Phoenix Gold Project

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TSX:RMX | NYSE.MKT:RBY


TORONTO, Jan. 28, 2013 /PRNewswire/ - Rubicon Minerals Corporation (TSX: RMX | NYSE-MKT: RBY) ("Rubicon" or the "Company") provides an update on the construction and development of the Phoenix
Gold Project.


Phoenix Gold Project Development1


Shaft Sinking


The Company continues to make good progress with the sinking of the
shaft. As of today, the shaft bottom is at 610 metres ("m") below surface. Contractor crews are currently excavating the 610 m
level station. During November and December of 2012, the Company
encountered unfavourable ground conditions that impacted the rate of
development. Ground conditions have improved significantly in January
2013. Shaft sinking continues and the Company expects better
development rates going forward. The Company continues to evaluate the
economics of the shaft extension and its use for further resource
identification.


Mill and Carbon-in-Leach ("CIL") Plant Construction


The mill CIL building foundation has been completed, as well as the
erection of the steel framework. The Company continues construction of
the remaining mill building foundation. Subject to the Company's
ongoing progress and evaluation of the construction and development of
the Phoenix Gold Project, the delivery of long lead time items, such as
the "SAG" (semi-autogenous grinding) and ball mills, remain on
schedule, consistent with the Company's current proposed timeline. The
selection and procurement of the processing equipment is ongoing. The
Company plans to complete the mill construction in the second quarter
of 20141.


Updated Mineral Resource


Rubicon plans to complete and release the summary of its updated mineral
resource at the end of the first quarter of this year. The report will
include data from over 100,000 m of core drilling since late 2011.


Optimization of the PEA2


The Company continues to prepare and review studies on the optimization
of the existing preliminary economic assessment ("PEA")2 released in August 2011. The purpose is to evaluate different mining
scenarios to refine and improve the currently proposed mining plan and
economics. These scenarios are sensitive to the updated mineral
resource estimate, and the current economic climate. There are several
key areas in the PEA2 where the Company is looking to optimize:



Mining method: The Company is considering the longhole stoping mining ("longhole") method instead of, or to supplement, the cut-and-fill method. The
Company believes that the longhole method is more productive, can lower
operating cost, and is not meaningfully dilutive to the mined grade.
The longhole method uses more mechanized equipment, which could add to
the capital requirements.




Infrastructure and development layout: Rubicon is considering increasing the vertical interval between the
main levels to 120 m (as compared to 60 m in the PEA2) and developing a ramp to interconnect the levels. The Company believes
this different layout allows for efficient movement of equipment,
material, and personnel between levels. The Company also believes that
the capital cost savings from developing fewer levels will partially
offset the capital cost of the ramp.




Equipment: The Company is assessing the use of modern "LHD" (load haul dump)
loaders and haulage trucks, using a combination of diesel-fueled and
battery-operated units. Rubicon believes using mechanized equipment
versus rail-mounted cars and mucking machines is more productive and
provides flexibility. Furthermore, battery-operated LHD loaders and
trucks do not produce emissions, are cleaner for the environment, and
reduce capital costs for ventilation infrastructure. The gold-bearing
material would be transferred between levels by gravity through
internal ore passes.




Throughput: The Company is evaluating an increase in throughput at an average rate
higher than the 1,250 "tpd" (tonnes per day) rate in order to increase
the output in ounces.




Shaft depth: Rubicon is extending the depth of the shaft below 610 m for improved
access to more potential mining areas.




Exploration platform: The Company is assessing constructing deep, underground, exploration
platforms that allow step-out drilling below the 1,200 m depth with
shorter drill holes. This would allow the Company to follow up on
higher grade intercepts and potentially increase the mineral resource
at depth.






The Company has commissioned SRK Consulting ("SRK") to conduct the updated mineral resource estimate and optimization
studies.


"Our objective is to optimize the Phoenix Gold Project to make it the
best it can be," said Mike Lalonde, President and Chief Executive
Officer of Rubicon. "We recently made senior management changes to
strengthen our project team. The SRK group that will be involved on the
Phoenix Gold Project have been integral in the optimization and mine
planning of Goldcorp's Cochenour Project in Red Lake. They have
extensive experience working with narrow-vein, lode gold deposits. SRK
will add additional strength to complement the project team."


The optimization studies are scheduled to be completed in the second
quarter of this year. The Company believes that the new methods being
considered in the optimization studies will potentially improve the
efficiency and productivity of the Phoenix Gold project. However, the
implementation of the new methods would likely increase the initial
capital cost of developing the Phoenix Gold project compared to the
$214 million outlined in the PEA2. Rubicon is not able to provide an accurate estimate of the capital
cost increase for the Phoenix Gold Project prior to the completion of
these studies. Management plans to evaluate financing alternatives upon
the completion of the optimization studies, to address any potential
increase in the capital cost of the Phoenix Gold project.


Timeline to Potential Production


Based on achieving the current scheduled milestones, and subject to the
Company's ongoing progress and evaluation of the construction and
development of the Phoenix Gold Project, the timeline to potential
production would be the second half of 2014.


Cash Position


As of December 31, 2012, Rubicon has approximately $171 million in cash
and cash equivalents, and investments, and approximately $157 million
in working capital. Approximately $85 Million has been spent on the
project to date.


About Rubicon Minerals Corporation


Rubicon Minerals Corporation is an exploration and development company,
focused on responsible and environmentally sustainable development of
its Phoenix Gold Project in Red Lake, Ontario. Rubicon is well funded
and its flagship Phoenix Gold Project is fully permitted to potential
production. In addition, Rubicon controls over 100 square miles of
prime exploration ground in the prolific Red Lake gold district which
hosts Goldcorp's high-grade, world class Red Lake Mine. Rubicon's
shares are listed on the NYSE.MKT (RBY) and the TSX (RMX) Exchanges.
Rubicon's shares are included in the S&P/TSX Composite Index and Van
Eck's Junior Gold Miners ETF.




RUBICON MINERALS CORPORATION
"Mike Lalonde"
President and Chief Executive Officer




Notes
1 The Company continues to consider a number of factors in connection with
the ongoing progress and evaluation of the construction, development
and potential production of the Phoenix Gold Project, which will
include, when available, the results from the mineral resource update
and the ongoing optimization studies on the PEA2, as well as project financing opportunities and development timelines.


2 The PEA is preliminary in nature as it includes inferred mineral
resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be
categorized as mineral reserves and there is no certainty that the PEA
will be realized. Mineral resources that are not mineral reserves do
not have demonstrated economic viability. The estimate of mineral
resources may be materially affected by environmental, permitting,
legal, title, taxation, socio-political, marketing, or other relevant
issues. The quantity and grade of reported inferred resources referred
to in the PEA are uncertain in nature and there has been insufficient
exploration to define these inferred resources as an indicated or
measured mineral resource category. The PEA is a technical report under
NI 43-101, was prepared by AMC Mining Consultants with metallurgical
and processing contributions from Soutex Inc., and has an effective
date of August 8, 2011.


Qualified Person
Phoenix Gold Project site operations are conducted under the supervision
of Mike Lalonde, P.Eng., President & CEO for Rubicon and a Qualified
Person as defined by NI 43-101, who approved the contents of this
release.




Forward Looking Statements
This news release contains statements that constitute "forward-looking
statements" within the meaning of Section 21E of the United States
Securities Exchange Act of 1934 and "forward looking information"
within the meaning of applicable Canadian provincial securities
legislation (collectively, "forward-looking statements").
Forward-looking statements often, but not always, are identified by the
use of words such as "seek", "anticipate", "believe", "plan",
"estimate", "expect", "targeting", "look forward" and "intend" and
statements that an event or result "may", "will", "would", "should",
"could", or "might" occur or be achieved and other similar expressions.



Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made and represent
management's best judgment based on facts and assumptions that
management considers reasonable. The material assumptions upon which
such forward-looking statements are based include, among others; that
the aspects of the transition will progress on a satisfactory basis;
that the demand for gold and base metal deposits will develop as
anticipated; that the price of gold will remain at levels that will
render the Phoenix Gold Project economic; that operating and capital
plans will not be disrupted by issues such as mechanical failure,
unavailability of parts and supplies, labour disturbances, interruption
in transportation or utilities, or adverse weather conditions; that
Rubicon will meet its estimated timeline for the development of the
Phoenix Gold Project; that Rubicon will continue to have the ability to
attract and retain skilled staff; that the mineral resource estimate as
disclosed in the Preliminary Economic Assessment dated August 8, 2011
("PEA") will be realized; and that there are no material unanticipated
variations in the cost of energy or supplies, or in the pre-production
capital and operating cost estimate as disclosed in the PEA. Rubicon
makes no representation that reasonable business people in possession
of the same information would reach the same conclusions.


Forward-looking statements in this news release include, but are not
limited to statements regarding the timing of the release of the
updated mineral resource and the optimization studies, as well as the
timeline to potential production.


Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Rubicon to be materially different from
any future results, performance or achievements expressed or implied by
the forward-looking statements. Such factors include, among others:
future prices of gold and other metals; possible variations in
mineralization, grade or recovery rates; actual results of current
exploration activities; actual results of reclamation activities;
conclusions of future economic evaluations; changes in project
parameters as plans continue to be refined; failure of equipment or
processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; delays and other risks related to
joint venture operations; timing and receipt of regulatory approvals of
operations; the ability of Rubicon and other relevant parties to
satisfy regulatory requirements; the availability of financing for
proposed transactions and programs on reasonable terms; the ability of
third-party service providers to deliver services on reasonable terms
and in a timely manner; and delays in the completion of development or
construction activities. Other factors that could cause the actual
results to differ include market prices, results of exploration,
availability of capital and financing on acceptable terms, inability to
obtain required regulatory approvals, unanticipated difficulties or
costs in any rehabilitation which may be necessary, market conditions
and general business, economic, competitive, political and social
conditions.


Forward-looking statements contained herein are made as of the date of
this news release and Rubicon disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by applicable
securities laws. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements.


It is important to note that the information provided in the PEA is
preliminary in nature. There is no certainty that a potential mine will
be realized or that a production decision will be made. A mine
production decision that is made without a bankable feasibility study
carries additional potential risks which include, but are not limited
to, the inclusion of inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to
them that would enable them to be categorized as mineral reserves. Mine
design and mining schedules, metallurgical flow sheets and process
plant designs may require additional detailed work to ensure
satisfactory operational conditions.




The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release




SOURCE Rubicon Minerals Corporation



For further information: <p> </p> <p> Allan Candelario, Director of Investor Relations, Toll free: 1.866.365.4706<br/> E-mail: <a href="mailto:[email protected]">[email protected]</a> | <a href="> Rubicon Minerals Corporation | Suite 1540-800 West Pender Street | Vancouver BC, CANADA V6C 2V6 </p>