Rambler Continues Strong Performance in H2 2019
6 February 2020
Rambler Continues Strong Performance in H2 2019 and FY 2019
And Provides Guidance for Full Year 2020
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, is pleased to announce that for the fiscal year ended December 31, 2019 it achieved its highest annual saleable copper and gold production since FY2014, at 5,299 tonnes and 4,887 ounces respectively. These figures represent 27% and 17% increases over FY2018 saleable copper and gold respectively. H2 2019 saleable copper and gold totalled 2,675 tonnes and 2,438 ounces, representing a 2% increase and 0.5% decrease compared to H1 2019, and 12% and 5% increases over the same period a year ago respectively. The 2019 annual performance was supported by a 12% increase in mill throughput and 16% and 5% increases in copper and gold head grades compared to the previous year.
H2 2019 and Full Year 2019 Production Summary
· The mining process improvement program begun in mid-2018 and executive management changes since then have resulted in:
o Consistently higher ore production rate in H2 2019 vs H2 2018 (1,061 dry tonnes per day vs 1,014 dry tonnes per day), representing a 5% improvement, and in the full year-over-year figures (1,113 dry tonnes per day vs 998 dry tonnes per day), representing a 12% improvement.
o Consistently higher rate of copper contained in ore mined in H2 2019 vs H2 2018 (16.3 tonnes per day vs 14.0 tonnes per day), representing a 16% improvement, and in the full year-over-year amounts (16.1 tonnes per day vs 12.4 tonnes per day), representing a 30% improvement.
· During H2 2019, the Nugget Pond copper and gold milling facility processed 195,208 dmt at a feed grade of 1.54% copper and 0.59 grams per tonne gold versus 186,571 tonnes at a feed grade of 1.38% copper and 0.60 grams per tonne gold in H2 2018. For the full year, the plant processed 406,298 dmt at feed grades of 1.45% copper and 0.59 grams per tonne gold.
· Recovery of metal to concentrate was 92.8% and 74.0% for copper and gold respectively in H2 2019, nearly unchanged from H2 2018 despite higher throughput. For the full year, metal recoveries were 93.9% and 71.4% for copper and gold respectively.
· During H2 2019, the operation produced 9,702 tonnes of concentrate containing saleable metal of 2,675 tonnes of copper and 2,438 ounces of gold. Saleable tonnes of copper increased 12% from H2 2018 and saleable ounces of gold increased 5% from H2 2018. During 2019, the operation produced 19,924 tonnes of concentrate containing saleable metal of 5,299 tonnes of copper and 4,887 ounces of gold respectively. These figures represent 27% and 17% increases over F2018 saleable copper and gold.
Andre Booyzen, President and CEO, commented:
"The overall improved performance in 2019 has demonstrated the effectiveness of our management changes, and our focus on continuous improvement that was started in mid 2018 and still continues. All of our staff and associates are absolutely committed and determined to continue to produce safely while meeting our production targets."
"Despite some challenging ground conditions encountered in September 2019, we managed to set a new record for our monthly development rate, which when sustained will support growing production at higher grades from more production stopes. Our efforts to develop our people and effect company-wide cultural changes has continued the positive momentum in our workforce. We are still seeing low staff turnover and low absenteeism. Our commitment to local recruitment and training remains, and we have recently stepped this up by utilising external consultants to assist us."
"We achieved our 2019 guidance tonnes of ore mined, copper grade and saleable copper produced. However lower than expected gold grades resulted in less than forecast saleable gold ounces. We expect to see similar lower gold grades in the areas of the ore body we are planning to mine in 2020, and our guidance reflects this.
"During 2019, we completed work ahead of schedule on the new tailings facility and we have been depositing tailings at Camp Pond under manual control since July 2019. The tailings project included some critical control components necessary to sustain milling rates in excess of 1,400 dry tonnes per day and these were in place and operational by the end of August 2019. In the fourth quarter we replaced some key mining equipment that had reached the end of its useful life, as well as added to our underground fleet to enable longer hauls as we mine deeper. We also made some improvements to our plant, enabling us to ramp up throughput as mining rates increase. We also recommissioned our Dense Media Separation (DMS) plant, ready to process lower grade ore, mostly coming from on-ore mine development. All in all, 2019 was a positive year for the operations, and we look forward to building on the success we achieved."
Table 1 below summarizes the Ming Copper-Gold Mine's production comparisons against the year-ago period in 2018 and H1 of 2019. Table 2 outlines the YTD comparisons.
Table 1 - Half-year Production Results
(See Note 1 below)
|
THROUGHPUT AND RECOVERY |
H2 2018 |
H2 2019 |
|
H1 2019 |
H2 2019 |
|
|
Dry Tonnes Milled |
186,571 |
195,208 |
5% |
211,090 |
195,208 |
-8% |
|
|
|
|
|
|
|
|
|
Copper Recovery (%) |
96.2 |
92.8 |
-4% |
94.9 |
92.8 |
-2% |
|
Gold Recovery (%) |
72.4 |
74.0 |
2% |
68.9 |
74.0 |
7% |
|
|
|
|
|
|
|
|
|
Copper Head Grade (%) |
1.38 |
1.54 |
11% |
1.36 |
1.54 |
13% |
|
Gold Head Grade (g/t) |
0.60 |
0.59 |
-2% |
0.59 |
0.59 |
0% |
|
CONCENTRATE PRODUCTION |
|
|
|
|
|
|
|
Copper grade (%) |
28.0 |
28.7 |
3% |
26.7 |
28.7 |
7% |
|
Gold grade (g/t) |
9.2 |
8.4 |
-9% |
8.5 |
8.4 |
-1% |
|
Dry Tonnes Produced |
8,881 |
9,702 |
9% |
10,222 |
9,702 |
-5% |
|
SALEABLE METAL PRODUCTION |
|
|
|
|
|
|
|
Copper (tonnes) |
2,386 |
2,675 |
12% |
2,624 |
2,675 |
2% |
|
Gold (ounces) |
2,328 |
2,438 |
5% |
2,450 |
2,438 |
-1% |
Table 2 - FY2018 over FY2019 Results Comparison
(See Note 1 below)
|
THROUGHPUT AND RECOVERY |
FY2018 |
FY2019 |
|
|
Dry Tonnes Milled |
364,176 |
406,298 |
12% |
|
|
|
|
|
|
Copper Recovery (%) |
96.3 |
93.9 |
-3% |
|
Gold Recovery (%) |
70.7 |
71.4 |
1% |
|
|
|
|
|
|
Copper Head Grade (%) |
1.24 |
1.45 |
16% |
|
Gold Head Grade (g/t) |
0.57 |
0.59 |
5% |
|
CONCENTRATE PRODUCTION |
|
|
|
|
Copper grade (%) |
28.1 |
27.7 |
-1% |
|
Gold grade (g/t) |
9.4 |
8.4 |
-10% |
|
Dry Tonnes Produced |
15,525 |
19,924 |
28% |
|
SALEABLE METAL PRODUCTION |
|
|
|
|
Copper (tonnes) |
4,187 |
5,299 |
27% |
|
Gold (ounces) |
4,189 |
4,887 |
17% |
2020 Production GUIDANCE
Andre Booyzen, President and CEO, commented:
"We demonstrated in 2019 that our operations are capable of reaching and exceeding our own throughput expectations. Our focus in 2020 will be on consistency and to keep building towards our ultimate target of 1,500 tonnes ore processed per day at 2% Copper grade. Productivity improvements in the mine have provided access to better grade material in both the Lower Footwall Zone and the Ming Massive Sulfide deposits, so now we are now turning our attention to increasing the tonnage and overall feed grade delivered to the mill.
2020 will be an exciting year of improvements and change, with the operation of the DMS plant to upgrade our lower grade ore and further improvements in our plant feed rates. Although this is not new territory for us, we need to consolidate our efforts and successes to continue our longer-term journey towards increased, but stable and consistent production and growth at the operation.
Our guidance targets for 2020 are highlighted in Table 3 below. We are forecasting improved performance and output in all areas over the course of the year and our current focus is on sustaining mine and mill production at over 1,350 metric tonnes per day. By the beginning of Q3 2020 we expect to be consistently milling above 1,400 tonnes per day at 2% copper grade, whilst still targeting our ultimate goal of 1,500 tonnes per day."
Table 3 - Fiscal 2020 Guidance
|
THROUGHPUT |
Fiscal 2020 Guidance
|
|
Dry Tonnes Milled |
430,000 - 480,000 |
|
Copper Head Grade (%) |
1.60 - 1.90 |
|
Gold Head Grade (g/t) |
0.50 - 0.605 |
|
SALEABLE METAL PRODUCTION |
Fiscal 2020 Guidance |
|
Copper (tonnes) |
6,000 - 8,500 |
|
Gold (ounces) |
4,000 - 6,000 |
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 = grams 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'). 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.
Following the completion of its recent productivity improvement initiative Rambler's focus is on sustaining mine and mill production at over 1,350 metric tonnes per day at 2% Copper at the Ming Mine. With a return to profitability and positive cash flow, Rambler will continue advancing engineering studies and capital asset additions to further increase production.
Along with the Ming Mine, Rambler also owns 100 per cent of the former producing Little Deer/Whales Back copper mines.
Rambler is listed in London under AIM:RMM.
For further information, please contact:
|
Andre Booyzen President and CEO Rambler Metals & Mining Plc Tel No: +44 (0) 20 8652-2700 Fax No: +44 (0) 20 8652-2719 |
Sanjay Swarup CFO Rambler Metals & Mining Plc Tel No: +44 (0) 20 7096 0662 Fax No: +44 (0) 20 8609 0313 |
Tim Sanford. P. Eng. Vice President and Corporate Secretary Rambler Metals & Mining Plc Tel No: +1 (709) 532 5736 Fax No: +1 (709) 800 1921 |
|
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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