Toronto-based Rubicon Minerals Corp. started a feasibility study for its Phoenix gold project in Ontario after reporting a 38% yearly increase in contained gold resources at the property's F2 gold zone.

The National Instrument 43-101-compliant estimate outlined 811,000 ounces of gold contained within 3.9 million tonnes of measured and indicated resources grading 6.45 g/t gold, at a 3.0-g/t gold cutoff grade.

The company attributed the increase to its 2019 infill drilling campaign, which aimed to improve resource confidence above the 976-meter level.

Due to the upgrade of resources to the measured and indicated categories, inferred gold resources dropped 14% to 464,000 ounces contained within 2.1 Mt grading 6.97 g/t gold.

Rubicon said Jan. 7 that it expects to complete the feasibility study in the second half.

An August 2019 preliminary economic assessment for Phoenix generated a posttax net present value, discounted at 5%, of C$135.2 million and a 40.2% internal rate of return with a 3.9-year payback period.