19 Feb 2014 07:00
19 February 2014
Second Quarter 2014 Operating Results
London, England & Baie Verte, Newfoundland and Labrador, Canada -Rambler Metals and Mining plc (TSXV: RAB, AIM: RMM) ('Rambler' or the 'Company'), a copper and gold producer operating in Newfoundland and Labrador, Canada, today provides an operational update for its fiscal second quarter ending 31 January 2014.
Highlights in the quarter:
· Production of 6,818 tonnes of copper concentrate representing a 3 per cent increase over the previous quarter and a 71 per cent increase over the same period in fiscal 2013.
· Dry tonnes milled of 50,957 tonnes representing an 8 per cent decrease over the previous quarter and a 10 per cent increase over the same period in fiscal 2013, resulting in the production of:
o 1,978 tonnes of Copper (1 per cent increase from the previous quarter )
o 1,551 ounces of Gold (6 per cent decrease from the previous quarter)
o 10,764 ounces of Silver (9 per cent decrease from the previous quarter)
· Head grades of Copper 4.00 per cent, Gold 1.43 grammes per tonne and Silver 8.89 grammes per tonne with recoveries to concentrate for Copper 97 per cent, Gold 69 per cent and Silver 82 per cent.
· Concentrate grade for Copper 29.0 per cent, Gold 7.1 grammes per tonne and Silver 49.1 grammes per tonne.
Norman Williams, CA, President and CEO, commented:
"The Executives and Board of Directors are pleased with the steady results being delivered from the Baie Verte operations.
"I am pleased to see that past issues such as the freezing of the coarse ore bin has mitigated resulting in more consistent throughput, especially in such extreme weather conditions. This I believe demonstrates the strength of the operational team and their ability to provide effective solutions to challenging operating issues."
Robert P. McGuire, P.Eng, General Manager, commented:
"Despite the extreme cold temperatures, and electrical power outages, the operation continues to produce at expected rates and we remain within our guidance forecasts."
OPERATIONAL SUMMARY
Since first declaring commercial production in November 2012 the Company has milled 244,013 dry metric tonnes and produced 27,211 tonnes of copper concentrate containing 7,887 tonnes of copper metal, 6,343 ounces of gold and 46,592 ounces of silver. The average feed grade during this period was 3.71 per cent copper, 1.41 grammes per tonne gold and 9.00 grammes per tonne silver followed by a mill recovery of 94 per cent, 63 per cent and 74 per cent for copper, gold and silver respectively. The second quarter results for the fiscal year were again better than the average over the period.
Table 1 - Ore and Concentrate Production Summary for Commercial Production Period
PRODUCTION | Q2 2013 (Nov, Dec, Jan) | Q3 2013 (Feb, Mar, Apr) | Q4 2013 (May, Jun, Jul) | Q1 2014 (Aug, Sep, Oct) | Q2 2014 (Nov, Dec, Jan) | |
Dry Tonnes Milled | 46,463 | 43,907* | 47,027 | 55,659 | 50,957 | |
Copper Recovery | 89 % | 91 % | 94 % | 96 % | 97% | |
Gold Recovery | 58 % | 62 % | 65 % | 62 % | 69% | |
Silver Recovery | 68 % | 71 % | 73 % | 76 % | 82% | |
Copper Head Grade (%) | 3.14 | 3.59 | 4.05 | 3.71 | 4.00 | |
Gold Head Grade (g/t) | 1.13 | 1.29 | 1.52 | 1.64 | 1.43 | |
Silver Head Grade (g/t) | 7.19 | 8.68 | 10.95 | 9.22 | 8.89 | |
CONCENTRATE (Produced and Stored in Warehouse) | ||||||
Copper (%) | 27.6 | 27.9 | 30.0 | 29.7 | 29.0 | |
Gold (g/t) | 6.7 | 6.7 | 7.7 | 7.8 | 7.1 | |
Silver (g/t) | 51.0 | 51.4 | 58.6 | 56.0 | 49.1 | |
Dry Tonnes Produced | 3,983 | 4,575 | 5,244 | 6,591 | 6,818 | |
Copper Metal (tonnes) | 1,101 | 1,278 | 1,574 | 1,956 | 1,978 | |
Gold (ounces) | 853 | 987 | 1,297 | 1,655 | 1,551 | |
Silver (ounces) | 6,528 | 7,557 | 9,873 | 11,870 | 10,764 | |
Note: * Freezing of the coarse ore bin in February
Table 2 below indicates the comparative results from Q2 2013 versus Q2 2014 and Q1 2014 versus Q2 2014. The comparisons indicate the operational improvements accomplished over the last twelve months as well as the stable production profile over the last six months.
Table 2 - Quarter over Quarter Results Comparison
PRODUCTION | Q2 2013 (Nov, Dec, Jan) | Q2 2014 (Nov, Dec, Jan) | Q1 2014 (Aug, Sep, Oct) | Q2 2014 (Nov, Dec, Jan) | |||
Dry Tonnes Milled | 46,463 | 50,957 | 10 % | 55,659 | 50,957 | -8 % | |
Copper Recovery | 89 % | 97 % | 9 % | 96 % | 97 % | 1 % | |
Gold Recovery | 58 % | 69 % | 19 % | 62 % | 69 % | 12 % | |
Silver Recovery | 68 % | 82 % | 20 % | 76 % | 82 % | 8 % | |
Copper Head Grade (%) | 3.14 | 4.00 | 27 % | 3.71 | 4.00 | 8 % | |
Gold Head Grade (g/t) | 1.13 | 1.43 | 27 % | 1.64 | 1.43 | -13 % | |
Silver Head Grade (g/t) | 7.19 | 8.89 | 24 % | 9.22 | 8.89 | -4 % | |
CONCENTRATE (Produced and Stored in Warehouse) | |||||||
Copper (%) | 27.6 | 29.0 | 5 % | 29.7 | 29.0 | -2 % | |
Gold (g/t) | 6.7 | 7.1 | 6 % | 7.8 | 7.1 | -9 % | |
Silver (g/t) | 51.0 | 49.1 | -4 % | 56.0 | 49.1 | -12 % | |
Dry Tonnes Produced | 3,983 | 6,818 | 71 % | 6,591 | 6,818 | 3 % | |
Copper Metal (tonnes) | 1,101 | 1,978 | 80 % | 1,956 | 1,978 | 1 % | |
Gold (ounces) | 853 | 1,551 | 82 % | 1,655 | 1,551 | -6 % | |
Silver (ounces) | 6,528 | 10,764 | 65 % | 11,870 | 10,764 | -9 % | |
Quarter over Quarter (Q1 2014 vs Q2 2014 and Q2 2013 vs Q2 2014)
· Production of 6,818 tonnes of copper concentrate representing a 3 per cent increase over the previous quarter and a 71 per cent increase over the same period in fiscal 2013.
· Dry tonnes milled were lower with 50,957 tonnes, representing an 8 per cent decrease over the previous quarter and 10 per cent increase over the same period in fiscal 2013. Process tonnes were lower during the quarter due to intermittent power outages and additional maintenance due to extreme cold conditions. This resulted in the production of:
o 1,978 tonnes of Copper (1 per cent increase over Q2'14 and 80 per cent increase over Q2'13)
o 1,551 ounces of Gold (6 per cent decrease over Q2'14 and 82 per cent increase over Q2'13)
o 10,764 ounces of Silver (9 per cent decrease over Q2'14 and 65 per cent increase over Q2'13)
· Head grades of Copper 4.00 per cent, Gold 1.43 grammes per tonne and Silver 8.89 grammes per tonne, with recoveries to concentrate for Copper 97 per cent, Gold 69 per cent and Silver 82 per cent. Each of these key performance indicators show a consistent trend compared to the previous quarter and a marked improvement over the same quarter in fiscal 2013.
· Concentrate grade for Copper 29.0 per cent, Gold 7.1 grammes per tonne and Silver 49.1 grammes per tonne. Concentrate production has been comparatively consistent throughout the fiscal year.
Details of the Company's financial performance, including capital expenditure and operating costs, will be included in its Q2 2014 financial results to be released on, or before, Friday 28 March 2014.
Fiscal 2014 Forecast
The operational results for the fiscal year continue to be in line with forecasts. Copper production for the 2014 fiscal year is forecast between 5,700 and 6,840 tonnes of metal with 4,500 to 5,500 ounces of gold in concentrate and 32,000 to 39,000 ounces of silver.
PRODUCTION - Fiscal 2014 | YTD | CONCENTRATE - Produced | YTD | ||||
Dry Tonnes Milled | 200,000 - 220,000 | 106,615 | Dry Tonnes Produced | 20,000 - 24,000 | 13,409 | ||
Copper Recovery | 92 - 94 % | 96 % | Copper (%) | 27 - 30 | 29.4 | ||
Gold Recovery* | 63 - 67 % | 65 % | Gold (g/t) | 6 - 8 | 7.5 | ||
Silver Recovery | 55 - 65 % | 79 % | Silver (g/t) | 45 - 55 | 52.7 | ||
Copper Head Grade (%) | 3 - 4 | 3.85 | Copper Metal (tonnes) | 5,700 - 6,840 | 3,935 | ||
Gold Head Grade (g/t) | 1 - 2 | 1.54 | Gold (ounces )* | 4,500 - 5,500 | 3,206 | ||
Silver Head Grade (g/t) | 6 - 8 | 9.06 | Silver (ounces) | 32,000 - 39,000 | 22,634 | ||
Note: *Gold recovery to concentrate only. Additional ounces are being forecasted for the remainder of the fiscal year through improved head grade and higher than budgeted recovery.
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, 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:RMM.
For further information, please contact:
Peter Mercer Vice President and Corporate Secretary Rambler Metals and Mining Tel No: 709-800-1929 Fax No: 709-800-1921 |
Rambler Metals & Mining Plc Corporate Office Tel No: +44 (0) 20 8652-2700 Fax No: +44 (0) 20 8652-2719 | |
Stewart Dickson / Jeremy Stephenson Cantor Fitzgerald Europe Tel No: +44 (0) 20 7894 7000 | Tim Blythe/Halimah Hussain Blythe Weigh Communications Tel No: +44 (0) 20 7138 3204 | Guy Wilkes Ocean Equities Limited Tel No: +44 (0) 20-7786-4370 |
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.