It has been a busy year at the Rubicon Mineral’s Phoenix Gold Project President and CEO David Adamson told those gathered for an update on the company’s progress centralized around the previous McFinlay mine site. Hosting an annual information session aimed at educating district residents on the project that the company says is on track for production in 2013 Adamson told those gathered the project is still $200 million and a series of regulatory approvals away from meeting their target.
“We have three permits that are outstanding but we are cautiously optimistic of getting those in the near future,” said Adamson on December 7, 2011. “The only thing we are missing which is not trivial is the money to get us there. The amount of money we are looking for is in and around a little over the $200 million mark. That is something for us that we think is achievable…it is less than we have raised over the last 18 months to 2 years to get here.”
According to the corporate presentation the project continues to be in the development phase with a current 12 month budget of $55 million and is carrying no debt of which Adamson says, “small highgrade projects like Red Lake allow us the possibility of not having to take on debt to put it into production so that is one of our key objectives.”
On December 2, 2011 the company announced it had reached a key milestone that green lighted further development and construction when the Production Closure Plan was approved by the Ministry of Northern Development and Mines.
Providing an update on site work Adamson said “We now have that shaft down to 310 metres and that shaft by the end of the current budget cycle will be down 610 metres. It is designed to give us the three to five years of potential production which we are trying to capture with the shaft extension. The shaft already being there was a huge advantage for us because these things have to be explored from underground and have to be drilled from underground and basically we are two or three years ahead of where we would have been had that shaft not been there.” Seventy per cent of the company’s drilling is now reportedly happening underground.
Electricity has now reached the site as a 5.3 megawatt power system has been operational for the last few months, however, the representative says the group continues to explore various initiatives to bring the amount of power required for production, over seven megawatts, out to the current site.
Representatives also note that work continues in the planning of further infrastructure projects such as a milling operation and moving the current access road to divert traffic from Cochenour.
Wrapping up the hour long presentation Adamson reiterated the company’s commitment to the community and announced a fixed donation fund which will be handled by Regional Manager Terry Bursey and is expected to grow as the mine site becomes revenue generating. “Community is important for us,” stated Adamson. “We don’t have revenue yet but when we do I think we will try to look at some of the positive things Goldcorp does in the community and the amount of money they earmark for the community and try to at least equal that as we go forward.”