This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Rubicon Minerals Drops on Deposit Fears

VANCOUVER, British Columbia ( TheStreet) -- The development-stage gold miner Rubicon Minerals (RBY) spooked investors Monday morning when it announced that Canadian securities regulators had asked the company to amend a technical report that describes its most important project.

The report, filed with the British Columbia Securities Commission, is intended to provide geologic data in support of the estimated reserves and ore grades that companies say their deposits contain.

Rubicon offered no further information in its press release. The uncertainty fueled speculation that Rubicon may have to cut back previous estimates on the amount of metal contained in the deposit, called the Phoenix Gold Project, in western Ontario. Rubicon has said that it wants to begin production at the mine by the fourth-quarter of 2012.

In November, Rubicon said the Phoenix deposit contains as much as 4 million ounces of gold, based on the conclusions of Peter George, an independent geological consultant hired by the company to study the deposit. In its press release on Monday, the company said it would "make a timely announcement if any material changes to the estimates result from an amended report."

"We presume that the stock drop is as result of the news today, and we hope to clarify that in due course," Bill Cavalluzzo, Rubicon's vice president of investor relations, told TheStreet Monday afternoon.

The BC securities commission, in reviewing the report, must address its questions directly to the consultant, Cavalluzzo said. For that reason, he couldn't "put a timeline" on when Rubicon would be able to announce the results of the amended report.

Mining experts say that on most occasions, the amendments requested by regulators amount to relatively trivial checklist items, rather than wholesale revisions to reserve estimates.

Meanwhile, Rubicon shares were declining sharply Monday afternoon, trading recently at $5.07, down 9.3%. Volume reached nearly 4.7 million shares, more than double the daily average.

-- Written by Scott Eden in New York

>To contact the writer of this article, click here: Scott Eden.

>To follow the writer on Twitter, go to http://twitter.com/ScottEden.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
RBY $1.13 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs