Rambler Metals & Mining Plc
TSX VENTURE : RAB
AIM : RMM

Rambler Metals & Mining Plc

January 26, 2010 07:00 ET

Rambler Metals & Mining PLC Investigates the Resource Potential at the Nugget Pond Gold Mine

LONDON, ENGLAND and BAIE VERTE, NEWFOUNDLAND AND LABRADOR--(Marketwire - Jan. 26, 2010) - Rambler Metals & Mining PLC (TSX VENTURE:RAB)(AIM:RMM) is pleased to announce that, following the recent purchase of the Nugget Pond gold facility, it will be investigating the resource potential within the 140L mining lease.

HIGHLIGHTS

  • Exploration target of 13,000 to 15,000 ounces of gold contained within 50,000 to 66,000 tonnes grading at 7 to 9 g/t gold.
  • Low capital development and operating costs.
  • Permitted mill and tailings impound.
  • Crown pillar amenable to open pit mining methods.

George Ogilvie, President and CEO commented,

"The possible uncovering of gold resources at Nugget Pond represents an exciting opportunity for Rambler. Over the coming months the Company will evaluate mining the crown pillar which will have minimal capital requirements and quick start-up. With an operating mill onsite and the present market price of gold Rambler considers Nugget Pond to be an asset of significant value that could provide some self funding opportunities towards our Project Financing."

The recent purchase of the Nugget Pond gold facility on the Baie Verte Peninsula, Northeastern Newfoundland (see Company press release October 27, 2009) has prompted the Company to evaluate the potential of any remaining resources within the 140L mining lease. Both the mine and the mill are located within the 100% owned Nugget Pond Property. The mill itself is currently under care and maintenance while the Company finalizes engineering design for the expansion of a copper floatation circuit.

The Nugget Pond Gold Mine began commercial production in April 1997 at a milling rate of 350 mtpd and was later optimized to 500 mtpd. After four years of profitable operations, production ceased in August 2001 due to depleting reserves and depressed gold prices. During operations the deposit produced a total of 168,748 ounces of gold from 487,765 tonnes of ore grading approximately 10.76 g/t. The facility surpassed all expectations by running continuously at 98% availability with an average recovery of 95%. Since its initial startup in 1997 the mill has seen ore from three other gold deposits with almost 1.5 million tonnes of ore processed over its life to date.

RESOURCE POTENTIAL

Upon review of the digital database compiled during the mines closure, Rambler has estimated an exploration target of 13,000 to 15,000 ounces of gold contained within 50,000 to 66,000 tonnes grading at 7 to 9 g/t gold. Rambler cautions that the estimated tonnes and grade are conceptual in nature and are based on previous diamond drilling results that defined the length, thickness, depth and grade of the original resource and reserve estimate. Since the initial closure of the mine limited exploration has been completed on the property and Rambler cautions that there is a risk that further exploration will not result in the delineation of a new resource.

The estimated tonnage remaining is contained within the Main Zones, the Crown Pillar and the Footwall Zone of the mine. The crown pillar itself contains between 5,000 and 10,000 tonnes of ore grading between 8 to 9 g/t Au. The pillar is easily accessible by way of the underground ramp, which is now flooded and would require minimal dewatering and rehabilitation, however the pillar is also amenable to open pit mining and further work evaluating this scenario is ongoing. The Footwall Zone, which contains the bulk of the estimated tonnages, requires additional delineation drilling. Exploration mining of the Footwall zone occurred on two levels in 2001 and defined at least 3 contrasting styles of gold mineralization. Unfortunately premature closing of the mine and a lack of understanding of controls on mineralization did not adequately define the strike and extent of the Footwall Zones.

Zone Tonnage Grade Classification
Crown Pillar 5,000 to 10,000 8 to 9 g/t Exploration Target
Main Zone 5,000 to 6,000 8 to 9 g/t Exploration Target
Footwall Zone 40,000 to 50,000 7 to 8 g/t Exploration Target

FUTURE PLANS

The exploration target at Nugget Pond is considered by Rambler to be highly prospective. With an operating mill onsite, the present market price of gold and the potential for underexplored resources, Rambler considers Nugget Pond to be an asset of significant value. Rambler intends to complete an engineering and resource study of the Nugget Pond gold deposit to evaluate the full potential of the property. The fact that the crown pillar is accessible from surface and sits within 100m of the mill and primary crusher should allow for a low capital cost investment, minimal operating costs and a quick start up.

Larry Pilgrim, P.Geo. is the Qualified Person responsible for the technical content of this release and has reviewed and approved it accordingly. Mr. Pilgrim is an independent consultant contracted by Rambler Metals and Mining plc.

All tonnes are dry metric tonnes.

Grade and tonnages reported are non-NI43-101 compliant and cannot be relied upon in anyway. Rambler cautions that there is a risk that further exploration will not result in the delineation of a new resource.

About the Company

Rambler was founded in 2004 when Altius Minerals Corporation ("Altius"), a Newfoundland and Labrador based resource company, contributed to the Company's asset base an option to acquire and develop the Rambler property.

The Ming property had been a former underground copper and gold producing mine that ceased production when the deposit reached a then third party property boundary. This neighbouring property was subsequently consolidated before being brought into the Company. The Company now owns a 100% interest in the property.

Recently, the purchase of the Nugget Pond milling facility has allowed the company to accelerate its plans to bring the former producing Ming mine back into production. The Nugget Pond mill has been in operation as recently as December 2009 and includes a fully permitted tailings impound.

The principal activity of the Group is carrying out development and exploration on the Ming Mine Property, a mineral exploration property located on Newfoundland and Labrador's Baie Verte Peninsula.

Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Rambler Metals and Mining Canada Limited
    George Ogilvie, P.Eng.
    President and CEO
    709-532-4990
    or
    Rambler Metals & Mining Plc
    Leslie Little
    Company Secretary
    +44 (0) 14-8341-9942
    www.ramblermines.com
    or
    Seymour Pierce Limited
    Nandita Sahgal
    +44 (0) 20-7107 8000
    or
    Pelham Bell Pottinger
    Chelsea Hayes/Klara Kaczmarek
    +44 (0) 20-7337-1523 /20-7337-1524
    or
    Ocean Equities Limited
    Guy Wilkes
    +44 (0) 20 786 4370