if the deposit continues to expand (especially the high grade portion). We'd perhaps be tempted to take a position if the price falls below the $3 level for no good reason. [David Zurbuchen] [June 12, 2010]