Rambler Metals & Mining Plc

Rambler Metals & Mining Plc

September 09, 2009 09:30 ET

Rambler Completes Negotiations for the Sale and Purchase of the Nugget Pond Processing Facility

LONDON, ENGLAND andBAIE VERTE, NEWFOUNDLAND AND LABRADOR--(Marketwire - Sept. 9, 2009) - RamblerMetals and Mining plc ('Rambler') (TSX VENTURE:RAB)(AIM:RMM) is pleased toannounce that it has signed a sale and purchase agreement with Crew GoldCorporation (TSX:CRU) (OSLO:CRU) (FRANKFURT:KNC) (OTCBB:CRUGF) ('Crew') for theNugget Pond gold processing facility (the 'Facility').

The gold millingfacility is located on the Baie Verte Peninsula in Newfoundland, just 40 km'sfrom Rambler's Ming Mine. The gold concentrator will be adapted to processbase metals sulphides from the Ming Mine through the addition of a copperflotation circuit as well as process the 'free gold' that exists in the Ramblergeological system. The modification will diversify the existing facility andallow for a range of processing capabilities. Crew Gold is currently undercontract to toll mill ore from the Pine Cove Gold Mine, which is owned byAnaconda Mining, until June 30, 2010. The expansion of the facility will notimpede this contract.

The purchase pricefor the facility is $3.5 M CDN. Crew Gold will be responsible for maintainingthe existing closure bond until such time that the toll milling contractexpires whereupon Rambler shall assume this responsibility. The closing datefor the purchase will take place within 90 days of the signed agreement andtherefore should close on or around December 9, 2009. Under the terms of theagreement Crew Gold will lease the processing facility from Rambler so that thetoll milling contract with Anaconda Mining can continue without interruption. During the leasing period Rambler will have full access to the site to completedetailed engineering on the expansion and eventual construction.

Rambler Metals andMining has recently compiled an internal business plan to develop the existingNI43-101 compliant resource at the Ming Mine. The section of the reportconcerning the underground operation is already at a feasibility level whilethe work on surface engineering, including the concentrator, is at a scopinglevel. With the acquisition of the Nugget Pond facility, the detailed surfaceengineering can now be completed allowing for a full compliant projectevaluation. Considering just the existing measured and indicated massivesulphide resources and an extraction rate of 850 mtpd approximately 7 years ofresources are currently available for processing. This has the potential toincrease, as all mineralized zones are open in multiple directions. The aboveplan also excludes the bulk tonnage lower footwall zone that the Companyintends to develop once it is in production. The internal business plan willform the basis of the full project evaluation which will be publicly releasedduring the first half of 2010.

George Ogilvie,President and CEO commented;

"Theacquisition of the Nugget Pond Mill Facility, a fully operational, permittedGold Hydrometallurgical mill, moves Rambler another step closer to productionand increases the attractiveness of the project. Our Engineering studies todate have shown that the add-on of a copper flotation circuit will be a simpleprocess and the newly expanded facility will also give Rambler the ability torecover the 'free gold' that exists in its own geological system. In additionthe facility provides Rambler with the option of processing other ore undertoll milling contracts. The acquisition greatly improves project economics andlooking forward I believe that copper and gold represent the two metals whichare likely to provide greatest returns for our shareholders."

Furtherinformation will be released to the market at the time of closing.

The Company wishesto clarify that it has a fixed Stock Option Plan whereby a maximum of 4,465,000options may be granted. In the Company's Information Circular datedOctober 29th, 2008 the Stock Option Plan was incorrectly referred toas a 10% rolling stock option plan with a maximum of 5,938,500 optionsauthorized when, in fact, the plan is a fixed plan with a maximum of 4,465,000.

About the Company

Theprincipal activity of the Company is to carry out development and explorationon the Ming Property, a mineral exploration property located on Newfoundlandand Labrador's Baie Verte Peninsula. The Company is committed to bringing theformer Ming Mine back into production.

TheMing property had been a former underground copper and gold producer thatceased production when the deposit reached a then third party propertyboundary. This neighbouring property was subsequently consolidated beforebeing brought into the Company. The Company now owns a 100% interest in theproperty.

Withthe impending acquisition of the Nugget Pond gold processing facility and itssubsequent modification Rambler will soon have the capability and flexibilityto process multiple ore types either from its own property or through tollmilling agreements. This diversification will create direct share holder valuewhile further reducing the risk of fluctuating commodity prices.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada 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


    Rambler Metals & Mining Plc
    Leslie Little
    Company Secretary
    +44 (0) 20-7661-8104


    Seymour Pierce Limited
    Nandita Sahgal
    +44 (0) 20-7107 8000


    Pelham Public Relations
    Chelsea Hayes
    +44 (0)20 7337 1523


    Pelham Public Relations
    Klara Kaczmarek
    +44 (0)20 7337 1524