Sandstorm Gold Announces That Rambler's Ming Mine is Now in Production
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2011) - Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (TSX VENTURE:SSL) announces that Rambler Metals and Mining plc (TSX VENTURE:RAB)(AIM:RMM) ('Rambler') is now mining and processing ore from its flagship project, the Ming Copper‐Gold Mine (the "Ming Mine"), located on Newfoundland and Labrador's Baie Verte Peninsula, Canada. In accordance with Sandstorm's gold purchase agreement with Rambler, Sandstorm is entitled to receive 25%-32% (depending on the metallurgical recovery rate of gold) of the first 175,000 ounces of payable gold, and 12% of the payable gold produced thereafter from the Ming Mine. There is no ongoing cost per ounce for the gold delivered from the Ming Mine.
Highlights
Production has begun and the first gold dore has been poured at the Ming Mine. Commercial production is targeted before the end of fiscal 2012
Milling of the 1806 gold zone started on November 28, 2011 and to date 6,877 tonnes have been milled at an average head grade of 4.29 g/t gold and recovery of 90%
Rambler has 3,509 tonnes of 1806 zone ore stockpiled at an average grade of 4.10 g/t gold with an additional 78,599 tonnes of this material having been blasted, drilled, developed or designed
Construction of the copper concentrator is now completed along with pre‐rock commissioning. The plant is ready for live ore testing utilizing Lower Footwall material once the first stoping blocks in the 1806 Zone are finished being processed
The delineation and exploration diamond drilling program has returned encouraging results extending previously modeled mineralization, including:
26.20 metres of 8.88 g/t gold (including 3.10 metres of 59.36 g/t)
32.30 metres of 6.84 g/t gold (including 6.00 metres of 20.27 g/t)
"Production at the Ming Mine is an exciting milestone for both Rambler and Sandstorm", said Sandstorm President & CEO Nolan Watson. "In 2012 we will be purchasing gold from five different projects and another two are coming online in early 2013." |
