10 Nov 2022 09:28
10 November 2022
Rambler Provides an Operational Update
London, England - Newfoundland and Labrador, Canada - Rambler Metals and Mining plc (AIM: RMM) ("Rambler" or the "Company"), a copper and gold producer, explorer, and developer, announces an operational update for its Ming Mine.
Rambler, having established a developed state in the Ming Mine to support its designed production rate of 1,350 tonnes per day ("tpd") of new mined ore, is now undertaking an efficiency improvement program aimed at optimising the size of the organisation. This process is targeting cost reductions and improvements in operational efficiency that the management expects to yield cost savings of up to US$1 million per month.
In addition, the Company has embarked on a strategic process to evaluate how to best reduce debt and restructure its balance sheet. The goal of this process is to ensure that the Company's current operational success translates into financial success for all stakeholders.
This operational improvement effort consists of the following elements:
1) Optimising the number of personnel at the mine
With four production zones fully operational and each now with multiple headings available for development, it is possible to more efficiently schedule and allocate resources to the development cycle. Three development equipment fleets have been deployed to specific areas of the mine1 to reduce non-productive equipment travel time between working areas and maximise personnel utilisation. The mine development crews needed to achieve the development required reduces from 12 to four while maintaining future ore mining at current rates. This will result in a sustained mine development capacity of 400 meters per month which is sufficient to maintain all four current mining areas at an optimum stope ore to development ore ratio going forward. The personnel complement at Ming Mine as a result of these changes has reduced by 45 persons, down to 186.
2) Mine Blasting Schedule
Historically, given an over-reliance on development ore, blasting was done at the end of every shift. With a reliable inventory of blasted stope ore that has now been established, in addition to periodic sources of development ore, the mine has moved to blasting once per 24 hours at the end of the day shift. Where previously, we were working 2 x 10 hour shifts to allow for blasting between shifts, we have moved to 2 x 11 hour shifts increasing the time available for work by two hours (10%) per day, further improving the utilisation of people and equipment.
3) Temporary Reduction in Development
Over and above the permanent restructure of reducing development crews to four, Rambler is temporarily reducing the development crews to three as the current mine plan does not currently need the development rate that four crews can deliver. At the end of October, developed ore inventories were sitting at 383,000 tonnes of ore across the four mining zones of the operation. With reduced development to the end of June 2023, inventory is projected to be 240,000 tonnes.
These changes in operation have been implemented since the beginning of November 2022 and have resulted in an immediate reduction in cost.
Strategic Balance Sheet and Debt Restructuring Program
At the current time, Rambler has launched a strategic financial restructuring program, the goal of which is to ensure the long-term financial viability of the operations.
Rambler is in discussions with several groups as the Company seeks to restructure its finances. As previously announced, central to this process is Newgen Resource Lending Inc. ("Newgen"), the Company's principal secured creditor, for whom the repayment of its loan was due to start on 31 October 2022. Newgen and Rambler remain in constructive discussions to find a solution to the refinancing or restructuring of the Company. However, there can be no certainty at this stage that Newgen will agree to defer or reschedule the repayment of its loan or interest due on its loan, or the terms on which any deferral will be agreed.
The Company remains confident in the inherent value of the Ming Mine and will update the market as appropriate.
1. Currently (i) the Lower Footwall Zone (710 -760 Levels); (ii) the Lower Footwall Zone (510 - 535 Levels); and (iii) the Ming North Zone and Upper Footwall Zone.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
ABOUT RAMBLER METALS AND MINING
Rambler is a mining and development company that in November 2012 brought its first mine into commercial production. Rambler 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 has established a production profile to meet current mill capacity of 1,350 metric tonnes per day with a target grade of 2% Cu and is evaluating growth opportunities from that base.
Along with the Ming Mine, Rambler also owns 100 per cent of the former producing Little Deer Complex.
Rambler is listed in London under AIM:RMM.
For further information, please contact:
Toby Bradbury President and CEO Rambler Metals & Mining Plc Tel No: +1 (709) 800 1929 Fax No: +1 (709) 800 1921 | Celeste Van Tonder CFO Rambler Metals & Mining Plc Tel No: +1 (709) 800 1929 Fax No: +1 (709) 800 1921 | Tim Sanford. P. Eng. VP & Corporate Secretary Rambler Metals & Mining Plc Tel No: +1 (709) 532 5736 Fax No: +1 (709) 800 1921 |
Nominated Advisor (NOMAD) |
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Ewan Leggat, Caroline Rowe SP Angel Corporate Finance LLP Tel No: +44 (0) 20 3470 0470 | ||
Website: www.ramblermines.com
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.