Rambler Metals & Mining Plc

Rambler Metals & Mining Plc

October 01, 2010 08:58 ET

Rambler Metals and Mining PLC: NI43-101 Technical Report Filed and Project Update

LONDON, ENGLAND and BAIE VERTE, NEWFOUNDLAND AND LABRADOR--(Marketwire - Oct. 1, 2010) - Rambler Metals and Mining plc (TSX VENTURE:RAB)(AIM:RMM) ('Rambler' or the 'Company') is pleased to announce that it has filed the NI43-101 Technical Report with respect to the Feasibility Study as per the news release "Final Feasibility Study released for the Ming Copper Gold Project" dated 26 August, 2010. The report has been filed on SEDAR: www.sedar.com and is available on the Company's website: www.ramblermines.com

Highlights of the Feasibility Study

Highlights of the Feasibility below are based on an average copper price of $3.00 per lb, gold $1,000 per ounce and silver $14.50 per ounce.

  • An initial 6-year mine life at 630 tonnes per day ("tpd").
  • Initial capital costs of $25.5 million, including 15% contingency.
  • Sustaining capital costs of $27.9 million during the life of the mine.
  • Pre-tax operating cash flow of $71.0 million, Net Present Value ("NPV") 6% of $14.3 million, payback 1.5 years and Internal Rate of Return ("IRR") of 23.7%.
  • Average annual production of 7.7 million lbs of copper, 11,600 ounces of gold and 42,600 ounces of silver.
  • Targeting production in H2 2011.

Project Update

Rambler is also pleased to announce the start of construction on two key areas of the project. The shaft rehabilitation has been awarded to Thyssen Mining, a leading mining contractor in Canada and the US. The shaft rehabilitation is expected to be complete by 1Q 2011 and will provide a second means of egress in and out of the Ming Mine. Foundation work for the copper flotation building has also started and has been awarded to Johnson's Construction, a local Newfoundland contractor. The foundation work is expected to be completed by year end 2010 whereupon erection of the building followed by installation of the equipment will commence in early 2011. The completion of the copper flotation building and circuit is scheduled for H2 2011, pre-production at the mine will be scheduled to provide ore for this anticipated start date.

Following the publication of a positive Feasibility Study the Company has begun procuring various pieces of underground mobile equipment from Atlas Copco, a world leader in underground mining equipment. The first equipment will begin arriving at site in October 2010.

In light of Rambler's decision to move the Ming Mine into production in 2011 the Company has now embarked on a hiring campaign to strengthen its existing team. The Company currently employs over forty personnel between the mine and mill sites; while at full production will directly employ over one hundred and thirty local staff.

The Company is also pleased to announce that it's financing partner, Sandstorm Resources Ltd. (TSX VENTURE:SSL) has accepted the Feasibility Study and under the terms of the gold sale agreement has released the second tranche of funding, US$2 million. The third and final tranche of funding is expected before year end once the project is fully approved and permitted by government officials.

Lastly, with the filing of the NI43-101 Technical Report the Company will now focus on submitting its Development Plan for the entire project to the Provincial Department of Natural Resources and Department of Environment. The acceptance of which will provide Rambler with its last remaining permits for the Ming Mine and the port facilities. The Company anticipates having these permits awarded prior to year end 2010.

Peter Mercer, VP Corporate Development commented:

"It is exciting to see our project now moving from an exploration and evaluation story into a development and production reality. The Feasibility Study confirms previous work and our belief that the Ming Mine is a robust and profitable venture. It is with credit to the hard work and dedication of our employees that we now focus our attention on the construction of the mine and procurement of equipment to continue the advancement of this successful project."

Mr. 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.

About Rambler

Rambler Metals and Mining is Junior Mining Company that has 100% ownership of the Ming Copper-Gold Mine in Baie Verte, Newfoundland and Labrador, Canada. Our objective is to become a mid-tier mining company by bringing the Ming Mine into production, discovering new deposits and through M&A's. Following the acquisition of the Ming Mine, Rambler, listed on the London AIM in 2005 and Toronto TSX-V in 2007.

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 Rambler's portfolio. Rambler now owns a 100% interest in the property.

The area where the mine is located is a former mining centre and subsequently good infrastructure exists including roads, fresh water, hydro, access to a working port while the town of Baie Verte, population 1,300 is located 17km away.

Over the last several years Rambler has been exploring on the property leading to the publication of three NI43-101 resource statements and a newly published reserve statement, the discovery of mineralized lenses and the extension of pre-existing mineralized lenses. Today all mineralized lenses remain open in multiple directions while, importantly, the deposit has not been cut-off at depth. The underground workings have been dewatered and services including air, water and electrical re-installed.

In October 2009, Rambler purchased an operational gold hydrometallurgical mill, Nugget Pond, which is situated approximately 40km from the Ming Mine. Rambler intends to expand the mill so that it is capable of handling massive sulphides from the Ming Mine and produce a copper concentrate with gold and silver as by-products. By utilizing the hydrometallurgical facility, in conjunction with the concentrator, the company anticipates increased gold recovery as well as recovering any free gold.

Following the successful publication of a positive Feasibility Study Rambler has now entered the construction phase of the project and expects to bring the Ming Mine back into production in 2011.

Forward Looking Statement

Some of the statements contained herein may be forward-looking statement, which involve known and unknown risks and uncertainties. Without limitation, statements regarding future plans and objectives of the Company are forward looking statements that involve various degrees of risk. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements.

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
    Rambler Metals & Mining Plc
    Leslie Little
    Company Secretary
    +44 (0) 14-8341-9942
    Seymour Pierce Limited
    Nandita Sahgal
    +44 (0) 20-7107-8000
    Pelham Bell Pottinger
    Charles Vivian / Klara Kazcmarek
    +44 (0) 20-7861-3232
    Ocean Equities Limited
    Guy Wilkes
    +44 (0) 20-7786-4370