Reserves Update

RNS Number : 6122G
Rambler Metals & Mining PLC
05 March 2018
 

5 March 2018

Rambler Updates Reserves at its Producing Canadian Copper & Gold Mine

Demonstrating a Profitable 20 Year Mine Life

 

London, England & Baie Verte, Newfoundland and Labrador, Canada - Rambler Metals and Mining plc, a Canadian copper and gold producer, explorer and developer (TSXV: RAB, AIM: RMM) ("Rambler" or the "Company") today reports that it has completed a new mineral resources and reserves estimate for the Ming copper-gold mine in Newfoundland and Labrador, Canada. Contained copper in the mineral reserves is estimated at 329 million pounds with gold of 114 thousand ounces, fully replacing reserves after two years of mining. Mineral resource tonnes (M+I) have declined from the 2015 estimate by 18%, however, the copper grade has improved 9% and gold grade by 14%. The change in measured and indicated resources is a result of an extensive diamond drilling program in an underexplored area of the Lower Footwall Zone.  

The mineral resource and reserve estimations were performed by WSP Consultants, an independent third party, and will be documented in a NI43-101 Technical Report to be filed on SEDAR within 45 days of this release.  The effective date of the reserve estimate is January 1, 2018 and the resource estimate is September 1, 2017. All currency is expressed in US dollars (USD) unless otherwise noted. The estimation was based on long term metal pricing of $2.99 per pound of copper, $1300 per ounce of gold and $17 per ounce of silver with a USD:CAD exchange rate of 1:0.80.

 

Norman Williams, President and CEO of Rambler, commented:

"The updated NI43-101 Technical Report documents the twenty year reserve mine life and expected financial outcomes of the Ming Copper-Gold Mine, operating at an average of 1,250 metric tonnes of ore mined and processed per day ('mtpd'). We expect to be able to sustain production at 1,250 mtpd after completion of the ventilation upgrade later in March, 2018. The Nugget Pond milling facility has proven that it can maintain the target throughput at the planned recovery rates and in January it achieved record throughput of 1,360 mtpd over a twenty four hour period.

"Once the ventilation upgrade is complete, our attention will turn towards optimizing production at the reserve grade to further reduce costs to the 1,250 mtpd optimized design. The focus of the cost improvement efforts will be; maintenance practice improvements to increase equipment availability in the mine; cycle time improvements for improved productivity in the mine; improving grade control and upgrading low grade material by crushing, screening and possibly dense media separation; rehabilitating the shaft for reduced haulage cost as mining proceeds deeper; and improving gold and silver recovery in the plant.

"Given the exceptional surface exploration drill results reported for the Lower Footwall Zone, which are several hundred meters down plunge of the current mining front, we are also planning on accelerating our exploration efforts. These drill intersections, which are outside of the resource model, confirm that the mineralization in the LFZ improves in grade and continuity at depth. As we complete the 1,250 mtpd expansion and move into positive cash flow, we will continue to evaluate resource, reserve, and production expansion opportunities to improve upon the life-of-mine reported here."

 

 



 

Table 1: Mineral Reserve Estimate Summary for the Ming Copper-Gold Mine* 

Classification

Quantity

Grades

Contained Metal

tonnes 

Copper

Gold

Silver

Copper

Gold

Silver

%

g/t

g/t

M lbs

K oz

K oz









Total Proven Reserve

3,452,600

1.87

0.44

3.05

143

49

338

(undiluted, unrecovered)








Total Probable Reserve

4,968,500

1.81

0.44

3.13

198

71

500

(undiluted, unrecovered)








Dilution (all sources)

1,263,100

0.64

0.06

0.73

18

2

30









Reserve (diluted and recovered)

8,715,800

1.71

0.41

2.98

329

114

835

 

* All figures are rounded to reflect the accuracy of the estimate; numbers may not total due to this rounding. This reserve statement reflects changes to reserves in the massive sulphides based on depletion due to mining and additions due to new exploration drilling results. The NSR for the reserve material was calculated using an all-in cost of $72 per tonne of ore milled.

 

Commodity prices for 2018 are reflective of the Company's fiscal forecast; $3.06 per pound copper, $1,305 per ounce of gold and $17.65 per ounce of silver. Long term metal prices of USD$2.99 per pound copper, USD$1300 per ounce gold and USD$17.00 per ounce silver with a long term USD/CDN FX rate of 1:0.80.

 

 

 

Table 2: Mineral Resource Estimate Summary for the Ming Copper-Gold Mine* (Resources are inclusive of reserves)

Classification

Quantity

Grades

Contained Metal


Copper

Gold

Silver

Copper

Gold

Silver

('000) t

%

g/t

g/t

M lbs

K oz

K oz










Measured Total

 

19,323

1.60

0.25

2.31

682.8

156.3

1,438.5









Indicated Total

 

4,120

1.83

0.62

3.50

166.4

82.2

463.8









M&I Total

 

23,448

1.64

0.32

2.52

849

239

1,902









Inferred Total

 

2,873

1.78

0.42

2.78

113

39

256

*Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the accuracy of the estimate.  Cut‐off grades of 1.0% copper for the massive sulphides, 1.25 grams per tonne gold for any gold zones and 1.00 % copper for the stringer sulphides have been used in the estimate. 

 

Cut‐offs are based on an NSR model and forecast long term metal prices of USD$2.99 per pound copper, USD$1,300 per ounce gold and USD$17.00 per ounce silver with a long term USD/CDN FX rate of 1:0.80.

 

 

 



 

 

LIFE OF MINE PRODUCTION, COST AND FINANCIAL HIGHLIGHTS

 

·     

·     

·     

·     

·     

 

 

NI43-101 Technical Report Notes

The LOM envisages steady state production from 2018 onwards with majority of the planned tonnage coming from longhole bulk mining of the LFZ. Paste backfill augmented with waste rock from underground development will be the primary filling mechanism with access to each of the zones made possible through existing and new development with extensions to existing ramps and raises.

 



 

 

 

Tim Sanford, P.Eng., is the Qualified Person responsible for the technical content of this release and has reviewed and approved it accordingly. Mr. Sanford is an employee of Rambler Metals and Mining Canada Limited.  Tonnes referenced are dry metric tonnes unless otherwise indicated.

The NI43‐101 technical report has been complied by a number of independent, third party, consultants. Including:

Joanne Robinson, P.Eng., WSP Canada Inc.: Project economics;

Dean Thibault, P.Eng., Thibault & Associates Inc.: Metallurgical processing;

James Powell, P. Eng., Gemtec Consulting Engineering and Scientist Limited: Environmental;

Aubrey Sargeant, P.Eng., WSP Canada Inc.: Reserve Estimation and mining methodology;

Todd McCracken, P.Geo., WSP Canada Inc.: Resource estimation;

Sébastian Bertelegni, P.Eng., WSP Canada Inc.: Civil and Structural

 

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.

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

Rambler is dual listed in London under AIM:RMM and in Canada under TSX-V:RAB.

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, Corporate Secretary

Rambler Metals & Mining Plc

Tel No: +44 (0) 20 8652-2700

Fax No: +44 (0) 20 8652-2719

Nominated Advisor (NOMAD)

Investor Relations

David Porter

Cantor Fitzgerald Europe

Tel No: +44 (0) 20 7894 7000

Nicole Marchand Investor Relations

Tel No: 416- 428-3533

Nicole@nm-ir.com

 

Website: www.ramblermines.com 

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.

APPENDIX 1 - Mineral Reserve and Mineral Resource Statements

 

Table 3: Mineral Reserve Estimate for the Ming Copper-Gold Mine - January 1, 2018 

Classification

Quantity

Grades

Contained Metal


Copper

Gold

Silver

Copper

Gold

Silver

tonnes

%

g/t

g/t

M lbs

K oz

K oz

















MMS - Total Proven Reserve

 

503,600

2.00

2.52

13.49

22

41

218

LFZ - Total Proven Reserve

2,949,000

1.85

0.08

1.26

120

8

120

(undiluted, unrecovered)








TOTAL

3,452,600

1.87

0.44

3.05

143

49

338









MMS - Total Probable Reserve

724,700

2.00

2.52

13.49

32

59

314

LFZ - Total Probable Reserve

4,243,800

1.78

0.09

1.36

166

12

185

(undiluted, unrecovered)








TOTAL

4,968,500

1.81

0.44

3.13

198

71

500









MMS - Dilution (all sources)

184,200

0

0

0

-

-

-

LFZ - Dilution (all sources)

1,078,900

0.75

0.07

0.86

19

2

30

TOTAL

1,263,100

0.61

0.06

0.70

17

2

28









Total MMS Reserve (diluted and recovered)

1,271,300

1.74

2.19

11.73

49

89

480

Total LFZ Reserve (diluted and recovered)

7,444,500

1.71

0.10

1.48

280

25

355









Combined Total Reserve

(diluted and recovered)

8,715,800

1.71

0.41

2.98

329

114

835

 

Mineral Reserve Notes

All figures are rounded to reflect the accuracy of the estimate; numbers may not total due to this rounding. This reserve statement reflects changes to reserves in the massive sulphides based on depletion due to mining and additions due to new exploration drilling results. The NSR for the reserve material was calculated using an all-in cost of $72 per tonne of ore milled.

 

Commodity prices for 2018 are reflective of the Company's fiscal forecast; $3.06 per pound copper, $1,305 per ounce of gold and $17.65 per ounce of silver. Long term metal prices of USD$2.99 per pound copper, USD$1300 per ounce gold and USD$17.00 per ounce silver with a long term USD/CDN FX rate of 1:0.80.

 

Mineral Resource Notes

Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the accuracy of the estimate.  Cut‐off grades of 1.0 % copper for the massive sulphides, 1.25 grams per tonne gold for any gold zones and 1.00 % copper for the stringer sulphides have been used in the estimate. 

 

Cut‐offs are based on an NSR model and forecast long term metal prices of USD$2.99 per pound copper, USD$1,300 per ounce gold and USD$17.00 per ounce silver with a long term USD/CDN FX rate of 1:0.80.  Resources are inclusive of reserves.



 

Table 4: Mineral Resource Estimate for the Ming Copper-Gold Mine - September 1, 2017 (Resources are inclusive of reserves.)

Resource

Classification

Cutoff

Quantity

Grades

Contained Metal


Copper

Gold

Silver

Copper

Gold

Silver

(000't)

%

g/t

g/t

M lbs

oz

 oz










Measured









1807 Zone

1.00 % Cu

488

2.29

2.54

19.45

24.6

39,830

305,445

1806 Zone

1.25 g/t Au

185

0.40

3.00

14.74

1.6

17,830

87,663

Ming South

1.00 % Cu

353

2.21

2.50

15.27

17.2

28,327

173,282

Ming North

1.00 % Cu

192

1.96

1.88

13.83

8.3

11,581

85,313

Unmined Levels

--

--

--

--

--

--

--

--

Remnant Pillars

--

--

--

--

--

--

--

--

Sub-Total Massive Sulphides

1,218

1.93

2.49

16.64

51.7

 

97,567

651,703










Lower Footwall

1.00 % Cu

18,110

1.58

0.10

1.35

631.1

 

58,765

786,787

Sub-Total Stringer Sulphides

 

18,110

1.58

0.10

1.35

631.1

 

58,765

58,765










 Combined Measured Total

 

19,328

1.60

0.25

2.31

682.8

156,333

1,438,490










Indicated









1807 Zone

1.00 % Cu

83

1.72

2.51

18.86

3.1

6,683

50,239

1806 Zone

1.25 g/t Au

65

0.71

2.87

16.01

1.0

6,029

33,650

Ming South

1.00 % Cu

333

2.21

2.38

14.26

16.3

25,515

152,914

Ming North

1.00 % Cu

140

1.88

1.99

14.45

5.8

8,959

65,239

Unmined Levels

--

125

2.43

1.99

--

6.7

7,989

--

Remnant Pillars

--

259

3.96

2.00

--

22.6

16,656

--

Sub-Total Massive Sulphides

1,006

2.51

2.22

9.34

55.6

71,832

302,043










Lower Footwall

1.00 % Cu

3,114

1.62

0.10

1.62

110.9

10,392

161,722

Sub-Total Stringer Sulphides

 

3,114

1.62

0.10

1.62

110.9

10,392

161,722










 Combined Indicated Total

 

4,120

1.83

0.62

3.50

166.4

82,224

463,765










Measure and Indicated Combined







1807 Zone

1.00 % Cu

571

2.21

2.53

19.37

27.8

46,513

355,684

1806 Zone

1.25 g/t Au

250

0.48

2.96

15.07

2.6

23,859

121,314

Ming South

1.00 % Cu

687

2.21

2.44

14.78

33.4

53,842

326,196

Ming North

1.00 % Cu

332

1.93

1.92

14.09

14.1

20,540

150,552

Unmined Levels

--

125

2.43

1.99

--

6.7

7,989

--

Remnant Pillars

--

259

3.96

2.00

--

22.6

16,656

--

Sub-Total Massive Sulphides

2,224

2.19

2.37

13.34

107.3

 

169,399

953,746










Lower Footwall

1.00 % Cu

21,224

1.59

0.10

1.39

742.0

69,157

948,509

Sub-Total Stringer Sulphides

 

21,224

1.59

0.10

1.39

742.0

69,157

948,509










 Combined Measured & Indicated Total

 

23,448

1.64

0.32

2.52

849.3

238,557

1,902,255










Inferred









1807 Zone

1.00 % Cu

122

1.72

1.19

7.68

4.6

4,690

30,254

1806 Zone

1.25 g/t Au

149

0.66

2.63

10.67

2.2

12,576

51,100

Ming South

1.00 % Cu

264

2.25

0.78

3.24

13.1

6,648

27,429

Ming North

1.00 % Cu

290

1.84

0.71

3.71

11.8

6,638

34,623

Unmined Levels

--

--

--

--

--

--

--

--

Remnant Pillars

--

--

--

--

--

--

--

--

Sub-Total Massive Sulphides

825

1.74

1.15

5.40

31.7

 

30,553

143,407










Lower Footwall

1.00 % Cu

2,048

1.80

0.12

1.72

81.3

8,219

112,984

Sub-Total Stringer Sulphides

 

2,048

1.80

0.12

1.72

81.3

8,219

112,984










 Combined Inferred Total

 

2,873

1.78

0.42

2.78

113.1

38,772

256,391

 



 

APPENDIX 2: Summary of updated NI43-101 Technical Report

Table 5: Project Economics

Item

Value $CDN

Value $USD




Copper produced (million lbs)

312

312

Gold produced (ozs)

57,000

57,000

Silver Produced (ozs)

210,000

210,000

Mine Life (2018 to 2037)

20 Years

20 Years

Net Revenue (million)

 

$1,265

$ 1,011

Net Cash Flow from Operations (million)

$347

$ 277

Total Capital Cost (Over LOM, million)

$150

$ 120

Net Cash Flow (before tax, million)

 

$244

 $ 195

Net Cash Flow (after tax, million)

$197

$ 157

Net Present Value-before tax ( 7% discount, million)

$125

$ 100

Net Present Value-after tax ( 7% discount, million)

$104

$ 83

Internal Rate of Return-before tax ("IRR")

--%

--%

Internal Rate of Return-after tax ("IRR")

--%

--%

Table 6: Summary of Economic Parameters

Item

Value $CDN

Value $USD

Average Copper Price ($USD per lbs)

$3.74

$ 2.99

Average Gold Price ($USD per oz)

$1,626

$ 1,301

Average Silver Price ($USD per oz)

$21.38

$ 17.10

Average $USD/$CDN Exchange Rate

1:0.80

1:0.80




5 Year Project Capital Plan

(million)

(million)

Mill Site

 

$1.86

$ 1.47

Mine Site Surface

$8.29

$ 6.63

Mine Underground and In-directs

 

$39.81

$ 31.80

Port Site

Nil

nil

Contingency

$7.14

$ 5.70

Total (million)

$ 57.10

$ 45.60

5 Year Net Cash (undiscounted)

(million)

(million)

F2018

$9.80

$ 7.71

F2019

$7.16

$ 5.73

F2020

($11.55)

($ 9.24)

F2021

$8.53

$ 6.83

F2022

$4.61

$ 3.69

Total 5 Year Cash (million)

$18.56

$ 14.72

Operating Costs ($USD per tonne milled)



Mining

 

$39.42

$ 31.51

Ore Haulage to Mill

$9.15

$ 7.31

General & Administration

$15.82

$ 12.65

Sub-total

$64.39

$ 51.47

Processing

$16.03

$ 12.81

Concentrate shipping, treatment & refining

 

$13.47

$10.77

Port Operations

$0.55

$ 0.44

Royalties

$1.98

$ 1.58

Total (per tonne milled)

$96.42

$ 77.08

C1 - average LOM

$2.48

$1.98

All in cash - average LOM (pre/ after-tax)

$2.96 / $3.11

$2.37 / $2.49

Other Parameters


Mining Dilution (MMS, LFZ)

30%, 15%

Recovery (Stopes, Drifts)

90%, 100%

Mill Recoveries MMS (Cu, Au, Ag)

96.5%, 65.0%, 60.0%

Mill Recoveries LFZ (Cu, Au, Ag)

98.9%, 63.6%, 62.0%

Concentrate Grade (Cu)

28.5%

 

 

 

 

 

 

 

 

 

 

 


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