RBY Reaches All-Time Highs

September 28, 2009


Shares of Rubicon Minerals (RBY) have lifted over 500% since our buy alert last year and recently closed at an all-time high of $ 4.45, up over 10% since our last commentary. During such time, the company released great news including a possible southwestern extension of the F2 zone at its Phoenix Gold project as well as being listed on the S&P/TSX Global Mining Index. Moreover, analysts have recently increased coverage of RBY and are increasingly bullish:

"With the intersection of a substantial zone of high-grade gold mineralization in hole 122-10, the company appears to have identified a new F2-like zone of structurally controlled mineralization."

- Canaccord Adams on 9/15



The discovery of a potential new high-grade gold structure adjacent to the core F2 Zone... further demonstrates the projects substantial exploration potential...these results highlight the accelerated pace of drilling results to the market...our 12-month target price rises to $6.00 per share (from $5.00). We maintain our Speculative BUY recommendation."

- Daniel Earle, TD Newcrest on 9/15


"Hole 122-10 is a significant step for RMX (Rubicon TSX symbol) in identifying look-a-like structures to the F2 Zone. BMO Research expects that RMX will focus drilling on this area and beginning delineating the dimensions of this new zone."

- Andrew Kaip, BMO Capital Markets on 9/15


"...the intersection in hole 122-10 is exceptional, with a particularly wide gold-bearing interval....deeper than most of the higher-grade intersections reported to date. This opens up a target area of high-grade potential for further drilling."

- Timothy Lee, Dundee Securities on 9/14


"...we are moving our target price from C$4.30 to C$5.00. In our opinion, the summer drill campaign will in all probability continue to establish that the F2 Zone is in fact materially larger than what we previously believed (1.5 million ounces)...We continue to recommend RMX as a BUY, and believe that RMX's discovery is in the early stages of being defined."

- Barry Alan, Research Capital on 9/14


"As the shaft continues to be deepened simultaneously with underground and surface drilling, we expect ongoing positive results from all nine areas of the 9x drill program. Thus far, four areas remain largely unexplored, and opportunity remains for the strike to extend beyond the existing boundary of the 9x areas (1,200m length) to the SW and NE."

- Andrew Mikitchook, Thomas Weisel on 8/31


"...Rubicon's resource will wind up being a lot more than 3 million ounces. Deposits at Red Lake wind up growing consistently over time...Rubicon probably has 5 million ounces or more in their F2 property which would support a price in the $5 plus range in the next two years..."

- Brian D. Pacampara, Motley Fool on 8/27


"we could see a 3.0–8.0m oz deposit in the F2 Zone. Valuing contained ounces at $200–250/oz, we arrive at a range of potential share prices, of C$3.60–12.10 (C$3.65-11.80 fully diluted)."

- Graham Copley, Macquarie Research on 8/18





Reply to Post >>