TIDMRMM
RNS Number : 5570D
Rambler Metals & Mining PLC
30 January 2015
30 January 2015
Rambler Implements Revised Plan at the Ming Copper-Gold Mine
London, England & Baie Verte, Newfoundland and Labrador,
Canada -Rambler Metals and Mining plc (TSXV: RAB, AIM: RMM)
("Rambler", "the Company" or "the Group") today provides an update
of operations at the Ming Copper-Gold Mine.
Due to the uncertainty in the copper price and an unforeseen
decline in copper grade in January the Company has begun
implementing short term cost cutting measures whilst it addresses
grade and production issues at the Ming Mine. These measures are
designed to provide additional financial stability for the Company
as it now works towards the lower end of production guidance for
Fiscal 2015.
Key Points
-- The significant decline in copper price during January has
led to a complete review of the 2015 Fiscal plan as the Company
works to re-evaluate the full impact that lower copper prices will
have with the cost cutting measures in place
-- Additional unplanned dilution of ore production stopes due to
ground stability issues in the active stoping areas within the 1807
and MSUP zones have resulted in a decrease in the run of mine head
grade over the last few weeks. It is expected that further ground
support and larger pillar sizing will be required in some existing
and new stoping areas to ensure stope stability
Actions
-- A series of cost cutting measures have been implemented
following discussions with employees. To reduce operating
expenditures and bring costs more in line with expected production
the Company has:
o Implemented some employee lay-offs at the operation to ensure
optimal efficiency in addition to a change in the current shift
schedule
o Suspended all non-critical Property, Plant & Equipment
costs including non-essential capital projects. The Lower Footwall
Zone and Dense Media Separation projects will continue.
o An on-going review of the operation for further cost cutting
efficiencies
MOVING FORWARD
-- The Group remains in compliance with all operating permits
and expects to meet the lower end of the production guidance for
the fiscal year. The Company was cash flow positive up to 31
December 2014 and with the revised plan hopes to return to
generating cash again in February. As at the date of this
announcement the Group has unrestricted cash reserves of $6.5M
which the steps being taken will help protect
-- The current issues at the operations level will not impact
the Dense Media Separation project or the Lower Footwall Zone
pre-feasibility study. Both of these projects are on track with an
update expected over the coming weeks
Norman Williams, President and CEO, commented:
"Since first declaring commercial production in November 2012,
we have been making good progress at the operation and have met or
exceeded all production guidance for the Fiscal year ended 31 July
2014 and the remainder of the 2014 calendar year.
"The recent fall in copper price combined with the ground
stability issues are disappointing but by moving swiftly to reduce
costs and revisiting the fiscal mine plan we are confident we can
deliver on the revised plan while targeting the lower end of our
production guidance communicated in August 2014.
"Though the copper price is outside our control the measures we
are taking are intended to ensure that other issues affecting the
business have only a short term impact."
Ming Copper-Gold Mine Update
As the operation continues to push development deeper in the
mine, exposing new zones for copper production, additional diamond
drilling information is obtained and added to the models. To date
reconciliation of planned reserve tonnes and grade to actuals has
been reasonable. However, any resultant change or additional
unplanned dilution can impact both the timing and grade of the
production headings. A complete re-evaluation of the mine plan is
underway to ensure any further impact on metal production can be
minimized.
Throughout November and December 2014 production was on target.
For the month of January the budgeted run of mine head grade was
estimated at 2.89 per cent copper with 1.50 grammes per tonne gold.
With the added unplanned dilution the head grade over the last
three weeks has decreased to 1.62 per cent copper with 1.01 grammes
per tonne gold.
Increases in ground support and pillar sizing will be required
in some existing and new mining areas; it is expected that the
percentage of ore extraction will be reduced in these same areas.
The Group will strive to minimize the impact of increased pillar
support on the extraction of the reserve by optimizing secondary
ground support systems and reducing the span of hangingwall
undercuts. The revised plan has taken into account these new design
criteria.
Management has briefed its employees and key stakeholders in
relation to the changes in the 2015 Fiscal plan. The Board of
Directors and Executive Management will continue to evaluate and
monitor the status of the operation. Should the Group experience
continued issues following the planned changes, or see further
weakening in the copper markets, additional action may be taken as
required.
With the revised mine plan the Company is expecting to meet the
bottom end range of the production guidance as it works to bringing
the mine back on schedule over the coming months.
PRODUCTION Fiscal 2015 CONCENTRATE Fiscal 2015
(Produced)
215,000 -
Dry Tonnes Milled 230,000 Copper (%) 27 - 30
------------------- ------------ -------------------- --------------
Gold (g/t) 6 - 8
------------------- ------------ -------------------- --------------
Copper Recovery 94 - 96 % Silver (g/t) 45 - 55
------------------- ------------ -------------------- --------------
Gold Recovery 65 - 70 %
------------------- ------------ -------------------- --------------
20,000 -
Silver Recovery 60 - 75 % Dry Tonnes Produced 24,000
------------------- ------------ -------------------- --------------
Copper Metal
(tonnes) 5,400 - 6,700
------------------- ------------ -------------------- --------------
Copper Head Grade Gold (ounces
(%) 2.5 - 3.5 ) 5,600 - 6,600
------------------- ------------ -------------------- --------------
Gold Head Grade 39,000 -
(g/t) 1 - 2 Silver (ounces) 46,000
------------------- ------------ -------------------- --------------
Silver Head Grade
(g/t) 6 - 8
------------------- ------------ -------------------- --------------
Lower Footwall Progress
Presently at 650 metric tonnes per day the operation is a
smaller producer with each development heading and stope closely
tied to meeting its production guidance. When events align as they
have done in January the results can have a short term impact on
the operation, however it does not alter the overall direction for
the Company. The Group remains focused on demonstrating the mining
potential of the Lower Footwall Zone while continuing to use the
massive sulphide zones as a blending source.
The Dense Media Separation project and the pre-feasibility of
the Lower Footwall Zone continue to make good progress. An
independent technical review has been initiated to evaluate the
reserve potential of the updated NI43-101 resource estimate for its
Lower Footwall Zone (see press release dated 2 December 2014). Upon
successful completion of this Study the Group intends to increase
the production stability and flexibility of the operation with the
subsequent integration of this material into the production stream
at a higher and sustainable throughput rate. Further updates on the
progress of this work will be released in the coming weeks.
ABOUT RAMBLER METALS AND MINING
Rambler is a mining and development Company that in November
2012 brought its first mine into commercial production. The group
has a 100 per cent ownership in the Ming Copper-Gold Mine, a fully
operational base and precious metals processing facility and year
round bulk storage and shipping facility; all located on the Baie
Verte peninsula, Newfoundland and Labrador, Canada.
The Company's Vision is to be Atlantic Canada's leading mine
operator and resource developer through growth and expansion of its
existing assets; discovering new deposits; strategic partnerships;
mergers and acquisitions. In addition to the Ming Mine, Rambler has
strategic investments in the former producing Hammerdown gold mine,
the Little Deer/ Whales Back copper mines and the advanced
Valentine Lake Gold Project.
Rambler is dual listed in London under AIM:RMM and in Canada
under TSX-V:RAB.
For further information, please contact:
Norman Williams, CA Peter Mercer
President and CEO Vice President, Corporate
Rambler Metals & Mining Secretary
Plc Rambler Metals & Mining
Tel No: 709-800-1929 Plc
Fax No: 709-800-1921 Tel No: +44 (0) 20
8652-2700
Fax No: +44 (0) 20
8652-2719
Stewart Dickson / Jeremy Tim Blythe/ Halimah
Stephenson Hussain
Cantor Fitzgerald Europe Blytheweigh
Tel No: +44 (0) 20 7894 Tel No: +44 (0) 20
7000 7138 3204
Website: www.ramblermines.com
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 Canada Limited.
Tonnes referenced are dry metric tonnes unless otherwise
indicated.
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.
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 the expectations of management or
estimates of future performance constitute "forward-looking
statements". Such forward-looking statements include, without
limitation, statements regarding copper, gold and silver forecasts,
the financial strength of the Company, estimates regarding timing
of future development and production and statements concerning
possible expansion opportunities for the Company. Where the Company
expresses or implies an expectation or belief as to future events
or results, such expectation or belief are based on assumptions
made in good faith and believed to have a reasonable basis. Such
assumptions include, without limitation, the price of and
anticipated costs of recovery of, copper concentrate, gold and
silver, the presence of and continuity of such minerals at modeled
grades and values, the capacities of various machinery and
equipment, the availability of personnel, machinery and equipment
at estimated prices, mineral recovery rates, and others. 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
and the forward-looking statements contained in this press release
are expressly qualified in their entirety by this cautionary
statement. The forward-looking statements contained herein are made
as at the date hereof and the Company 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 security law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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