Rambler Announces Production Results for Q2/H121
22 July 2021
Rambler Announces Production Results for Q2 and H1 2021
Investor Call
London, England - Newfoundland and Labrador, Canada - Rambler Metals and Mining plc (AIM: RMM) ("Rambler" or the "Company"), a copper and gold producer, explorer, and developer, announces production results for the fiscal quarter and half year ended June 30, 2021.
Q2 2021 Production Summary
· For the second quarter ended June 30, 2021, the Nugget Pond copper and gold milling facility achieved throughput of 51,514 dmt at a feed grade of 1.44% copper versus 57,357 dmt at a feed grade of 1.64% copper in Q1 2021.
· Recovery of copper metal to concentrate was 94.0% for the quarter (Q1 2021: 96.6%).
· During the quarter, the operation produced 2,502 tonnes of concentrate containing 673 tonnes of saleable copper and 585 ounces of saleable gold (Q1 2021: 3,323 tonnes containing 876 tonnes and 562 ounces of saleable copper and gold respectively).
· Development during the quarter totalled 659 meters, including 418 meters of capital and 241 meters of operating development (Q1 2021: 776 meters including 579 and 197 meters of capital and operating development respectively).
· Delineation diamond drilling in the quarter totalled 4,094 meters drilled in 14 holes (Q1 2021: 1,991 meters drilled in 11 holes in the Lower Footwall Zone ("LFZ")), with all holes drilled into the LFZ.
Toby Bradbury, President and CEO, commented:
"While there was significant progress on the path to redevelopment of the Ming Mine through the quarter, it was not without its challenges. The reliance on cash-flow from production to provide supplementary funding for development work, at a time when production was inherently at higher risk, was exposed.
Notwithstanding, a significant amount of work was completed during the quarter and Rambler remains well positioned with a valuable copper resource in one of the best mining jurisdictions in the world.
The recent closing of financing with Riverfort Global Opportunities PCC Limited and YA II PN Ltd and the signing of the binding term sheet with Newgen Resource Lending Inc., will give the Company the financial resources it needs to support and complete the recovery of the Ming Mine, and provides contingency in the event that higher risk production does not materialise as planned. Risk in this context relates to the optionality around mining locations which has been limited to just one through most of this year. This will be mitigated with mine development providing access to multiple stoping locations by the end of 2021. The mine development contract that has commenced is an important part of this mitigation.
We remain confident that by year-end, we will have a mine capable of sustainably utilising the Nugget Pond Mill capacity which will serve as a platform for further optimisation and growth."
Q2 2021 Production Results
Table 1 below summarizes the Ming Copper-Gold Mine's production and development results for the last 5 quarters going back to Q2 2020. Please note that the operational performance forecasts as announced on 30 June 2021 were prepared in the week prior to publication. During this week, the decision was taken to defer production into July, explaining the difference of 7,289 tonnes milled in H1 2021 versus the forecast. The guidance for the full year and 2022 remains unaffected.
Table 1 - Q uarterly mine development and production results for the last five quarters
(See Note 1 below)
|
|
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
|
MINE DEVELOPMENT |
|
|
|
|
|
|
Capital development (m) |
403 |
157 |
371 |
579 |
418 |
|
Operating development (m) |
265 |
199 |
260 |
197 |
241 |
|
Total development (m) |
668 |
356 |
631 |
776 |
659 |
|
THROUGHPUT AND RECOVERY |
|
|
|
|
|
|
Dry Tonnes Milled |
63,127 |
54,232 |
60,963 |
57,357 |
51,514 |
|
|
|
|
|
|
|
|
Copper Recovery (%) |
95.8 |
94.5 |
95.4 |
96.6 |
94.0 |
|
Gold Recovery (%) |
62.9 |
63.8 |
67.7 |
66.0 |
65.7 |
|
|
|
|
|
|
|
|
Copper Head Grade (%) |
1.54 |
1.50 |
1.63 |
1.64 |
1.44 |
|
Gold Head Grade (g/t) |
0.61 |
0.55 |
0.62 |
0.55 |
0.61 |
|
CONCENTRATE PRODUCTION |
|
|
|
|
|
|
Copper grade (%) |
26.5 |
28.1 |
25.9 |
27.4 |
27.9 |
|
Gold grade (g/t) |
6.9 |
6.9 |
7.0 |
6.3 |
8.3 |
|
Dry Tonnes Produced |
3,499 |
2,735 |
3,666 |
3,323 |
2,502 |
|
SALEABLE METAL PRODUCTION |
|
|
|
|
|
|
Copper (tonnes) |
898 |
744 |
917 |
876 |
673 |
|
Gold (ounces) |
668 |
519 |
703 |
562 |
585 |
Development during the quarter improved in relation to 2020 but was affected by staff and equipment availability which continues to improve through the remediation program. Copper recovery was impacted by an inconsistent ore supply resulting in inefficiency in the mill which also continues to improve. Each of these issues are short term.
Redevelopment Achievements for the Quarter:
· A second diamond drill has been mobilised to the underground mine to assist with completion of the delineation program and commence the exploration drilling program in Q3 2021;
· Drill core from the delineation drilling program has been submitted for geotechnical testwork and analysis to assist in production stope design and mining method selection going forward;
· Upgrade of the underground power distribution system including:
o isolating the mine's exhaust fan system to draw power from a separate electrical feed;
o upgrades to the mine's main surface transformer and electrical cables;
o planned maintenance and adjustments on the entire underground electrical system to synchronize with the surface upgrades;
· Establishment of two return airways for ventilation and one second egress raise in preparation for production from the 510 level in the LFZ;
· Upgrades to the underground ventilation system in preparation for contractor development in the LFZ Block 6 area;
· Received and inspected all contractor equipment including 1 jumbo, 1 scoop, 1 scissor deck and 2 personnel carriers;
· Received and commissioned 2 scoops and 3 personnel carriers for the Company;
· Engineered and completed upgrades to the waste water treatment process to maintain compliance in response to a regulated change in effluent discharge criteria effective June 2021;
· Continued with remediation planning and maintenance at the milling facility in preparation for a steady increase in mill throughput for the remainder of the year. Work completed includes:
o Filter press rebuild;
o Repair of flotation cells;
o Upgrade to compressed air system;
o Building upgrades and repairs including more efficient lighting throughout;
o Upgrades and repairs to the Nugget Pond electrical supply pole line;
o Repairs to the microwave plasma assaying unit;
o Replaced ball and SAG mill lifters and liners;
o Completed NDT testing on all critical components;
o Upgrades to the decant and reclaim water system;
o Replenished inventory and critical spare components.
· Secured and mobilized a contractor for construction of a tailings dam raise at Nugget Pond rescheduled from 2020 and which will be completed in Q3 2021;
· Site preparations completed for the installation of a spare emergency generator to be installed during a planned mill maintenance shutdown in Q3 2021;
· While Rambler is predominantly a residential mine with the majority of employees living in the local communities, the Company is establishing a camp at the mine site to accommodate people with skills that are not currently available locally, including the mine development contractors. Site preparation work was commenced in the quarter and commissioning is expected in August 2021. This also forms part of a Covid mitigation strategy;
· As part of the long-term focus that Rambler represents and to enhance our attractiveness as an employer, we implemented a retirement plan to which the Company makes a co-contribution and we have reviewed remuneration and a largely self-funded incentive arrangement to enable us to attract and retain the best employees;
· During Q2 the Company experienced high turnover within the underground workforce impacting production and development to a degree. In response Rambler has initiated the development of an Underground Common Core training program to assist with the training and development of the local work force. The Company is planning the first training session in August 2021. Key vacancies have been managed with the use of contractors;
· The Company currently employs 219 employees and has 38 contractors providing services at the operation, up from 168 employees and 24 contractors at the start of the year;
· Table 2 below details the delineation drilling accomplished during the first half of 2021 and planned drilling for H2 2021. Assay results are still arriving from the drilling completed. The reduction from previous drilling meters targeted for the year is a result of the contractors difficulty in staffing the second drill rig which is now resolved;
· The Company is evaluating options for an on-site independent laboratory to minimize assay turnaround time;
Table 2 - D elineation drilling: actual and planned activities for 2021
|
Delineation Drilling |
# Holes / Meters |
|||
|
Zone |
Q1 2021 |
Q2 2021 |
H2 2021 |
Total |
|
LFZ |
11 / 1,991 |
14 / 4,094 |
12 / 3,000 |
37 / 9,085 |
|
MMS |
0 / 0 |
0 / 0 |
15 / 4,000 |
15 / 4,000 |
|
Total |
11 / 1,991 |
14 / 4,094 |
27 / 7,000 |
52 / 13,085 |
· An update (upgrade) of the NI 43-101 resource statement for Little Deer and Whalesback deposits (now referred to as the Little Deer Complex), located near Springdale, NL, was released on 12 July 2021 as the Company prepares to unlock value from these assets;
· The Company selected an enterprise resource planning ("ERP") system and engaged Deloitte LLP for ERP implementation which is expected to be completed by Q4 2021. Implementation has commenced.
· Ore sorting facility design work is progressing with the consultant engaged;
Tables 3, 4, and 5 below detail the results achieved by ore sorting in bulk sample testing. Key findings are:
· 18% of ROM material is rejected as waste which will not need to be hauled to the plant, processed, or put into tailings;
· An economic determination will be made as to how to handle the middlings fraction and whether it will be better to process this material with the product or combine it with the waste reject. There is a potential third option to stockpile this material until a new mill has been built at the mine site.
Table 3: Combined LFZ and MMS copper ore sorting test work mass split results (as a % of ROM)
|
|
ROM |
M ass Split (% of ROM ) |
|||
|
Size Fraction |
Mass % |
Waste |
Middlings |
Product |
Total |
|
+75-100mm |
16% |
23% |
11% |
67% |
100% |
|
+50-75mm |
17% |
32% |
10% |
57% |
100% |
|
+25-50mm |
19% |
30% |
15% |
55% |
100% |
|
+12-25mm |
13% |
25% |
12% |
63% |
100% |
|
-12mm (fines) |
35% |
0% |
0% |
100% |
100% |
|
Total |
100% |
18% |
8% |
74% |
100% |
Table 4: Combined LFZ and MMS copper ore sorting test work mass split results (as a % of feed to sorter)
|
|
ROM |
M ass Split (% of feed to sorter ) |
|||
|
Size Fraction |
Mass % |
Waste |
Middlings |
Product |
Total |
|
+75-100mm |
16% |
5% |
3% |
16% |
24% |
|
+50-75mm |
17% |
8% |
3% |
15% |
26% |
|
+25-50mm |
19% |
9% |
4% |
16% |
30% |
|
+12-25mm |
13% |
5% |
2% |
13% |
21% |
|
-12mm (fines) |
35% |
0% |
0% |
0% |
0% |
|
Total |
100% |
28% |
12% |
60% |
100% |
· All copper assays have been received back from the bulk sample ore sorting test results (shown below). Complete gold and silver assays are still awaited but the copper results confirm the viability of this project. The results are encouraging and show upgrade factors for copper to be 24% for the LFZ and 36% for the MMS material, with a combined upgrade factor of 29%. Gold and silver assays will be reported in due course.
Table 5: Combined LFZ and MMS copper ore sorting test work grade and recovery results to date
|
|
Copper Grades (%) |
Copper Recovery (%) |
Copper Upgrade (%) |
|||
|
Size Fraction |
Waste |
Middlings |
Product |
Total |
Product |
|
|
+75-100mm |
0.28 |
0.43 |
3.40 |
2.37 |
95.3% |
43% |
|
+50-75mm |
0.33 |
0.54 |
3.33 |
2.07 |
92.1% |
60% |
|
+25-50mm |
0.27 |
0.52 |
3.18 |
1.91 |
91.6% |
66% |
|
+12-25mm |
0.19 |
0.47 |
2.99 |
1.99 |
94.8% |
50% |
|
-12mm (fines) |
* |
* |
2.06 |
2.06 |
100.0% |
0% |
|
Total |
0.28 |
0.49 |
2.69 |
2.07 |
95.7% |
29% |
Notes to Table 5:
*: All fines are screened prior to the ore sorter and report to the product stream.
Plans for the next half year:
· Complete the financing with Newgen Resource Lending Inc.;
· Contract development of 1,600 meters in Block 6 of the LFZ to open up ore availability from 2022. The mine development contractors (Vanguard Mining Corp. of Timmins, Ontario) have commenced their operations in July. Rambler is providing a 48-person camp on the mine site to accommodate both these contractors as well as other employees who travel to site at regular intervals. Additional office space has also been procured and is being set in place ;
· Re-profiling of the main haulage ramp has commenced in specific areas to allow for full loading of the haulage trucks and to remove tight spots;
· Company development crews will continue to develop in the massive sulphide zones;
· Production ramp-up will occur in a planned fashion over Q3 and Q4 with the target of full utilization of the processing plant by end of year 2021;
· Further new mining equipment (1 underground haulage truck and 1 scoop) is expected to arrive on site over the next six months;
· Implementation of the ERP system will be completed;
· Complete the engineering and begin procurement and construction of the ore sorting plant subject to feasibility;
· Exploration drilling is planned to commence in Q3 2021 and the below table displays the planned holes and meters by zone;
Table 6 - Explor ation drilling: actual and planned activities for 2021 (Delineation drilling detailed in Table 2)
|
E xplora tion Drilling |
# Holes / Meters |
|||
|
Zone |
Q1 2021 |
Q2 2021 |
H2 2021 |
Total |
|
LFZ |
0 / 0 |
0 / 0 |
5 / 1,1 15 |
5 / 1,1 15 |
|
MMS |
0 / 0 |
0 / 0 |
5 / 1,000 |
5 / 1,000 |
|
Total |
0 / 0 |
0 / 0 |
10 / 2,115 |
10 / 2,115 |
· Complete construction of the tailings dam lift at Nugget Pond;
· Rambler will hold the Company's first Family Day activities in support of the local community and workforce on 7 August 2021;
· H1 financials will be released in due course.
Investor Call
An Investor call is scheduled to take place via Zoom, with details listed below:
You are invited to a Zoom meeting.
When: 23 July 2021, 2:00 PM London time, 9:00 AM EST
Please register in advance for this meeting:
https://us06web.zoom.us/meeting/register/tZEtc-mhrTsiG9axXtQ51KymU5c4OTE8z46P
After registering, you will receive a confirmation email containing information about joining the meeting.
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.
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.
Abbreviations:
g/t = grammes per tonne
dmt = dry metric tonnes
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') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
ABOUT RAMBLER METALS AND MINING
Rambler is a mining and development company that in November 2012 brought its first mine into commercial production. Rambler 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.
Rambler's focus is to regain its production profile at 1350 metric tonnes per day at 2% Cu by the end of 2020 and evaluate expansion opportunities from that base.
Along with the Ming Mine, Rambler also owns 100 per cent of the former producing Little Deer Complex.
Rambler is listed in London under AIM:RMM.
For further information, please contact:
|
T oby Bradbury President and CEO Rambler Metals & Mining Plc Tel No: +1 (709) 8 00 1929 Fax No: +1 (709) 8 00 1 921 |
Eason Chen CFO Rambler Metals & Mining Plc Tel No: +1 (709) 800 1929 Fax No: +1 (709) 800 1921 |
T im Sanford. P. Eng. Vice President and Corporate Secretary Rambler Metals & Mining Plc Tel No: +1 (709) 532 5736 Fax No: +1 (709) 8 00 1 921 |
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Nominated Advisor (NOMAD) |
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Ewan Leggat, Caroline Rowe SP Angel Corporate Finance LLP Tel No: +44 (0) 20 3470 0470 |
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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.
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