RAMBLER COMPLETES NEGOTIATIONS FOR THE SALE AND PURCHASE OF THE NUGGET POND PROCESSING FACILITY
London, England & Baie Verte, Newfoundland and Labrador – Rambler Metals and Mining plc (‘Rambler’) (TSXV: RAB, AIM: RMM) is pleased to announce that it has signed a sale and purchase agreement with Crew Gold Corporation (TSX: CRU) (OSE: CRU) (FWB: KNC) (OTCBB: CRUGF) (‘Crew’) for the Nugget Pond gold processing facility (the ‘Facility’).
The gold milling facility is located on the Baie Verte Peninsula in Newfoundland, just 40 km’s from Rambler’s Ming Mine. The gold concentrator will be adapted to process base metals sulphides from the Ming Mine through the addition of a copper flotation circuit as well as process the ‘free gold’ that exists in the Rambler geological system. The modification will diversify the existing facility and allow for a range of processing capabilities. Crew Gold is currently under contract to toll mill ore from the Pine Cove Gold Mine, which is owned by Anaconda Mining, until June 30, 2010. The expansion of the facility will not impede this contract.
The purchase price for the facility is $3.5 M CDN. Crew Gold will be responsible for maintaining the existing closure bond until such time that the toll milling contract expires whereupon Rambler shall assume this responsibility. The closing date for the purchase will take place within 90 days of the signed agreement and therefore should close on or around December 9, 2009. Under the terms of the agreement Crew Gold will lease the processing facility from Rambler so that the toll milling contract with Anaconda Mining can continue without interruption. During the leasing period Rambler will have full access to the site to complete detailed engineering on the expansion and eventual construction.
Rambler Metals and Mining has recently compiled an internal business plan to develop the existing NI43-101 compliant resource at the Ming Mine. The section of the report concerning the underground operation is already at a feasibility level while the work on surface engineering, including the concentrator, is at a scoping level. With the acquisition of the Nugget Pond facility, the detailed surface engineering can now be completed allowing for a full compliant project evaluation. Considering just the existing measured and indicated massive sulphide resources and an extraction rate of 850 mtpd approximately 7 years of resources are currently available for processing. This has the potential to increase, as all mineralized zones are open in multiple directions. The above plan also excludes the bulk tonnage lower footwall zone that the Company intends to develop once it is in production. The internal business plan will form the basis of the full project evaluation which will be publicly released during the first half of 2010.
George Ogilvie, President and CEO commented;
“The acquisition of the Nugget Pond Mill Facility, a fully operational, permitted Gold Hydrometallurgical mill, moves Rambler another step closer to production and increases the attractiveness of the project. Our Engineering studies to date have shown that the add-on of a copper flotation circuit will be a simple process and the newly expanded facility will also give Rambler the ability to recover the ‘free gold’ that exists in its own geological system. In addition the facility provides Rambler with the option of processing other ore under toll milling contracts. The acquisition greatly improves project economics and looking forward I believe that copper and gold represent the two metals which are likely to provide greatest returns for our shareholders.”
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