Rambler estimates Ming initial capex at $25,5m
miningweekly.com
By: Liezel Hill
26th August 2010
TORONTO (miningweekly.com) – Aim- and TSX Venture Exchange-listed Rambler Metals and Mining is targeting first production from its Ming project, in Newfoundland and Labrador, in the second quarter of 2011, the firm said on Thursday.
Rambler has completed a feasibility study for the project, which is expected to produce an average of 7,7-million pounds of copper, 11 600 oz of gold and 42 600 oz of silver a year, for six years.
Initial capital for the mine is forecast at $25,5-million and total unit operating costs for the project are estimated at $110,89/t.
“The initial life of mine will provide a solid financial basis for the company to expand the reserves at the Ming mine,” said CEO George Ogilvy.
“With feasibility work behind us we look forward to beginning construction while completing our permitting for the Ming Mine site and port facility, expected in Q3 2010.”
Rambler received approval this month to start early construction work on foundations for the Nugget Pond mill and a mine shaft at the mine.
The company has selected contractors for both projects through a bidding process, and expects the work will be completed within the next ten months.
With the feasibility study now complete, the full development plan will be submitted to the provincial Department of Natural Resources.
This will clear the way for offtaker Sandstorm Resources to make the final $15-million payment available to Rambler, which will use the cash to complete construction.
Rambler agreed in March to sell a portion of the life-of-mine gold production Ming to Sandstorm for $20-million, of which $5-million was paid upfront.
Rambler bought the past producing Ming and Ming West mines in 2005.
The company bought the Nugget Pond processing facility last year from Crew Gold, and plans to adapt the gold concentrator to process base metals sulphides from the Ming mine through the addition of a copper flotation circuit, as well as process the free gold that exists in the Rambler geological system. |
