Rubicon Minerals Still Hot: Shares Hit Record of $5.04, Analysts Remain Bullish

December 31, 2009


Shares of Rubicon Minerals (RBY) hit fresh highs on Monday as gold prices showed signs of reversing a month-long downtrend. The record high of $5.04 roughly represents a 600% increase since our buy alert in late 2008. We remain rather bullish on Rubicon Minerals as the company continues to expand and define its high grade gold zone at prolific Red Lake, ON.

According to analysts, Rubicon's drilling program is still in it's early stages yielding significant potential for more high grade intercepts. However, analysts are somewhat divided on when we could get resource estimates. Until then, RBY is subject to increasing speculation which could drive its price considerably higher.

Analysts' Recent Comments on Rubicon and the Drilling Program

"We believe Rubicon has the opportunity to bring a low-cost gold mining operation into production at a comparatively lower capital cost by exploiting the higher-grade zones within its F2 deposit and by utilizing the existing infrastructure on the property. These characteristics should give the company the advantage to be able to do this independently, which in our opinion, would give Rubicon the ability to be more selective about its future opportunities, either as a producer or as an acquisition target.

While the F2 Zone looks to already host a potentially significant resource, in our opinion there is still exploration upside at depth and in delineating the higher-grade subzones. With its gold-plated address, Rubicon could be an acquisition target either to those already established in the Red Lake gold camp or those looking to establish a foothold. We are initiating coverage on Rubicon Minerals Corp. with an Outperform rating and target price of $5.75 per share based on a 1.75 times multiple to our 2009E NAV of $3.30 per share."

Eldon Brown, Blackmont Capital (12/21/09)

"As closer-spaced drilling enables delineation of the F2 Zone, an initial resource would be expected in 2H/10. Using Detour's price rise during its aggressive drilling period suggests Rubicon shares could trade to $7.00/sh."

Catherine Gignac, Sandfire Securities Inc. (12/17/09)

"RMX has drilled a sufficient number of holes to provide a more concrete understanding of the continuity of mineralization in the 122-10 Zone. Exploration at Phoenix remains at an early stage. Drilling is ongoing and Rubicon plans to begin a 158m drill program in 2010 to expand and further delineate the dimensions of known areas of gold-bearing zones."

Andrew Kaip, BMO Capital Markets (12/16/09)

"To date, 96,500 metres of drilling have been completed within the F2 system. In 2010, Rubicon is set to begin a significant 158,000 meter surface/underground drill program that is expected to take approximately 12 months to complete. We do not anticipate a resource estimate in 2010 at this time."

Daniel Earle, TD/Newcrest Securites (12/16/09)

Stay tuned as the largest phase of the Phoenix Gold project's drilling program is in full swing.