JACQUES WORTMAN, GMP SECURITIES LTD. (03/05/2009)
We are resuming coverage of Rubicon today following a period of research restriction. The company just closed a financing whereby 25 mm shares were issued at a price of $1.60 per share for gross proceeds of $40.0 mm.

Resuming coverage with increased conceptual gold inventory of 2.02 mm oz for F2 zone:

• We believe RMX is well capitalized to further development at Phoenix post closing of $40 mm financing
• Conceptual estimate of contained gold inventory increases to 2.02 mm ozs from 1.16 mm ozs; strike length potential increases with recent drill results
• NAV increases to $1.89/sh from $1.25/sh on higher gold inventory estimate and post equity issue
• Maintain BUY rating, increasing 12-month target to $2.85/sh from $2.10/sh based on 1.5x multiple (down from 1.7x) to our conceptual NAV

We are encouraged that RMX has been able to demonstrate that high-grade mineralization extends in both directions along strike and that this potential still remains open. We believe the challenge now will be to both extend the mineralized envelope further and in-fill the outer dimensions identified and prove the zone at depth.

We are maintaining our BUY recommendation on Rubicon but have increased our 12-month target to $2.85 per share from $2.10 per share based on a 1.5x target NAV multiple. We have lowered this multiple from 1.7x as a component of the exploration upside has been moved directly into our NAV. We still believe that the exploration upside potential is very good.