Rambler Metals and Mining (LON:RMM, CVE:RAB) said it has intersected visible gold mineralization during pre-production development on the 1700 level of its Ming copper-gold mine.
This confirms the company’s belief that the mine, located in Canada on Newfoundland and Labrador's Baie Verte Peninsula, is underexplored for gold.
Combined development face sampling returned a grade of 44.47 grams per tonne gold, 1.96 percent copper, and 20.02 g/t silver, including a composited chip sample of 227.15 g/t gold over 4.50 metres.
Chief geologist Larry Pilgrim said: "This new discovery is a confirmation of just how underexplored the Ming mine truly is with respect to gold mineralization. There have been historical reports of visible gold at the Ming mine and we have intersected significant gold mineralization in diamond drill holes; however the discovery of gold veinlets is a first for Rambler's exploration program.
The company is designing an exploration program to further evaluate the potential of this zone. Rambler remains, however, focused on the continuation of pre-production development to ensure the mine enters commercial production during the second half of this year.
Rambler is designing an advanced exploration program with the immediate goal of defining the extent of the native gold on the 1700 level and to evaluate the potential of the remaining pillars within the historic stope.
This new exploration program will be in addition to the current program, with the company targeting an improvement in the existing reserve/resource estimates through the extension of current mineralized zones and new discoveries.
These programs will continue alongside pre-production development as new access to the ore body is gained.
Last week, after shareholders approved the previously announced cash call, the company placed 27.78 million shares at 36 pence each, raising £10 million before expenses. Seymour Pierce and Ocean Equities acted as the joint brokers for the placing.
The proceeds will be used for working capital as it begins commissioning the copper floatation circuit and before full production at the Ming mine.