Management at Rambler Metals and Mines say the people of the Baie Verte Peninsula can expect a solid year from the company in 2011.
Management at Rambler Metals and Mines say the people of the Baie Verte Peninsula can expect a solid year from the company in 2011.
Peter Mercer, vice-president of corporate development with the mining company, says they expect to be in operation by the fall of 2011, with construction and development to be ongoing throughout the year.
“We’re right on schedule of our goal of having the mine in operation within five years,” says Mr. Mercer. “It’s quite a treat to see the progress accomplished from the initial drill holes to now - so close to a mine in full operation.”
Rambler operates the Ming Mine site which is located 13 kilometres east of Baie Verte, as well as the Nugget Pond operation which is 40 kilometres from Ming Mine.
The Ming Mine has a history that spans over a couple of decades of mining, but Rambler has discovered new life in the mine and is confident they have hit a significant resource which will mean great things for the area.
In a release from the company last month, they stated they’d completed the final feasibility study for the Ming Mine site which envisages a pre-tax operating cash flow of US$71 million, Net Present Value of US$14.3 million discounted at six per cent, payback of 1.5 years and an Internal Rate of Return of 23.7 per cent over an initial six year life span of mine.
The release goes on to say that the feasibility study was carried out using the commodity prices of copper at US$3 per lbs, gold at US$1000 per oz and silver at US$14.50 per oz, all significantly below current price levels and forecasts. Initial capital costs were projected at US$25.5 million with Sustaining Capital estimated at US$27.9 million.
It’s a lot of numbers, but Mr. Mercer says they’re all extremely positive in the grand scheme of the operation and for the people and workers of the Baie Verte Peninsula.
“We’re sitting on something very promising here,” he said. “The economic benefits for the entire area of the peninsula once this mine is in operation will be amazing.”
Rambler says that officially, the life of the mine is a minimum of six years, employing hundreds of workers over that period. However, further exploration of the site has the company reporting the total life of the mine will be well over ten years.
“It’s not part of the official plan, but we’ve found enough resources to extend the life of the mine well over ten years. Plus, depending on the price of the minerals and how the markets go, it could be even longer than that.”
In a statement issued by president and CEO, George Ogilvie, he said “Development at the Ming Mine and Nugget Pond Mill is well underway and we are extremely pleased with the progress made on site and that the authorities have provided Rambler with environmental and the majority of the regulatory approvals. We will continue to put together an expert team of personnel and ensure all equipment is in place as we aim to bring the Ming Mine into production during 2011.
“We are also pleased to have been able to carry out the toll milling arrangement with Tenacity which demonstrates Rambler’s ability to process additional sources of ore in the Baie Verte Peninsula region.”
In any case, Mr. Mercer continued, he’s excited to see what the year will unfold for the junior mining company.
“2011 will be a big, big year for us, and for the Baie Verte Peninsula,” he said. “But as big as it will be, one thing to realize – this is just the beginning.”