Rubicon minerals has temporarily laid off 87 per cent of its company and suspended underground activity on its Phoenix Gold Project.
The company says it still believes in the project near Red Lake but its more geologically complex than Rubcion thought it would be.
"Similar to other high-grade, narrow-vein, underground gold deposits, the geology can be quite challenging and requires additional analysis to be fully understood," interim president and CEO Michael Winship said in a media release.
Around 200 employees and 110 contractors will be temporarily laid off while the company looks to enhance its geological model.
The full media release can be read here.
