Blackmont Initiates Coverage on RBY

ELDON BROWN, Stonecap Securities (12/21/2009)
"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."

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