London, England & Baie Verte Newfoundland and Labrador - Rambler Metals and Mining PLC today reports its 2nd Quarter results for the three months ending 31 January 2009, along with an operations update. The principal activity of the Company is carrying out development and exploration on the Rambler Property, a mineral exploration property located on Newfoundland and Labrador’s Baie Verte Peninsula.
- Following a review by the management and Board of Directors, the operations at the Ming Mine were scaled back in order to preserve working capital ahead of potential project development. As a result, all underground drilling and pre-development work was suspended on January 7, 2009. Therefore a total of 1,846 metres were drilled in exploration during the second quarter compared to 2,419 metres drilled in the same period in 2008. A total of 195 metres of Exploration and Pre-production development was also carried out during the quarter.
- A Titan 24 DCIP and MT survey was completed during July and August 2008 and positive results received during the quarter (see press release dated 22nd January 2009). The data interpretation will generate new targets for exploration and as the ore bodies are open in all directions further exploration activity could ultimately strengthen the economics of the Project.
- Metallurgical testing on the 1807 Zone was completed which included an averaged copper concentrate grade of 29.1% and average copper recovery of 92.4% with a range between 88.4% and 97%. In addition there was defined precious metal recovery of 67.5% Au and 52.5% Ag within the copper concentrate. Further metallurgical testing is planned to optimize the recovery of precious metals, including any “free gold”.
Subsequent Events & Future Operations:
- On 26 February 2009 Rambler released an update to its NI43-101 compliant resource. which is estimated as:
- Measured: 1,151,000 tonnes of ore @ 2.14% Cu, 2.40 g/t Au, 14.11 g/t Ag, 0.78% Zn
- Indicated: 2,500,000 tonnes of ore @ 2.25% Cu, 0.9 g/t Au, 4.97 g/t Ag. 0.21% Zn
- Inferred: 1,498,000 tonnes of ore @ 1.72% Cu, 2.05 g/t Au, 9.36 g/t Ag, 0.63% Zn
- Total (Measured and Indicated): 3,651,000 tonnes of ore @ 2.21% Cu, 1.37 g/t Au, 7.86 g/t Ag, 0.39% Zn
- Rambler is currently conducting underground Engineering Study, mine planning and scheduling, Capital Program, equipment selection and cost estimating for the first five years of the mine where a high grade, low tonnage scenario has been decided. This is contracted to C.S.I. Engineeering and will target the high grade coppergold massives sulphide zones. Once completed Rambler will register the project with the appropriate government agencies to begin the process of environmental registration.
- Rambler is currently engaged in discussions with a number of third parties, which it holds confidentiality agreements with, for the Project Financing. Upon completion of the Project Financing, development and construction activities will begin to bring the Mine into production in 2010.
- Compared to the quarter ending 31 January 2008, net losses increased £96,801 to £332,879 and the loss per share increased from 0.47p to 0.56p. Losses were higher as administration expenses increased £49,874 to £344,792. Administrative staff costs were the primary driver for this change increasing £39,725 to £193,753.
- Interest income was £49,576 lower at £11,062 as a result of lower cash balances and interest rate returns.
- Cash flows used for operating activities increased by £118,927 substantially as a result of increased operating losses. Cash flows used for investing activities reduced by £266,503 primarily as a result of the cost reduction programme. Cash flows used for financing activities reduced by £31,100 to £24,367 reflecting the reduction in capital payments on finance leases expiring in previous periods.
- Total assets which include accumulated deferred exploration expenditures and mine rehabilitation costs increased £2,142,668 to £22,039,892 during the quarter. This increase was substantially due to an exchange gain of £2,413,971 less the loss for the quarter.
- Cash and cash equivalents at the end of the period was £2.3 million and this figure had fallen to £1.9 million as at 17 March 2009.
George Ogilvie, President and Chief Executive Officer, commented:
“Due to the difficult financial climate Rambler made the decision to scale back operations to preserve working capital ahead of potential project development. Despite this targets have been achieved such as the positive metallurgy test work and the updated NI43-101 compliant resource.
We look forward to the completion of the underground Engineering Study in April 2009 which will demonstrate the long term economic viability of the Project. We feel strongly about the Company’s future prospects in the coming year and we also look forward to resuming exploration activity, pre-production development and construction and bringing the Ming Mine into production in 2010.”