core sector communique

Environmental Registration Filed for

Mining of Nugget Pond’s Crown Pillar

 

London, England & Baie Verte, Newfoundland and Labrador – Rambler Metals and Mining plc (TSXV: RAB, AIM: RMM) (‘Rambler’ or the ‘Company’) is pleased to announce that on December 20, 2010 the Company officially submitted the environmental registration for the mining of the Nugget Pond Crown Pillar, located less than 150 metres away from its gold hydromet processing facility.

The Company is also pleased to announce that it recently completed processing a bulk sample for Crosshair Exploration and Mining Corp. (TSX: CXX, NYSE Amex: CXZ) (‘Crosshair’) with ore from its Golden Promise Project.

HIGHLIGHTS

• The crown pillar contains an historical resource of approximately 8,100 tonnes of ore grading 7.7 g/t of gold equating to 2005 troy ounces in-situ. An open pit mining method is planned.
• All ore processing will be completed at the Company’s own Nugget Pond Hydromet Facility.  Historical recovery averaged 95%.
• The undertaking was registered on December 20, 2010; the deadline for public comments is January 26, 2011; and the minister’s decision is due by February 3, 2011. 
• The Company plans on mining this crown pillar in calendar Q2, 2011.
• Completed toll milling contract for Crosshair Exploration and Mining Corp. in November 2010.

 

Peter Mercer, VP Corporate Development commented;

“We are pleased to have some additional mining at the Crown Pillar while construction is taking place at the Ming Mine. While the mining of Crown Pillar itself will be of short duration there remains much exploration potential both within our own mining lease and over the entire mineralized trend. 

In addition the successful toll milling of Crosshair’s bulk sample confirms our belief that the Nugget Pond facility is amenable to a wide range of ore types and will allow Rambler access to further business opportunities on the Baie Verte peninsula with a view to becoming the premier gold and base metal hydrometallurgical facility in the region.”

 

Nugget Pond Crown Pillar

Rambler acquired the rights to the 140L mining lease, which encompasses the Crown Pillar, through its purchase of the Nugget Pond processing facility in 2009 for C$3.5 million. (See RMM press release dated 27 October 2009)  While the original intent of the purchase was solely for the facility itself, the added bonus of acquiring the mineral rights to the surrounding area has allowed Rambler’s geologic team to evaluate the historical resource potential within the past producing property. (See RMM press release dated 26 January, 2010).  This historical resource estimate is non NI43-101 compliant and cannot be relied upon in any way.

The historical resources remaining at Nugget Pond are considered by Rambler to be highly prospective and hold significant value.  With the crown pillar accessible from surface and sitting less than 150m from the primary crusher the project will require a low capital cost investment with quick start up and minimal operating costs.

Toll Milling

In November 2010 a total of 2,241 tonnes were received from Crosshair’s Golden Promise deposit located less than 250 kilometres from the Nugget Pond facility.  The material was successfully processed over a 9 day period resulting in a small gold dore poured at the end of the program.  Rambler would like to thank Crosshair for the opportunity to process its material and wishes the company success in bringing the property closer to production.