21 May 2015 07:00
21 May 2015
Third Quarter 2015 Production 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 third quarter ending 30 April 2015 ('Q3/15').
Q3/15 operating cash flow is expected to be positive with a projected return to overall profitability for the quarter. The Company is targeting to meet the bottom end of its revised production forecast.
Highlights OF the quarter:
· The Group continues to implement the January 2015 revised mine plan with mine production meeting planned targets;
· Towards the end of the quarter tonnage through the concentrator averaged over 700 mtpd, and continues at this level to date. Significant amounts of snowfall early in the quarter reduced mill production during the quarter;
· For the quarter head grades for copper averaged 2.71 per cent; gold at 1.12 grammes per tonne; silver at 7.88 grammes per tonne. Recoveries to concentrate for copper were 97.10 per cent, gold 74.36 per cent and silver 78.93 per cent;
· For Q3/15 there was production of: 1,043 tonnes of copper; 1,106 ounces of gold; 8,305 ounces of silver. Dry tonnes milled of 42,747 tonnes, representing a 13 per cent decrease on Q3/14 results and a 22 per cent decrease on Q2/15;
· Production of 3,989 tonnes of copper concentrate representing a 14 per cent decrease over Q2/15. Concentrate grade of 26.15 per cent, 8.63 grammes per tonne and 64.75 grammes per tonne for copper, gold and silver respectively; and
· With the implemented cost efficiency measures still in effect, operating cash flow for the quarter is expected to be positive. Despite the lower than planned throughput during Q3 the Company is projecting a return to overall profitability for the quarter. Further details will be announced on or before 25 June 2015 with the release of the complete financial statements.
Norman Williams, CA, President and CEO, commented:
"With the winter season now behind us, during May, we have averaged 712 mtpd through the copper concentrator, a 10 per cent increase over what we anticipated. We have also maintained positive operating cash flow which should continue for the remainder of the fiscal year at a higher than planned milling rate.
"The operations team were able to push mill throughput, and they now have a better understanding of the milling capacity as the Company continues to optimize the newly purchased two stage crushing unit, installed during the second quarter. This work will provide long term benefits as we begin integrating Lower Footwall material into the production stream.
"This has been the first full quarter since the revised mine plan was implemented in January. The Company continues to review the mine plan for ways to improve production throughput and grade for the remainder of the fiscal year."
Q3 OPERATIONAL SUMMARY
For fiscal Q3/15 the Company milled 42,747 dry metric tonnes of ore and produced 3,989 tonnes of copper concentrate containing 1,043 tonnes of copper metal, 1,106 ounces of gold and 8,305 ounces of silver. The average feed grade during this period was 2.71 per cent copper, 1.12 grammes per tonne gold and 7.88 grammes per tonne silver followed by a mill recovery of 97.10 per cent, 74.36 per cent and 78.93 per cent for copper, gold and silver respectively.
The Company first declared commercial production in November 2012 and has since milled 509,055 dry metric tonnes producing 53,157 tonnes of copper concentrate containing 15,199 tonnes of copper metal, 13,898 ounces of gold and 105,461 ounces of silver.
The third quarter of the Company's fiscal year marks the end of a difficult winter season with above average snow fall and cold conditions. These conditions did impact production through the copper concentrator during February and March however, late in the quarter we were able to push mill throughput and gained a better understandingof the crusher's capabilities and feed through the coarse ore bin. The optimization of these units are an important component for the Company's plans to double mill production over the next three years.
Presently the mine and mill are meeting the monthly production targets with May's mill's production now averaging over 712 mtpd. The Company is targeting to meet the bottom end of its revised production forecast.
Details of the Company's financial performance, including capital expenditure and operating costs, will be included in its Q3/15 financial results to be released on or before Thursday 25 June 2015.
Table 1 - Fiscal 2015 Production Guidance - Ore and Concentrate Production
Summary for Fiscal Q3/15 (see Note 1 below)
PRODUCTION | Q1/15 | Q2/15 |
|
|
| Q3/15 | YTD |
| F2015 Guidance | |
|
|
|
| Feb'15 | Mar'15 | Apr'15 |
|
|
|
|
| Dry Tonnes Milled | 58,546 | 54,869 | 11,443 | 15,337 | 15,967 | 42,747 | 156,162 |
| 215,000 - 230,000 |
|
|
|
|
|
|
|
|
|
|
|
| Copper Recovery (%) | 97.1 | 97.0 | 97.0 | 97.1 | 97.2 | 97.1 | 97.0 |
| 94 - 96 % |
| Gold Recovery (%) | 69.2 | 68.1 | 73.0 | 75.2 | 74.6 | 74.4 | 70.2 |
| 65 - 70 % |
| Silver Recovery (%) | 73.0 | 71.3 | 76.3 | 81.8 | 78.1 | 78.9 | 73.9 |
| 60 - 75 % |
|
|
|
|
|
|
|
|
|
|
|
| Copper Grade (%) | 2.79 | 2.76 | 2.77 | 3.02 | 2.36 | 2.71 | 2.76 |
| 2.5 - 3.5 |
| Gold Grade (g/t) | 1.26 | 1.11 | 1.16 | 1.19 | 1.02 | 1.12 | 1.17 |
| 1.0 - 2.0 |
| Silver Grade (g/t) | 9.12 | 8.76 | 7.34 | 8.48 | 7.68 | 7.88 | 8.63 |
| 6.0 - 8.0 |
|
|
|
|
|
|
|
|
|
|
|
| CONCENTRATE (Delivered to Warehouse)
|
|
|
|
|
|
|
|
|
|
| Copper (%) | 28.52 | 27.62 | 25.81 | 26.06 | 26.54 | 26.15 | 27.54 |
| 27 - 30 |
| Gold (g/t) | 8.98 | 8.49 | 8.51 | 8.32 | 9.08 | 8.63 | 8.69 |
| 6 - 8 |
| Silver (g/t) | 66.11 | 66.11 | 57.66 | 62.06 | 73.78 | 64.75 | 65.26 |
| 45 - 55 |
|
|
|
|
|
|
|
|
|
|
|
| Dry Tonnes Produced | 5,072 | 4,648 | 1,082 | 1,584 | 1,323 | 3,989 | 13,709 |
| 20,000 - 24,000 |
| Copper Metal (t) | 1,447 | 1,284 | 279 | 413 | 351 | 1,043 | 3,774 |
| 5,400 - 6,700 |
| Gold (oz) | 1,464 | 1,269 | 296 | 424 | 386 | 1,106 | 3,840 |
| 5,600 - 6,600 |
| Silver (oz) | 10,781 | 9,878 | 2,006 | 3,160 | 3,138 | 8,305 | 28,964 |
| 39,000 - 46,000 |
Quarter over Quarter (Q3/14 vs Q3/15 and Q2/15 vs Q3/15)
Table 2 - Quarter over Quarter Results Comparison (see Note 1 below)
PRODUCTION | Q3/14 (Feb, Mar, Apr) | Q3/15 (Feb, Mar, Apr) |
| Q2/15 (Nov, Dec, Jan) | Q3/15 (Feb, Mar, Apr) |
| |
|
|
|
|
|
|
|
|
| Dry Tonnes Milled | 49,355 | 42,747 | -13% | 54,869 | 42,747 | -22% |
|
|
|
|
|
|
|
|
| Copper Recovery (%) | 96.4 | 97.1 | 1% | 97.0 | 97.1 | 0% |
| Gold Recovery (%) | 66.2 | 74.4 | 12% | 68.1 | 74.4 | 9% |
| Silver Recovery (%) | 79.2 | 78.9 | 0% | 71.3 | 78.9 | 11% |
|
|
|
|
|
|
|
|
| Copper Head Grade (%) | 3.84 | 2.71 | -30% | 2.76 | 2.71 | -2% |
| Gold Head Grade (g/t) | 1.62 | 1.12 | -31% | 1.11 | 1.12 | 1% |
| Silver Head Grade (g/t) | 11.70 | 7.88 | -33% | 8.76 | 7.88 | -10% |
CONCENTRATE (Produced and Stored in Warehouse) |
|
|
|
|
| ||
| Copper (%) | 29.32 | 26.15 | -11% | 27.62 | 26.15 | -5% |
| Gold (g/t) | 8.02 | 8.63 | 8% | 8.49 | 8.63 | 2% |
| Silver (g/t) | 79.15 | 64.75 | -18% | 66.11 | 64.75 | -2% |
|
|
|
|
|
|
|
|
| Dry Tonnes Produced | 6,238 | 3,989 | -36% | 4,648 | 3,989 | -14% |
| Copper Metal (tonnes) | 1,829 | 1,043 | -43% | 1,284 | 1,043 | -19% |
| Gold (ounces) | 1,608 | 1,106 | -31% | 1,269 | 1,106 | -13% |
| Silver (ounces) | 13,196 | 8,305 | -37% | 9,878 | 8,305 | -16% |
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:RMM.
For further information, please contact:
Norman Williams, CPA, CA President and CEO Rambler Metals & Mining Plc Tel No: 709-800-1929 Fax No: 709-800-1921 | Peter Mercer Vice President and Corporate Secretary Rambler Metals & Mining Plc Tel No: +44 (0) 20 8652-2700 Fax No: +44 (0) 20 8652-2719 |
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Stewart Dickson / Jeremy Stephenson Cantor Fitzgerald Europe Tel No: +44 (0) 20 7894 7000 | Tim Blythe/ Megan Ray Blytheweigh Tel No: +44 (0) 20 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.
Note 1: Results reported are accurate and reflective as of the date of release. The Company performs regular auditing and reconciliation reviews on its mining and milling processes as well as stockpile inventories, following which past results may be adjusted to reflect any changes.
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.