* Issues initial estimate for Phoenix project
* Shares rise to record high of C$6.18 on TSX (Adds analyst comment, share price move)
TORONTO, Nov 29 (Reuters) - Rubicon Minerals Corp (RMX.TO) outlined an initial inferred gold resource estimate of 4 million ounces at its Phoenix gold project in Red Lake, Ontario, on Monday, sending its shares up to a record high.
The news sent Rubicon's shares soaring more than 34 percent to a high of C$6.18 on the Toronto Stock Exchange, however they later retreated to C$5.85, for a gain of 27 percent.
The deposit is located in close proximity to Goldcorp's (G.TO) Red Lake mine in northwestern Ontario. Red Lake, Canada's largest gold mine, has consistently produced more than 600,000 ounces of gold annually over the last three years.
Rubicon also said that it believes its F2 gold system, a part of its Phoenix project, has the geological potential to host between 13.3 million and 16.1 million ounces of gold.
However, at least one analyst was skeptical and cautioned that the company's projections might be a bit optimistic at this juncture.
"We agree with the company's contention that potential exists to increase the size of the resource. However, we take some issue with their reported potential ounces," said Paul Burchell of Dundee Capital Markets.
Burchell also outlined some concerns with the method used by Rubicon's consultants in calculating the size of the resource.
The brokerage firm cut its rating on Rubicon to "neutral" from "buy," but raised its price target on the shares to C$6.40 from C$6.
$1=$1.02 Canadian Reporting by Euan Rocha in Toronto and Isheeta Sanghi in Bangalore; editing by Rob Wilson