The future of Rubicon operations in Red Lake is unclear following the release of 2015 year-end financial statements.
Rubicon officials say they don’t have any intentions to proceed with an exploration program in the immediate future at its Phoenix gold project in Red Lake.
The company says the only thing that can happen now is desktop studies and preparing future exploration plans, noting an exploration program would require them to secure additional funding.
However, that’s unlikely as Rubicon has been found in breach of a loan condition to meet processing requirements of 875 tonnes per day over a period of 60-consecutive days.
Rubicon also suffered a setback in January when it had to cut the gold reserve estimate for the Phoenix mine by 86%.
A statement says the company continues to evaluate strategic options and talks with lenders will continue.
Rubicon posted a debt of $216.2-million as of December 31st.
Last November, the company suspended operations in Red Lake, impacting 330-workers.
