LONDON, ENGLAND and BAIE VERTE, NEWFOUNDLAND and LABRADOR April 12, 2010- Rambler Metals and Mining PLC (TSX VENTURE:RAB)(AIM:RMM) is pleased to announce it has submitted the environmental registration for the Ming Copper Gold Mine Project and provides an update for the project situated on the Baie Verte Peninsula, Newfoundland, Canada.
•Ming Copper Gold Mine Project Environmental officially registered
•Nugget Pond Mill Expansion near completion, with new key equipment expected August 2010
•Mine and Port Infrastructure construction to commence following environmental release
•NI43-101 Feasibility Study to be completed in Q2 2010 following review by independent consultants
•Project financing in place to bring Ming Mine into production in 2011
George Ogilvie, President and CEO commented;
“Following the acquisition of the Nugget Pond Mill in October 2009, the Ming Copper Gold Mine Project has made significant steps towards production. The official Environmental Registration of the Project has marked another key milestone for the Company.
The mill expansion and engineering work is nearing completion and in many areas throughout the Project essential long lead time equipment has been ordered. Therefore following environmental release of the project we will be in a position to move quickly into the construction phase of the project in calendar Q3 2010.
Importantly with project financing secured and effectively providing the Company with access to C$28 Million of cash, a major risk to the development of this project has been mitigated. I’m confident our operational team can execute the plan and bring the Ming Copper Gold Mine into production in 2011 benefiting all stakeholders and taking advantage of robust copper and gold prices.”
The Company is pleased to announce that the Ming Mine Copper Gold Mine Project has now been officially registered with the Provincial and Federal Governments and the general public for consultation and comment. In conjunction with this registration Rambler has held a number of local public meetings since early 2010 in the Baie Verte area to describe the undertaking and to address public questions relating to the Mine. The general feedback from the public sessions was positive.
Upon satisfactory review of the proposal the Project should be released allowing construction to begin. The Company envisages the construction phase beginning in Q3 2010. A complete copy of the registration document as well as the Company’s public presentation can be found at www.ramblermines.com.
Nugget Pond Mill Expansion
Engineering for the expansion of the Nugget Pond Mill that will allow the existing Mill not only to handle ‘free gold’ but also massive sulphide ore through a copper flotation circuit is nearing completion. Subsequently the completion of the process flow sheet, in conjunction with the drawdown of the first US$5 Million tranche of funding from Sandstorm Resources Ltd (TSX VENTURE:SSL), has allowed the Company to begin procurement of the copper flotation equipment. Equipment ordered to date includes flotation cells, thickeners, filter press, and process tanks with expected delivery to site by August 2010. All the equipment being ordered is new.
Mine and Port Infrastructure
Engineering design work for the Mine Office and Dry Facility has now been completed and Rambler has tendered and received proposals for this work. A contractor will be chosen shortly with the intention of procuring the facility for installation immediately following the environmental release of the Mine.
The Company intends to utilise the port of Goodyear’s Cove, a deep water port some 145 km south of the Nugget Pond Mill which is accessible via paved roads and provides the Company with easy access to the North American and European shipping lanes. The Company intends to erect a concentrate storage facility at the port capable of storing 6,500 wmt prior to shipment with an enclosed conveyor system to feed the shipping vessels with bulk concentrate. The engineering for this facility has been completed with request for proposals to be sent out in the month of April.
Following environmental release and upon acceptance of the development plan by the Department of Natural Resources for the Project, the Company intends to immediately ramp up its labour force to begin underground construction and capital development activities to establish stoping blocks for mining in 2011.
Progress of NI43-101 Feasibility Study
Upon the acquisition of the Nugget Pond Mill in October 2009 from Crew Gold (TSX:CRU), the Company immediately engaged a group of consultants to help it advance its internal business plan to a NI43-101 compliant feasibility study. The consulting group with their disciplines consist of Thibault and Associates (Process and Metallurgical), Mr. Dave Barbour, P.Geo (Geological Resource), ADI (Civil, Mechanical and Electrical) and Stantec (Environmental, Mine Engineering, Economic and overall NI43-101 sign-off). The NI43-101 Feasibility Study is nearing completion and is due for delivery to the Company in calendar 2Q 2010. Completion of a satisfactory NI43-101 Feasibility Study will in turn result in Rambler being granted access to the second tranche of US$2 Million funding under the terms of its agreement with Sandstorm Resources Ltd (TSX VENTURE:SSL).
The Company recently announced the completion of a C$4 Million private placement (approximately Pounds Sterling 2.7 million) to bolster the treasury position which has raised the Company’s treasury position to C$13 Million. Additionally over the coming months the Company will have access to the remaining US$15 Million in funding under the terms of its agreement with Sandstorm Resources. This will provide the Company with approximately C$28 Million in cash to fund the capital expenditures required to bring the Mine back into production in 2011.
The Company is also in preliminary discussions with potential off-takers for the marketing of the copper concentrate.
Rambler was founded in 2004 when Altius Minerals Corporation (“Altius”), a Newfoundland and Labrador resource company, contributed to Rambler’s asset base with an option to acquire and develop the Ming Mine. Following the acquisition of the Ming Mine, Rambler, listed on 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 existing infrastructure 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 two NI43-101 resource statements, 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 mine to produce a copper concentrate with gold and silver as by-products as well as recover any free gold.
Rambler is about to embark on the construction phase of the project with the intention of bringing the Ming Mine into production in 2011 following the environmental release of the project.
Caution Regarding Forward-Looking Statements
Certain information included in this press release, including information relating to future financial or operating performance and other statements that express management’s expectations or estimates of future performance constitute “forward-looking statements.” Such forward-looking statements include, without limitation, estimates regarding timing of future development and production. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, interpretation and implications of drilling and geophysical results; estimates regarding timing of future capital expenditures and costs towards profitable commercial operations. Other factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, increases/decreases in production; volatility in metals prices and demand; currency fluctuations; cash operating margins; cash operating cost per pound sold; costs per ton of ore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to successfully integrate acquired assets; operational risks inherent in mining or development activities, and legislative factors relating to prices, taxes, royalties, land use, title and permits, importing and exporting of minerals and environmental protection. Accordingly, undue reliance should not be placed on forward-looking statements. These forward-looking statements are made as at the date hereof and Rambler does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise, except as required under applicable securities law. For a more detailed discussion of such risks and other factors, see Rambler’s latest filings with Canadian securities regulators.
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.