Sandstorm Gold Announces That Rambler's Ming Mine is Now in Production
MarketwirePress Release: Sandstorm Gold Ltd.
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.L - News) ('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."
Production and Diamond Drilling Results
The trucking of ore from the Ming Mine to the Nugget Pond milling facility is proceeding well and to date over 9,506 tonnes have been moved and stockpiled for processing. With enough supply to sustain steady production, Rambler officially began processing ore on November 28, 2011 with an average throughput of 525 mtpd. The head grade and recovery is in line with test work at 4.29 g/t and 90% respectively.
Presently the stockpiles at Nugget Pond and the Ming Mine contain 3,509 tonnes at an average grade of 4.10 g/t gold with additional ore being trucked from underground on a daily basis. To maintain the inventory and ore feed to the mill, four separate 1806 zone stopes have been developed or planned. There is currently 78,599 tonnes remaining in these stopes that have been blasted, developed, drilled or designed in preparation for processing. While each of these stopes were included in the August 2010 reserve estimate, delineation drilling has shown that this zone extends further up and down plunge than originally modeled, allowing for the possibility of additional stoping levels. As Rambler develops into known parts of the ore body the exploration diamond drilling program will continue testing undrilled areas in search of more mineralization of this calibre.
In 2012, at the appropriate time, Rambler expects to commission the copper concentrator with ore from the Lower Footwall Zone. The Lower Footwall Zone material will be used during commissioning for a number of reasons. Firstly to minimize losses to the tailings pond while the new plant is run and new operators learn the process. Secondly, to use the actual processing results in future engineering studies on the Lower Footwall Zone as opposed to relying on laboratory test work. Once the 'live" commissioning with the Lower Footwall material has been completed Rambler will then switch over to ore from its higher base metal grade 1807 zone which has a resource estimate of 432,000 tonnes at 3.86% copper, 1.75 g/t gold and 7.19 g/t silver. |
