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

Rambler Metals & Mining Plc

January 06, 2011 09:30 ET

Rambler Metals and Mining plc: Additional Permitting Received Allowing Further Draw Down of Sandstorm's Financing

LONDON, ENGLAND and BAIE VERTE, NEWFOUNDLAND and LABRADOR--(Marketwire - Jan. 6, 2011) - Rambler Metals and Mining plc ('Rambler' or the 'Company') (TSX VENTURE:RAB)(AIM:RMM) is pleased to announce that it has received further approval for construction at its Ming Copper Gold Mine Project on the Baie Verte Peninsula, Canada. The receipt of these permits will enable Rambler to begin partial draw down on the third and final tranche of financing of US$13 million from Sandstorm Resources Ltd. ('Sandstorm') (TSX VENTURE:SSL).

HIGHLIGHTS

  • Construction approval received for the office/dry facility and fresh water source at the Ming Mine. First comments also received on the complete Development Plan.

  • US$7 million received from Sandstorm on 4 January 2011. The remaining US$6 million due upon approval of final development plan expected in Q1 2011. As of 6 January, 2011 the company has CAD$8.4 million in cash and cash equivalents.

  • Nugget Pond foundation work on schedule with anticipated completion date of January 30th, 2011.

  • Installation of second means of egress via shaft is 100% complete.

  • Terms for all major underground equipment and components for new concentrator negotiated. Deliveries scheduled throughout Q1 and Q2 2011.

  • First exploration development to the top of 1807 zone completed. High grade copper and gold mineralization intersected.

  • New exploration development planned for the 1700 level historical wire gold zone.

Norman Williams, C.A., CFO, Rambler commented;

"These new permits along with the additional funds received from Sandstorm will allow the mine site capital infrastructure works to continue on schedule. Further, the entire project remains on schedule for first copper production in the second half of 2011. We remain bullish on the short to medium term prices for both copper and gold which will provide Rambler with significant free cash flow in the mines early years of production."

PROJECT UPDATE

The provincial Department of Natural Resources has approved the construction of the new office/dry facility which is necessary for the next hiring phase expected early in 2011. In addition to this approval Rambler has also received comments on the project's complete Development Plan submitted on September 30th, 2010. The Company is currently compiling the requested information and will respond with clarification over the coming weeks. Final release and approval for all remaining portions of the project is expected in Q1 2011. The project currently remains on schedule for first production in 2011.

With the approval of these construction permits Rambler has received a US$7 million partial drawdown of the remaining US$13 million tranche of financing from Sandstorm. The final US$6 million will be delivered in conjunction with the receipt of remaining permits for the project.

Since the official release of the feasibility study and subsequent early construction approval from the provincial government the Company has made great progress towards bringing this historic copper-gold mine back into production. Specifically the shaft man way is complete and the foundation work at the mill is proceeding on schedule with an anticipated completion date of January 30th, 2011.

Finally, several units of underground mobile equipment have also arrived including the mechanized bolter and production drill. All remaining underground equipment is scheduled to arrive throughout Q1 and Q2 2011.

EXPLORATION

Rambler is also happy to report that is has restarted the exploration program on the property. The program will particularly focus on three main components:

  1. Conversion of the 1.8 million tonnes of inferred resources into the measured or indicated categories.
  2. Further define the extents of known mineralization. A portion of the resources for this program will be used delineate the extents of 1700 level wire gold zone.
  3. Identify new zones and mineralization through the use of 3D modeling techniques.

Rambler is confident that once new diamond drill access is provided by pre-production development, new mineralization can be quickly added to the existing reserve-resource estimate.

The first exploration development program to the top of the 1807 Zone is now complete and has exposed a number of high grade mineralized lenses. All mineralization is chipped sampled daily with samples prepared and delivered to the lab for assaying. Below is a summary of two of the high grade mineralized zones intersected during this development program.

The table also includes assays from a massive sulphide zone reported from underground diamond drill hole RMUG10-168, completed in November 2010. This drill hole was designed to test the potential up-plunge extension of the 1700 level wire gold zone. Poor drilling angles prevent further testing from that level. A 0.50 meter assayed section from this massive sulphide zone returned 46.4 g/t Au.

Level
(metric)
Zone Length
(m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
Zn
(%)
             
338 level 1807 0.90 14.30 2.23 21.10 0.50
             
346 level 1805 1.00 3.70 6.33 59.45 2.45
             
RMUG10-168 Wire Gold 7.60* 2.13 4.47 21.14 2.42
    including   0.50* 5.70 46.40 26.10 0.60
           
* Length indicates core length; True width unknown.

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.

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, a newly published reserve statement, the discovery of new mineralized lenses and the extension of pre-existing lenses. Today all mineralization remains 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 in 2010 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
    George Ogilvie, P.Eng.
    President and CEO
    709-532-4990
    or
    Rambler Metals and Mining Plc.
    Corporate Office
    +44 (0) 20 8652-2700
    +44 (0) 20 8652-2719 (FAX)
    www.ramblermines.com
    or
    Seymour Pierce Limited
    Nandita Sahgal
    +44 (0) 20-7107-8000
    or
    Pelham Bell Pottinger
    Klara Kaczmarek / Philippe Polman
    +44 (0) 20-7861-3232
    or
    Ocean Equities Limited
    Guy Wilkes
    +44 (0) 20-7786-4370