Fiscal 2015 Q4 and Yearend Production Results

RNS Number : 3163Y

Rambler Metals & Mining PLC

08 September 2015

 

8 September 2015

Fiscal 2015 Q4 and Yearend 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 Fiscal 2015 Yearend and fourth quarter ending 31 July 2015 ('F2015' and 'Q4/15').

PRODUCTION		Yearend F2015		F2015 Guidance
	Dry Tonnes Milled	215,535		215,000 - 230,000
	Copper Recovery	96.9%		94 - 96%
	Gold Recovery	69.8%		65 - 70%
	Silver Recovery	73.7%		60 - 75%
	Copper Head Grade (%)	2.53		2.5 - 3.5
	Gold Head Grade (g/t)	1.18		1.0 - 2.0
	Silver Head Grade (g/t)	8.68		6.0 - 8.0
CONCENTRATE (Delivered to Warehouse)
	Copper (%)	27.31		27 - 30
	Gold (g/t)	9.87		6 - 8
	Silver (g/t)	73.18		45 - 55
	Dry Tonnes Produced	17,309		20,000 - 24,000
	Copper Metal (tonnes)	4,733		5,400 - 6,700
	Gold (ounces)	5,335		5,600 - 6,600
	Silver (ounces)	39,706		39,000 - 46,000

Highlights OF YEAREND

·     With the Revised Mine Plan implemented in January 2015, the Group has been targeting the lower end of the communicated production guidance.  For the fiscal yearend the operation met most of its planned targets of tonnes milled, recoveries and head grades, however, did fall short on the total planned copper and gold metal production guidance.

·     Mill recoveries of copper, gold and silver showed increases over guidance of 3 per cent, 7 per cent and 23 per cent respectively.  Copper grades of 2.53 per cent, gold grades of 1.18 grammes per tonne were at the lower end of plan. Silver grades of 8.68 grammes per tonne exceeded the plan of 8.00 grammes per tonne.  Total mill throughput for the year was 215,535 dry metric tonnes.

·     Average recoveries for the year to concentrate: copper 96.9 per cent, gold 69.8 per cent and silver 73.7 per cent with a concentrate grade of 27.31 per cent, 9.87 grammes per tonne and 73.18 grammes per tonne for copper, gold and silver respectively.

·     Further details will be announced on or before 28 October 2015 with the release of the complete audited Yearend financial statements.

Highlights FOR THE QUARTER

·     Production of 3,600 tonnes of copper concentrate, representing a 10 per cent decrease over Q3/15.

·     Dry tonnes milled of 59,373 tonnes, representing a 39 per cent increase over Q3/15 and on par with Q4/14, resulting in the production of:

o  960 tonnes of copper (4,733 tonnes for the fiscal year)

o  1,495 ounces of gold (5,335 ounces for the fiscal year)

o  10,742 ounces of silver (39,706 ounces for the fiscal year)

·     Head grades of copper averaged 1.93 per cent for the quarter and 2.53 per cent for the year; gold at 1.22 grammes per tonne for the quarter and 1.18 grammes per tonne for the year; silver at 8.75 grammes per tonne for the quarter and 8.68 grammes per tonne for the year. Some of the high grade ore tonnes originally planned for Q4/15 has been rescheduled into F2016, as per the Revised Mine Plan.  For August (Q1/16) tonnes processed through the copper concentrator averaged 725 mtpd with run of mine feed grade 2.55 per cent copper with 1.39 grammes per tonne gold.   

Norman Williams, CA, President and CEO, commented:

"Despite marginally missing the planned metal production for the fiscal year, we did meet or exceed all other remaining guidance targets. I would like to thank the entire operations team for their outstanding efforts and hard work throughout the year. It has certainly been a challenging year with a declining copper price; but the quick actions taken by Rambler to streamline costs and efficiencies throughout the business has had a beneficial impact.

"We began the 2015 fiscal year knowing that it would be a transitional step forward for the business as we worked towards finalizing the Lower Footwall Zone pre-feasibility study.  With this work now completed, and final results released in July, we are extremely pleased with the staged, low capital expansion strategy to optimize the operation.  With over 20 years of mine reserves available, the Ming Mine has the potential to be a long term stable producer of premium high grade copper concentrates."

OPERATIONAL SUMMARY

For Fiscal 2015 the Company milled 215,535 dry metric tonnes of ore and produced 17,309 tonnes of copper concentrate containing 4,733 tonnes of copper metal, 5,335 ounces of gold and 39,706 ounces of silver.  The average feed grade during this period was 2.53 per cent  copper, 1.18 grammes per tonne gold and 8.68 grammes per tonne silver followed by a mill recovery of 96.9 per cent, 69.8 per cent and 73.7 per cent for copper, gold and silver respectively.

The Company first declared commercial production in November 2012 and has since milled 568,428 dry metric tonnes, producing 56,758 tonnes of copper concentrate containing 16,158 tonnes of copper metal, 15,393 ounces of gold and 116,203 ounces of silver.

The operations have met most of the guidance targets for the fiscal year but did fall short overall on planned copper, gold and silver output, see Table 1 below.  Details of the Company's financial performance, including capital expenditure and operating costs, will be included in its Yearend financial results to be released on or before 28 October 2015.   

Table 1 - Fiscal 2015 Production Guidance - Ore and Concentrate Production

   Summary for Fiscal 2015 (see Note 1 below)

PRODUCTION		Q1 2015	Q2 2015	Q3 2015	Q4 2015	Yearend F2015		F2015 Guidance
	Dry Tonnes Milled	58,546	54,869	42,747	59,373	215,535		215,000 - 230,000
	Copper Recovery (%)	97.1	97.0	97.1	96.6	96.9		94 - 96
	Gold Recovery (%)	69.2	68.1	74.4	68.7	69.8		65 - 70
	Silver Recovery (%)	73.0	71.3	78.9	72.8	73.7		60 - 75
	Copper Head Grade (%)	2.79	2.76	2.71	1.93	2.53		2.5 - 3.5
	Gold Head Grade (g/t)	1.26	1.11	1.12	1.22	1.18		1.0 - 2.0
	Silver Head Grade (g/t)	9.12	8.76	7.88	8.75	8.68		6.0 - 8.0
CONCENTRATE (Delivered to Warehouse)
	Copper (%)	28.52	27.62	26.15	26.66	27.31		27 - 30
	Gold (g/t)	8.98	8.49	8.63	12.92	9.87		6 - 8
	Silver (g/t)	66.11	66.11	64.75	92.80	73.18		45 - 55
	Dry Tonnes Produced	5,072	4,648	3,989	3,600	17,309		20,000 - 24,000
	Copper Metal (tonnes)	1,447	1,284	1,043	960	4,733		5,400 - 6,700
	Gold (ounces)	1,464	1,269	1,106	1,495	5,335		5,600 - 6,600
	Silver (ounces)	10,781	9,878	8,305	10,742	39,706		39,000 - 46,000

Quarter over Quarter (Q4/14 vs Q4/15 and Q3/15 vs Q4/15)

Table 2 - Quarter over Quarter Results Comparison (see Note 1 below)

PRODUCTION		Q4/14 (May, Jun, Jul)	Q4/15 (May, Jun, Jul)		Q3/15 (Feb, Mar, Apr)	Q4/15 (May, Jun, Jul)
	Dry Tonnes Milled	59,526	59,373	0%	42,747	59,373	39%
	Copper Recovery (%)	96.7	96.6	0%	97.1	96.6	-1%
	Gold Recovery (%)	71.0	68.7	-3%	74.4	68.7	-8%
	Silver Recovery (%)	75.9	72.8	-4%	78.9	72.8	-8%
	Copper Head Grade (%)	3.24	1.93	-40%	2.71	1.93	-29%
	Gold Head Grade (g/t)	1.65	1.22	-26%	1.12	1.22	9%
	Silver Head Grade (g/t)	12.60	8.75	-31%	7.88	8.75	11%
CONCENTRATE          (Produced and Stored in Warehouse)
	Copper (%)	28.47	26.66	-6%	26.15	26.66	2%
	Gold (g/t)	10.93	12.92	18%	8.63	12.92	50%
	Silver (g/t)	86.62	92.80	7%	64.75	92.80	43%
	Dry Tonnes Produced	5,999	3,600	-40%	3,989	3,600	-10%
	Copper Metal (tonnes)	1,708	960	-44%	1,043	960	-8%
	Gold (ounces)	2,107	1,495	-29%	1,106	1,495	35%
	Silver (ounces)	16,708	10,742	-36%	8,305	10,742	29%

Fiscal 2016 GuidAnce

Copper production for the 2016 fiscal year is forecast between 4,500 and 6,000 tonnes of metal with forecasts for gold and silver of 5,500 to 6,500 ounces and 42,000 to 57,000 ounces respectively.

PRODUCTION		Fiscal 2016		CONCENTRATE (Produced)	Fiscal 2016
	Dry Tonnes Milled	235,000 - 250,000		Copper (%)	27 - 29
				Gold (g/t)	6.0 - 8.0
	Copper Recovery	94 - 96 %		Silver (g/t)	55 - 75
	Gold Recovery	65 - 70 %
	Silver Recovery	65 - 75 %		Dry Tonnes Produced	17,000 - 21,000
				Copper Metal (tonnes)	4,500 - 6,000
	Copper Head Grade (%)	2.0 - 2.5		Gold (ounces )	5,500 - 6,500
	Gold Head Grade (g/t)	1.0 - 2.0		Silver (ounces)	42,000 - 57,000
	Silver Head Grade (g/t)	6.0 - 10.0

The above guidance incorporates the first year of the Lower Footwall Zone optimization strategy.  This strategy includes blending LFZ ores with the ongoing production from the massive sulphides as described in the Company's pre-feasibility study released in July 2015.

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: [phone] Fax No: [phone]
Stewart Dickson / Jeremy Stephenson / David Porter Cantor Fitzgerald Europe Tel No: [phone]	Tim Blythe/ Megan Ray Blytheweigh Tel No: [phone]

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.

 

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