Battle North Gold Corp. (fka BNAUF)

[bell345]

http://www.stockhouse.com/news/newswire/2016/01/12/rubicon-minerals-t-rmx-down-another-40-after-devastating-indicated-resource-drop

Another 40% down Tuesday, after shedding 63% the day before; that’s the week Rubicon Minerals (TSX:RMX, Forum) CEO and President Michael Winship is experiencing, and investors still clinging to their stock are yelling loudly about it.

Rubicon announced the results yesterday of a restated resource estimate after a work stoppage and layoff of 87% of their workforce back in November, when management realized the underground play was more complex than previously thought. SRK began the work of looking deeper at the formation, and the news was bad.

SRK, known for being conservative in their geo estimates, went in with a hammer and knocked 80% off the inferred resource numbers and 88% off the indicated side, leaving the project in tatters and leaving management no option but to commence a strategic review process.

Rubicon was once a high flyer on the Candian junior mining scene, but erred in developing the Phoenix gold play, which it initially thought held 3.3 million oz of gold ore. The restated numbers show a mere 413k oz.

Central to the issues at hand is the fact that Rubicon developed a mine without doing a feasibility study, raising $700 million to do so.

The company says it has some $22.4 million cash on hand, and there is still at least some gold in the property which could well be expanded with more drilling, but it also has $65 million in debt, with $50 million of that owed to the Canada Pension Plan Investment Board, which is likely to have final say on what happens to the project.

Today’s sell-off leaves the company with an $11.8 million market cap, which may still be over-valuing the project.

The Rubicon bullboard has been the busiest bullboard on the Stockhouse website over the last two days, and will likely continue to be in the absence of more news from management.

--Chris Parry
http://www.twitter.com/chrisparry
Read more at http://www.stockhouse.com/news/newswire/2016/01/12/rubicon-minerals-t-rmx-down-another-40-after-devastating-indicated-resource-drop#hFdjguiSHALAbQg7.99