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. Rambler is well on the way to becoming a mid-tier mining company through production from Ming Mine, discovering new deposits and through M&A’s. Rambler listed on the London AIM in 2005 and Toronto TSX-V in 2007.
Rambler Metals and Mining plc currently trades on London's AIM market under symbol RMM and on the TSX:V under symbol RAB.
Rambler Metals & Mining (LON:RMM, CVE:RAB) reported “encouraging” results from exploration drilling at its Ming gold-copper project in Canada and said mining and processing of gold ore has topped expectations.
Exploration drilling in the 1806 zone of Ming mine in Canada returned new visible gold intersections, which, according to Rambler, is a significant discovery for the Ming deposits as it indicates the potential for more undiscovered high grade gold zones.
The diamond drilling results reported today included intervals of 4.45 metres grading 49.69 grammes per tonne (g/t) gold and 29.8 metres at 39.8 g/t gold.
The company also said mining and processing of gold ore has been ahead of expectations with 9,714 ounces of gold poured to date from zone 1806.
At the 1807 zone, development face sampling returned grades of 5.08 per cent copper, 0.94 g/t gold and 10.04 g/t silver and 0.13 per cent zinc.
Meanwhile, development of the 1807 down ramp intersected a previously unknown massive sulphide ore body with grades of 4.05 per cent copper, 4.08 g/t gold, 42.95 g/t silver and 0.31 per cent zinc over 1.5 metres.
Rambler plans to complete gold processing by mid-May, when it plans to start running low-grade copper ore through the concentrator as part of the start-up and commissioning process. High-grade copper ore from the 1807 zone will then be fed through the mill.
“The early gold production from the 1806 zone has been successful; while the recent exploration drilling in new areas of the 1806 zone has also returned some very encouraging grades,” said president and CEO of Rambler George Ogilvie.
“Fiscal 2013 will be an important year...as we aim to place the company on a strong financial footing by executing our Phase I high grade low tonnage mine plan with a mind to continuing to identify opportunities for optimization and possible expansion beyond 2014.”
Shares in Rambler rose one per cent to 34.25 pence in early deals, valuing the company at £46.3 million.
The update drew positive comments from broker Ocean Equities, which expects the exploration success to continue from the 1806 and 1807 zones and the Lower Footwall zone.
“It has been known for some time that the earlier exploration efforts at Ming were production focused and did not get the full measure of the deposit,” said Ocean analyst Christopher Welch.
“Rambler now has a de-risked exploration programme ahead of it with a secure revenue source and so it can broaden the exploration effort.”
The analyst added that Rambler has a fully operational mine, which gives it the ability to quickly turn exploration success into mineable reserves and operating profit.
Speaking of profits, Welch estimates that Rambler’s costs are currently US$1,000 per ounce, giving it a good profit during the initial gold production phase.
Welch also noted that Rambler is inching closer to the start-up of the first copper production phase, calling it a major milestone for the company. Rambler’s base case scenario is for six years production as a small scale production, but Welch expects a transformation of the company to occur before the end of that period.
“The early indications are that the Lower Footwall Zone would be economically viable to develop from only a very high level investigation of the ore zone,” said Welch.
“Developing this zone would turn Rambler into a much larger copper producer and would likely allow the Company to have a dedicated gold production circuit as well.”