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

Rambler Metals & Mining Plc

June 28, 2011 09:30 ET

Significant Progress Being Made at Rambler's Copper Gold Projects

LONDON, UNITED KINGDOM and BAIE VERTE, NEWFOUNDLAND AND LABRADOR--(Marketwire - June 28, 2011) - Rambler Metals and Mining plc (TSX VENTURE:RAB)(AIM:RMM) ('Rambler' or the 'Company') is pleased to provide this update on each of its copper and gold projects on the Baie Verte Peninsula.

HIGHLIGHTS

Ming Mine

  • Project construction remains on schedule for first production in the second half of 2011
  • Multiple headings of pre-production development to the ore bodies continuing with ore now being stockpiled while the Nugget Pond concentrator remains on the critical path to production
  • Construction of the concentrate storage facility at Goodyear's cove is underway and is expected to be completed well in advance of the first concentrate production
  • Workforce increased to 108 employees in total and expected to grow ahead of full production

Nugget Pond Crown Pillar

  • Mining and milling of the crown pillar is now complete. After refining and cleanout a total of 1053 gold ounces were recovered. The total all in cash cost was $ 401 per ounce providing the Company with a net profit of CAD $ 1,132,437 from the operation

Tilt Cove East Mine

  • Transportation and processing of the Tilt Cove stockpile to the Nugget Pond mill began early June. To date 5424 tonnes of material have been processed at an average feed grade of 2.64 g/t gold with an estimated recovery of 92%. Processing is expected to continue throughout the summer until construction of the new concentrator is completed and ready for commissioning

George Ogilvie, President and CEO commented:

"The Company is making good progress in bringing the Ming Mine into production in the second half of 2011.

We anticipate the mining of the Tilt Cove East deposit will be as successful as the Nugget Pond Crown Pillar, creating another net profit for the Company. We expect the net profit from these satellite deposits, and toll milling contracts as a whole, will more than payback the CAD $3.5M Rambler paid for the mill in 2009.

In the coming months we will ramp up our labour force in preparation for full production. Shortly we will turn our attention to signing an off-take agreement for our valuable concentrate; we are well positioned with numerous offers on the negotiating table. We will also be advancing our engineering studies for the Lower Footwall Zone which we see as an integral part of our Phase II expansion plans.

Over the longer term we remain bullish on copper and gold while we continue to develop our operations in stable jurisdictions; namely in Canada."

Ming Copper Gold Mine

Construction activities at the Ming Mine are proceeding at pace and on schedule with preproduction development into the main ore bodies being the main focus for the underground crews. There are currently multiple heading accessing the 1806 Zone with a resource of 349,000 tonnes grading 3.96 g/t Au and 0.60 % Cu. The Company currently has 2,500 tonnes of ore stockpiled and is aiming for a 15,000 tonne stockpile prior to commissioning the mill concentrator. Shortly development crews will turn their focus to the 1807 Zone with a measured and indicated resource grade of 432,000 tonnes grading 3.86 % Cu, 1.75 g/t Au and 7.18 g/t Ag. At present the total direct employment for the project is 108 people. Over the next couple of months the company will complete the hiring process to bring the labour force up to full requirements for mining and milling; at full production the Company will employ over 130 people.

At the Nugget Pond mill site work on the new concentrator is continuing in conjunction with the daily gold hyrdomet operations where the Tilt Cove material is being processed. At present contractors are finalizing the buildings concrete and steel work in preparation for the arrival of the super cladding early in July. With the recent award of the electrical contract the majority of third party contracts have now been let with the only remaining items being the heating, ventilation and sprinkler systems.

Finally, ground and foundation work for the concentrate storage facility at Goodyear's Cove has begun. The building itself has been ordered and expected to arrive in July; with all ground work completed before arrival the facility will be ready well in advance of the first concentrate production from the Nugget Pond Mill.

Nugget Pond Crown Pillar

The mining and milling of the Crown Pillar project is now complete in addition to all site reclamation. During the 18 days in operation approximately 7,283 tonnes of material were excavated at an average grade of 3.88 g/t gold. The tonnes of ore were less than the Company expected due to the intersection of an unknown fault which resulted in lower recovered ounces of gold. At the end of the program three gold Dore bars with a total weight of 55.2 kg's were poured and delivered to Johnston and Matthews refinery for further processing. Upon reconciliation from the refinery 978 ounces was recovered from the gold Dore bars. The material from the cleanout process delivered another 75 ounces bringing the total gold ounces for the project to 1053. The average recovery for the operation was 94.9% which is in line with the Company's expectations.

With an all in total cash cost from the operation of $401 dollars per ounce the company has realized a net profit of CAD $1,132,437.

Tilt Cove – East Mine Deposit

Subsequent to the completion of the Crown Pillar project the Company has begun moving material from the Tilt Cove East Mine to the Nugget Pond facility. Rambler is spearheading the project under a NSR agreement with Metals Creek Resources (TSX VENTURE:MEK) (see RMM press release dated January 19, 2011). While the agreement itself was only signed in January 2011 the short path to production was possible due to the attention of provincial regulators and that the majority of infrastructure was already in place and operating.

Processing of the material has been proceeding well with an average daily throughput exceeding 500 mtpd and average recovery of 92%. The Company estimates that there remains between 40,000 and 70,000 tonnes of material at Tilt Cove that still has to be transported to the Nugget Pond Mill facility. With the material remaining at Tilt Cove the Company expects the operation to continue throughout the remaining summer months while the Nugget Pond Mill Concentrator prepares for commissioning in the second half of 2011.

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 reported are dry metric tonnes.

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 & Mining Plc.
    George Ogilvie, P.Eng.
    President and CEO
    709-800-1929 or 709-800-1921

    Rambler Metals & Mining Plc.
    Corporate Office
    +44 (0) 20 8652-2700
    +44 (0) 20 8652-2719 (FAX)
    www.ramblermines.com

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

    Pelham Bell Pottinger
    Charles Vivian
    +44 (0) 20 7861 3126

    Pelham Bell Pottinger
    Philippe Polman
    +44 (0) 20 7861 3921

    Ocean Equities Limited
    Guy Wilkes
    +44 (0) 20-7786-4370