Rambler Continues Strong Performance in Q3 2019

RNS Number : 6939P

Rambler Metals & Mining PLC

14 October 2019

 

14 October 2019

Rambler Continues Strong Performance in Q3 2019

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 quarter ending September 30, 2019 it achieved its highest saleable copper production since Q4 of F2014, at 1,475 dmt. This represents a 17% increase over Q3 of 2018. This was created by a 15% increase in mill throughput and 5% increase in copper head grade compared to the same period a year ago. Saleable gold produced in concentrate also increased by 35% relative to the same period a year ago. 

Q3 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 Q3 2019 vs Q3 2018 (1,160 dry tonnes per day vs 1,012 dry tonnes per day), representing a 15% improvement.

o  Consistently higher rate of copper contained in ore produced in Q3 2019 vs Q3 2018 (17.0 dry tonnes per day vs 14.7 dry tonnes per day), representing a 16% improvement.

·    For the fiscal quarter ending September 30, 2019 the Nugget Pond copper and gold milling facility processed 106,783 dmt at a feed grade of 1.53% copper and 0.59 grammes per tonne gold during Q3 2019 versus 93,128 tonnes at a feed grade of 1.46% copper and 0.54 grammes per tonne gold in Q3 2018.  Daily production during the quarter averaged 1,358 dry tonnes per operating day with a monthly peak of 1,416 dry tonnes per operating day in September.  On August 16, the mill achieved a new one-day record throughput of 1,526 dry tonnes per day. 

·    Recovery of metal to concentrate was 93.9% and 76.0% for copper and gold respectively for the quarter, nearly unchanged from Q3 2018 despite higher throughput.

·    During the quarter, the operation produced 5,212 tonnes of concentrate containing saleable metal of 1,475 tonnes of copper and 1,379 ounces of gold.  Saleable tonnes of copper increased 17% from Q3 2018 and saleable ounces of gold increased 35% from Q3 2018.

Andre Booyzen, President and CEO, commented:

"Our third quarter mine and mill performance has demonstrated the effectiveness of our focus on continuous improvements that were started in late 2018 and still continues. Our staff and contractors are determined to produce safely and exceed production targets. "

"We will keep improving mining production and the average grade of ore produced so that saleable copper production continues to increase, despite some challenging mining conditions encountered in September. Our efforts to develop our people and effect positive cultural changes has continued the positive momentum in our workforce, with sustained low absenteeism and low staff turnover aiding production. Our commitment to local recruitment and training has rewarded us with a stable and dedicated workforce."

"We have completed work ahead of schedule on our new tailings facility and we were depositing tailings at Camp Pond under manual control as of July 18. 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 on August 31. In Q4 we will be replacing some key mining equipment that has reached the end of its useful life, as well as adding to our underground fleet to enable longer hauls as we mine deeper. Q4 will also see us ramping up mill throughput as we see mining rates increase."

Table 1 below summarizes the Ming Copper-Gold Mine's production comparisons against the year-ago quarter in 2018 and Q2 of 2019.  Table 2 outlines the YTD comparisons.

Table 1 - Quarterly and Year-to-Date Production Results

(See Note 1 below)

THROUGHPUT AND RECOVERY	Q3 2018	Q3 2019		Q2 2019	Q3 2019
Dry Tonnes Milled	93,128	106,783	15%	112,679	106,783	-5%
Copper Recovery (%)	97.3	94.0	-3%	93.7	94.0	0%
Gold Recovery (%)	72.5	76.0	5%	68.4	76.0	11%
Copper Head Grade (%)	1.46	1.53	5%	1.40	1.53	10%
Gold Head Grade (g/t)	0.54	0.59	11%	0.60	0.59	-2%
CONCENTRATE PRODUCTION
Copper grade (%)	29.4	29.5	0%	27.2	29.5	8%
Gold grade (g/t)	8.1	9.2	14%	8.6	9.2	8%
Dry Tonnes Produced	4,478	5,212	16%	5,425	5,212	-4%
SALEABLE METAL PRODUCTION
Copper (tonnes)	1,266	1,475	17%	1,417	1,475	4%
Gold (ounces)	1,020	1,379	35%	1,321	1,379	4%

Table 2 - YTD over YTD Results Comparison

(See Note 1 below)

THROUGHPUT AND RECOVERY	YTD 2018	YTD 2019
Dry Tonnes Milled	270,733	317,873	17%
Copper Recovery (%)	96.7	94.6	-2%
Gold Recovery (%)	70.1	71.3	2%
Copper Head Grade (%)	1.22	1.42	16%
Gold Head Grade (g/t)	0.53	0.59	12%
CONCENTRATE PRODUCTION
Copper grade (%)	28.7	27.7	-4%
Gold grade (g/t)	9.1	8.7	-4%
Dry Tonnes Produced	11,122	15,434	39%
SALEABLE METAL PRODUCTION
Copper (tonnes)	3,067	4,099	34%
Gold (ounces)	2,881	3,828	33%

2019 Production GUIDANCE

Andre Booyzen, President and CEO, commented:

"We have demonstrated over the first three quarters of the year that our operations are capable of reaching and exceeding our own throughput expectations. Given the productivity improvements in the mine, which have provided access to better grade material in both the Lower Footwall Zone and the Ming Massive Sulfide deposits, we are now turning our attention to increasing the tonnage and overall feed grade delivered to the mill.

The remainder of 2019 will be an exciting time for us with plans in place to upgrade our lower grade ore and further improve mill feed rates. This is new territory for us, but it will start us on our longer-term journey towards further growth at the operation.

Our progress against guidance targets for 2019 is highlighted in Table 3 below. All targets are on track except for gold grade, which will be assisted by a focus on achieving increased production from the high gold grade massive sulfide orebodies in the final quarter of 2019."

Table 3 - Fiscal 2019 Guidance

THROUGHPUT	Fiscal 2019 Guidance	OnTarget ü Off Target X
Dry Tonnes Milled	400,000 - 450,000	ü
Copper Head Grade (%)	1.30 - 1.50	ü
Gold Head Grade (g/t)	0.70 - 0.90	X
SALEABLE METAL PRODUCTION	Fiscal 2019 Guidance
Copper (tonnes)	5,000 - 6,000	ü
Gold (ounces)	5,000 - 7,000	ü

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'). 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 with a view 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: [phone] Fax No: [phone]	Sanjay Swarup CFO Rambler Metals & Mining Plc Tel No: [phone] Fax No: [phone]	Tim Sanford. P. Eng. Vice President and Corporate Secretary Rambler Metals & Mining Plc Tel No: [phone] Fax No: [phone]
Nominated Advisor (NOMAD)
Ewan Leggat, Caroline Rowe SP Angel Corporate Finance LLP Tel No: [phone]

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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