🕐26.01.10 - 16:54 Uhr
Rambler Investigates the Resource Potential at the Nugget Pond Gold Mine
26th January 2010
RAMBLER INVESTIGATES THE RESOURCE POTENTIAL
AT THE NUGGET POND GOLD MINE
LONDON, ENGLAND and BAIE VERTE, NEWFOUNDLAND and LABRADOR: Rambler Metals &
Mining PLC (TSX VENTURE:RAB) (AIM:RMM) is pleased to announce that,
following the recent purchase of the Nugget Pond gold facility, it will be
investigating the resource potential within the 140L mining lease.
HIGHLIGHTS
Exploration target of 13,000 to 15,000 ounces of gold contained within
50,000 to 66,000 tonnes grading at 7 to 9 g/t gold.
Low capital development and operating costs.
Permitted mill and tailings impound.
Crown pillar amenable to open pit mining methods.
George Ogilvie, President and CEO commented,
The possible uncovering of gold resources at Nugget Pond represents an
exciting opportunity for Rambler.
Over the coming months the Company will
evaluate mining the crown pillar which will have minimal capital
requirements and quick start-up.
With an operating mill onsite and the
present market price of gold Rambler considers Nugget Pond to be an asset of
significant value that could provide some self funding opportunities towards
our Project Financing.
The recent purchase of the Nugget Pond gold facility on the Baie Verte
Peninsula, Northeastern Newfoundland (see Company press release October 27,
2009) has prompted the Company to evaluate the potential of any remaining
resources within the 140L mining lease.
Both the mine and the mill are
located within the 100% owned Nugget Pond Property.
The mill itself is
currently under care and maintenance while the Company finalizes engineering
design for the expansion of a copper floatation circuit.
The Nugget Pond Gold Mine began commercial production in April 1997 at a
milling rate of 350 mtpd and was later optimized to 500 mtpd.
After four
years of profitable operations, production ceased in August 2001 due to
depleting reserves and depressed gold prices.
During operations the deposit
produced a total of 168,748 ounces of gold from 487,765 tonnes of ore
grading approximately 10.76 g/t.
The facility surpassed all expectations by
running continuously at 98% availability with an average recovery of 95%.
Since its initial startup in 1997 the mill has seen ore from three other
gold deposits with almost 1.5 million tonnes of ore processed over its life
to date.
RESOURCE POTENTIAL
Upon review of the digital database compiled during the mines closure,
Rambler has estimated an exploration target of 13,000 to 15,000 ounces of
gold contained within 50,000 to 66,000 tonnes grading at 7 to 9 g/t gold.
Rambler cautions that the estimated tonnes and grade are conceptual in
nature and are based on previous diamond drilling results that defined the
length, thickness, depth and grade of the original resource and reserve
estimate.
Since the initial closure of the mine limited exploration has
been completed on the property and Rambler cautions that there is a risk
that further exploration will not result in the delineation of a new
resource.
The estimated tonnage remaining is contained within the Main Zones, the
Crown Pillar and the Footwall Zone of the mine.
The crown pillar itself
contains between 5,000 and 10,000 tonnes of ore grading between 8 to 9 g/t
Au.
The pillar is easily accessible by way of the underground ramp, which
is now flooded and would require minimal dewatering and rehabilitation,
however the pillar is also amenable to open pit mining and further work
evaluating this scenario is ongoing.
The Footwall Zone, which contains the
bulk of the estimated tonnages, requires additional delineation drilling.
Exploration mining of the Footwall zone occurred on two levels in 2001 and
defined at least 3 contrasting styles of gold mineralization.
Unfortunately
premature closing of the mine and a lack of understanding of controls on
mineralization did not adequately define the strike and extent of the
Footwall Zones.
Zone
Crown Pillar - 5,000 to 10,000 - 8 to 9 g/t - Exploration Target
Main Zone - 5,000 to 6,000 - 8 to 9 g/t - Exploration Target
Footwall Zone - 40,000 to 50,000 - 7 to 8 g/t- Exploration Target
FUTURE PLANS
The exploration target at Nugget Pond is considered by Rambler to be highly
prospective.
With an operating mill onsite, the present market price of
gold and the potential for underexplored resources, Rambler considers Nugget
Pond to be an asset of significant value.
Rambler intends to complete an
engineering and resource study of the Nugget Pond gold deposit to evaluate
the full potential of the property.
The fact that the crown pillar is
accessible from surface and sits within 100m of the mill and primary crusher
should allow for a low capital cost investment, minimal operating costs and
a quick start up.
For further information, please contact:
George Ogilvie, P.Eng.
President and CEO
Rambler Metals and Mining
Canada Limited
Tel No: 709-532-4990
Leslie Little
Company Secretary
Rambler Metals & Mining Plc
Tel No: +44 (0) 14-8341-9942
Nandita Sahgal
Seymour Pierce Limited
Tel No: +44 (0) 20-7107 8000
Guy Wilkes
Ocean Equities Limited
Tel No: +44 (0) 20 786 4370
Chelsea Hayes/Klara Kaczmarek
Pelham Bell Pottinger
Tel No: +44 (0) 20-7337-1523 /20-7337-1524
Website: www.ramblermines.com
Larry Pilgrim, P.Geo.
is the Qualified Person responsible for the technical
content of this release and has reviewed and approved it accordingly.
Mr.
Pilgrim is an independent consultant contracted by Rambler Metals and Mining
plc.
All tonnes are dry metric tonnes.
Grade and tonnages reported are non-NI43-101 compliant and cannot be relied
upon in anyway.
Rambler cautions that there is a risk that further
exploration will not result in the delineation of a new resource.
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.
About the Company
Rambler was founded in 2004 when Altius Minerals Corporation ("Altius"), a
Newfoundland and Labrador based resource company, contributed to the
Companys asset base an option to acquire and develop the Rambler property.
The Ming property had been a former underground copper and gold producing
mine that ceased production when the deposit reached a then third party
property boundary.
This neighbouring property was subsequently consolidated
before being brought into the Company.
The Company now owns a 100% interest
in the property.
Recently, the purchase of the Nugget Pond milling facility has allowed the
company to accelerate its plans to bring the former producing Ming mine back
into production.
The Nugget Pond mill has been in operation as recently as
December 2009 and includes a fully permitted tailings impound.
The principal activity of the Group is carrying out development and
exploration on the Ming Mine Property, a mineral exploration property
located on Newfoundland and Labradors Baie Verte Peninsula.
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