Rns...26 Jan 2010 07:34
26th January 2010 RAMBLER METALS & MINING PLC INVESTIGATES THE RESOURCE POTENTIAL AT THE NUGGET POND GOLD MINE LONDON, ENGLAND and BAIE VERTE, NEWFOUNDLAND and LABRADOR: Rambler Metals & Mining PLC (TSX VENTURE:RAB) (AIM:RMM) is pleased to announce that, following the recent purchase of the Nugget Pond gold facility, it will be investigating the resource potential within the 140L mining lease. HIGHLIGHTS * Exploration target of 13,000 to 15,000 ounces of gold contained within 50,000 to 66,000 tonnes grading at 7 to 9 g/t gold. * Low capital development and operating costs. * Permitted mill and tailings impound. * Crown pillar amenable to open pit mining methods. George Ogilvie, President and CEO commented, "The possible uncovering of gold resources at Nugget Pond represents an exciting opportunity for Rambler. Over the coming months the Company will evaluate mining the crown pillar which will have minimal capital requirements and quick start-up. With an operating mill onsite and the present market price of gold Rambler considers Nugget Pond to be an asset of significant value that could provide some self funding opportunities towards our Project Financing." The recent purchase of the Nugget Pond gold facility on the Baie Verte Peninsula, Northeastern Newfoundland (see Company press release October 27, 2009) has prompted the Company to evaluate the potential of any remaining resources within the 140L mining lease. Both the mine and the mill are located within the 100% owned Nugget Pond Property. The mill itself is currently under care and maintenance while the Company finalizes engineering design for the expansion of a copper floatation circuit. The Nugget Pond Gold Mine began commercial production in April 1997 at a milling rate of 350 mtpd and was later optimized to 500 mtpd. After four years of profitable operations, production ceased in August 2001 due to depleting reserves and depressed gold prices. During operations the deposit produced a total of 168,748 ounces of gold from 487,765 tonnes of ore grading approximately 10.76 g/t. The facility surpassed all expectations by running continuously at 98% availability with an average recovery of 95%. Since its initial startup in 1997 the mill has seen ore from three other gold deposits with almost 1.5 million tonnes of ore processed over its life to date. RESOURCE POTENTIAL Upon review of the digital database compiled during the mines closure, Rambler has estimated an exploration target of 13,000 to 15,000 ounces of gold contained within 50,000 to 66,000 tonnes grading at 7 to 9 g/t gold. Rambler cautions that the estimated tonnes and grade are conceptual in nature and are based on previous diamond drilling results that defined the length, thickness, depth and grade of the original resource and reserve estimate. Since the initial closure of the mine limited exploration has been completed on the property and Rambler cautions that there is a risk that further exploration will not