UPDATE 2-Rubicon outlines 4 mln oz gold resource; shares up

* Issues initial estimate for Phoenix project

* Shares rise to record high of C$6.18 on TSX
(Adds analyst comment, share price move)

TORONTO, Nov 29 (BestGrowthStock) – Rubicon Minerals Corp (RMX.TO: )
outlined an initial inferred gold resource estimate of 4
million ounces at its Phoenix gold project in Red Lake,
Ontario, on Monday, sending its shares up to a record high.

The news sent Rubicon’s shares soaring more than 34 percent
to a high of C$6.18 on the Toronto Stock Exchange, however they
later retreated to C$5.85, for a gain of 27 percent.

The deposit is located in close proximity to Goldcorp’s
(G.TO: ) Red Lake mine in northwestern Ontario. Red Lake,
Canada’s largest gold mine, has consistently produced more than
600,000 ounces of gold annually over the last three years.

Rubicon also said that it believes its F2 gold system, a
part of its Phoenix project, has the geological potential to
host between 13.3 million and 16.1 million ounces of gold.

However, at least one analyst was skeptical and cautioned
that the company’s projections might be a bit optimistic at
this juncture.

“We agree with the company’s contention that potential
exists to increase the size of the resource. However, we take
some issue with their reported potential ounces,” said Paul
Burchell of Dundee Capital Markets.

Burchell also outlined some concerns with the method used
by Rubicon’s consultants in calculating the size of the
resource.

The brokerage firm cut its rating on Rubicon to “neutral”
from “buy,” but raised its price target on the shares to C$6.40
from C$6.

($1=$1.02 Canadian)
(Reporting by Euan Rocha in Toronto and Isheeta Sanghi in
Bangalore; editing by Rob Wilson)

UPDATE 2-Rubicon outlines 4 mln oz gold resource; shares up