Rambler Files Lower Footwall Zone Prefeasibility Technical Report on SEDAR

Transcription

1 9 September 2015 Rambler Files Lwer Ftwall Zne Prefeasibility Technical Reprt n SEDAR Lndn, England & Baie Verte, Newfundland and Labradr, Canada Rambler Metals and Mining plc, a Canadian cpper and gld prducer, explrer and develper (TSXV: RAB, AIM: RMM) ( Rambler r the Cmpany ) tday reprts that it has filed the NI technical reprt t accmpany the pre-feasibility results previusly annunced n 20 July The PFS was successful in defining a staged, lw capital strategy fr the ptimisatin f all existing infrastructure thrugh the integratin f the Lwer Ftwall Zne ( LFZ ) mineral resurce int the life f mine ( LOM ) plan fr the Ming Cpper-Gld Mine. The peratin will begin running at full capacity in 2018 at 1,250 metric tnnes per day ( mtpd ) with a prjected mine life f 21 years. The results shw psitive ecnmics, a strng Internal Rate f Return ( IRR ) and significant cash flw under reasnable cmmdity price assumptins. In additin, there remain further pprtunities fr imprvement as the peratin becmes fully ptimised. All currency is expressed in Canadian dllars ($CDN) unless therwise nted. PRE-FEASIBILY STUDY ( PFS ) HIGHLIGHTS The PFS is based n an ptimisatin f the current high grade massive sulphide (Phase 1) peratin by blending increasing amunts f LFZ re with the massive sulphides as prductin ramps up t 1,250 mtpd. Prject after-tax net present value ( NPV5% ) f $62.0 millin with an IRR f 45 per cent based n trending cpper and gld prices including lng-term cpper price f USD $2.79 per pund (see Nte 1,2 page 4). Pretax NPV5% f $70.2 millin with an IRR f 46 per cent. Net cash flw frm peratins f $273 millin, undiscunted. Net after-tax cash flw f $110 millin (befre-tax $128 millin). The PFS utlines a five year, $66 millin LFZ capital plan fr this expansin mainly self-funded by the current mining peratin. During the initial expansin the peratin will require additinal wrking capital funding t execute its plan. The first year is prjecting a shrtfall f $8.43 millin dllars with a net cash psitin f -$650,000 ver the five year perid. During the 21 year mine life (ending 2036), after milling and recvery, apprximately 536,000 tnnes f cpper cncentrate (337 millin punds f cpper) is estimated t be prduced with 89,600 unces f gld and 527,800 unces f silver. Average annual cash perating cst f $1.97 per equivalent pund cpper (USD $1.71) Additinal pprtunities exist t imprve the lw risk, lw capital base case scenari, including : Further delay in the initial five year capital by cntinuing pst pillar cut and fill mining methd in upper prtins f the LFZ; Integratin f re pre-cncentratin at the mine site. This culd ptentially allw fr further ptimisatin f mine prductin with equal tnnage, but higher grade, being delivered t the mill; Additinal resurce grwth thrugh nging explratin in bth the higher grade massive sulphide and LFZ; Further utilisatin f the Nugget Pnd facility with new feed surces frm ther reginal cpper and gld plays.

2 Nrman Williams, President and CEO f Rambler, cmmented: Lng term cpper pricing fr the PFS was set at USD $2.79 per pund with a lng term USD/CDN FX rate f 1:0.88. This equates t a cpper price, in Canadian terms, f CDN $3.17 per pund. Tday s cpper price, in Canadian terms, is apprximately CDN $3.16 per pund. While cmpleting this engineering wrk, Rambler strived t ensure that the ptimisatin strategy was flexible enugh t withstand dwnward pressure frm cmmdity pricing, with an average annual perating cst f CDN $1.97 (USD $1.71), but als amenable t deferring prject capital if required. The PFS and cash flw mdel were successful in achieving bth f these gals. Due diligence and discussins with varius debt service prviders is cntinuing. The cmpany will prvide an update n its prgress in due curse. PRE-FEASIBILITY STUDY ( PFS ) The new twenty ne year life f mine fr the prject envisages undergrund mining frm bth the high grade massive sulphides and the LFZ. With the current infrastructure in place, this Phase 2 expansin int the LFZ is the natural next step allwing the mining and milling prcesses t be fully ptimised. The PFS has been develped thrugh a number f independent cnsultants; WSP Canada Inc. f Sudbury, Thunder Bay and Mntreal were respnsible fr the mineral resurce and reserve estimates, mining, envirnmental and prject ecnmics; Thibault & Assciates Inc. f New Brunswick were respnsible fr all prcessing aspects f the prject; while West Cast Engineering Limited, f Newfundland and Labradr, were respnsible fr all mill site civil and structural aspects f the prject. The prcedures used fr the resurce and reserve estimatin prcesses are cnsistent with the Canadian Institute f Mining and Metallurgy ( CIM ) best practices and in cmpliance with NI guidelines. All peratinal data frm the nging mining and milling at the Ming Cpper-Gld Mine was made available fr review and inclusin where necessary. As part f the PFS, a new gelgical resurce and reserve has been estimated fr the prject. Tables 1 and 2 belw utline the results f this updated estimate which are detailed in the technical reprt filed with SEDAR. N inferred mineralisatin was included in the reserve estimate. Resurces are inclusive f reserves. 2

3 MINERAL RESOURCE and RESERVE STATEMENT MINERAL RESERVE Table 1: Mineral Reserve Estimate Summary fr the Ming Cpper-Gld Mine * Classificatin Quantity Grades Cntained Metal Cpper Gld Silver Zinc Cpper Gld Silver Zinc tnnes % g/t g/t % M lbs K z K z M lbs Ttal Prven Reserve 5,205, (undiluted, unrecvered) Ttal Prbable Reserve 3,050, (undiluted, unrecvered) Dilutin (all surces) 1,374, Reserve (diluted and recvered) 8,666, * All figures are runded t reflect the accuracy f the estimate; numbers may nt ttal due t this runding. This reserve statement reflects changes t reserves in the massive sulphides based n depletin due t mining and additins due t new explratin drilling results. The NSR fr the reserve material was calculated using an all-in cst f $147 per tnne f re milled fr the massive sulphides and $118 per tnne f re milled fr the lwer ftwall zne. Frecast lng term metal prices f USD$2.79 per pund cpper, USD$1,100 per unce gld, and USD$15.50 per unce silver with a lng term USD/CDN FX rate f 1:0.88. MINERAL RESOURCE Table 2: Mineral Resurce Estimate Summary fr the Ming Cpper-Gld Mine * Classificatin Quantity Grades Cntained Metal Cpper Gld Silver Zinc Cpper Gld Silver Zinc ( 000) t % g/t g/t % M lbs K z K z M lbs Measured Ttal 19, , Indicated Ttal 9, M&I Ttal 28, , Inferred Ttal 5, * Mineral Resurces are nt Mineral Reserves and have nt demnstrated ecnmic viability. All figures are runded t reflect the accuracy f the estimate. Cut ff grades f 1.0 per cent cpper fr the massive sulphides, 1.25 grams per tnne gld fr any gld znes and 1.00 per cent cpper fr the stringer sulphides have been used in the estimate. Cut ffs are based n an NSR mdel and frecast lng term metal prices f USD$2.79 per pund cpper and USD$1,100 per unce gld, and USD$15.50 per unce silver with a lng term USD/CDN FX rate f 1:0.88. Zinc des nt cntribute t the revenues. Resurces are inclusive f reserves. 3

4 ASSUMPTIONS OF THE PFS Basic assumptins used fr the cmpilatin f this PFS include: Average cpper price f USD $2.79 per pund, gld price f USD $1,100 per unce, and silver price f USD $15.54 per unce. Lng term pricing f USD $2.79 per pund, $1075 per unce, and $15.50 per unce fr cpper, gld and silver respectively. (see Nte 2) Average USD t Canada exchange rate f 1 : Lng term exchange f 1 : Prject discunt rate f 5 per cent Mill recveries are based n: Current peratins at Nugget Pnd fr the massive sulphide re types at 96.1 per cent, 67.8 per cent and 76.1 per cent fr cpper gld and silver respectively, and; Recent lck cycle testing f LFZ re with recveries f 98.9 per cent, 63.6 per cent and 62.0 per cent fr cpper, gld and silver respectively; A weighted average rati is used fr any years with blended re types. Nte 1: Unless therwise nted all figures are quted in $CDN. Nte 2: Cmmdity pricing fr years 1 t 5 are reflective f published 2015 frecast reprts. Lng term pricing beynd year 5 trending t $2.79 per pund cpper, $1,075 per unce gld and $15.50 per unce silver. Lng term USD/CDN FX rate f 1:0.88. ABOUT RAMBLER METALS AND MINING Rambler is a mining and develpment Cmpany that in Nvember 2012 brught its first mine int cmmercial prductin. The grup has a 100 per cent wnership in the Ming Cpper-Gld Mine, a fully peratinal base and precius metals prcessing facility and year rund bulk strage and shipping facility; all lcated n the Baie Verte Peninsula, Newfundland and Labradr, Canada. The Cmpany s Visin is t be Atlantic Canada s leading mine peratr and resurce develper thrugh grwth and expansin f its existing assets; discvering new depsits; strategic partnerships; mergers and acquisitins. In additin t the Ming Mine, Rambler has strategic investments in the frmer prducing Hammerdwn gld mine, the Little Deer/ Whales Back cpper mines and the advanced Valentine Lake Gld Prject. Rambler is dual listed in Lndn under AIM:RMM and in Canada under TSX-V:RMM. 4

5 Fr further infrmatin, please cntact: Nrman Williams, CPA, CA President and CEO Rambler Metals & Mining Plc Tel N: Fax N: Stewart Dicksn / Jeremy Stephensn/ David Prter Cantr Fitzgerald Eurpe Tel N: +44 (0) Peter Mercer Vice President and Crprate Secretary Rambler Metals & Mining Plc Tel N: +44 (0) Fax N: +44 (0) Tim Blythe/ Megan Ray Blytheweigh Tel N: +44 (0) Website: Larry Pilgrim, P.Ge., is the Qualified Persn respnsible fr the technical cntent f this release and has reviewed and apprved it accrdingly. Mr. Pilgrim is an independent cnsultant cntracted by Rambler Metals and Mining Canada Limited. Tnnes referenced are dry metric tnnes unless therwise indicated. The NI technical reprt has been cmplied by a number f independent, third party, cnsultants. Including: Brian Saul, P.Eng., WSP Canada Inc: Prject ecnmics; Dean Thibault, P.Eng., Thibault & Assciates Inc: Metallurgical prcessing; Jean-Sébastien Hule, Eng., WSP Canada Inc: Envirnmental; Le Hwzdyk, P.Eng., WSP Canada Inc.: Reserve Estimatin and mining methdlgy; Rimas Pakalnis P. Eng., Pakalnis & Assciates: Rck Mechanics; Tdd McCracken, P.Ge., WSP Canada Inc: Resurce estimatin; Overtn Clburne, P.Eng., West Cast Engineering Limited: Civil and Structural Neither TSX Venture Exchange nr its Regulatin Service Prvider (as that term is defined in the plicies f the TSX Venture Exchange) accepts respnsibility fr the adequacy r accuracy f this release. Cautin Regarding Frward Lking Statements: Certain infrmatin included in this press release, including infrmatin relating t future financial r perating perfrmance and ther statements that express the expectatins f management r estimates f future perfrmance cnstitute frward-lking statements. Such frward-lking statements include, withut limitatin, statements regarding cpper, gld and silver frecasts, the financial strength f the Cmpany, estimates regarding timing f future develpment and prductin and statements cncerning pssible expansin pprtunities fr the Cmpany. Where the Cmpany expresses r implies an expectatin r belief as t future events r results, such expectatin r belief are based n assumptins made in gd faith and believed t have a reasnable basis. Such assumptins include, withut limitatin, the price f and anticipated csts f recvery f, cpper cncentrate, gld and silver, the presence f and cntinuity f such minerals at mdeled grades and values, the capacities f varius machinery and equipment, the availability f persnnel, machinery and equipment at estimated prices, mineral recvery rates, and thers. Hwever, frward-lking statements are subject t risks, uncertainties and ther factrs, which culd cause actual results t differ materially frm future results expressed, prjected r implied by such frward-lking statements. Such risks include, but are nt limited t, interpretatin and implicatins f drilling and gephysical results; estimates regarding timing f future capital expenditures and csts twards prfitable cmmercial peratins. Other factrs that culd cause actual results, develpments r events t differ materially frm thse anticipated include, amng thers, increases/decreases in prductin; vlatility in metals prices and demand; currency fluctuatins; cash perating margins; cash perating cst per pund sld; csts per tn f re; variances in re grade r recvery rates frm thse assumed in mining plans; reserves and/r resurces; the ability t successfully integrate acquired assets; peratinal risks inherent in mining r develpment activities and legislative factrs relating t prices, taxes, ryalties, land use, title and permits, imprting and exprting f minerals and envirnmental prtectin. Accrdingly, undue reliance shuld nt be placed n frward-lking statements and the frward-lking statements cntained in this press release are expressly qualified in their entirety by this cautinary statement. The frward-lking statements cntained herein are made as at the date heref and the Cmpany des nt undertake any bligatin t update publicly r revise any such frward-lking statements r any frward-lking statements cntained in any ther dcuments whether as a result f new infrmatin, future events r therwise, except as required under applicable security law. 5

6 APPENDIX 1 Mineral Reserve and Mineral Resurce Statements Table 3: Mineral Reserve Estimate fr the Ming Cpper-Gld Mine 20 July 2015 Classificatin Quantity Grades Cntained Metal Cpper Gld Silver Zinc Cpper Gld Silver Zinc tnnes % g/t g/t % M lbs K z K z M lbs MMS - Ttal Prven Reserve 707, LFZ - Ttal Prven Reserve 4,498, (undiluted, unrecvered) TOTAL 5,205, MMS - Ttal Prbable Reserve 848, LFZ - Ttal Prbable Reserve 2,202, (undiluted, unrecvered) TOTAL 3,050, MMS - Dilutin (all surces) 257, LFZ - Dilutin (all surces) 1,117, TOTAL 1,374, Ttal MMS Reserve (diluted and recvered) 1,631, Ttal LFZ Reserve (diluted and recvered) 7,035, Cmbined Ttal Reserve (diluted and recvered) 8,667, Mineral Reserve Ntes All figures are runded t reflect the accuracy f the estimate; numbers may nt ttal due t this runding. This reserve statement reflects changes t reserves in the massive sulphides based n depletin due t mining and additins due t new explratin drilling results. The NSR fr the reserve material was calculated using an all-in csts f $147 per tnne f re milled fr the massive sulphides and $118 per tnne f re milled fr the lwer ftwall zne. Frecast lng term metal prices f USD$2.79 per pund cpper and USD$1,100 per unce gld, and USD$15.50 per unce silver with a lng term USD/CDN FX rate f 1:0.88. Mineral Resurce Ntes Mineral Resurces are nt Mineral Reserves and have nt demnstrated ecnmic viability. All figures are runded t reflect the accuracy f the estimate. Cut ff grades f 1.0 per cent cpper fr the massive sulphides, 1.25 grams per tnne gld fr any gld znes and 1.00 per cent cpper fr the stringer sulphides have been used in the estimate. Cut ffs are based n an NSR mdel and frecast lng term metal prices f USD$2.79 per pund cpper and USD$1,100 per unce gld, and USD$15.50 per unce silver with a lng term USD/CDN FX rate f 1:0.88. Zinc des nt cntribute t the revenues. Resurces are inclusive f reserves. 6

7 Table 4: Mineral Resurce Estimate fr the Ming Cpper-Gld Mine 20 July 2015 Resurce Classificatin Cutff Quantity Grades Cntained Metal Cpper Gld Silver Zinc Cpper Gld Silver Zinc (000't) % g/t g/t % M lbs K z K z M lbs Measured 1807 Zne 1.00 % Cu Zne 1.25 g/t Au Ming Suth 1.00 % Cu Ming Nrth 1.00 % Cu Unmined Levels Remnant Pillars Sub-Ttal Massive Sulphides 1, Upper Ftwall 1.00 % Cu Lwer Ftwall 1.00 % Cu 18, Sub-Ttal Stringer Sulphides 18, Cmbined Measured Ttal 19, , Indicated 1807 Zne 1.00 % Cu Zne 1.25 g/t Au Ming Suth 1.00 % Cu Ming Nrth 1.00 % Cu Unmined Levels Remnant Pillars Sub-Ttal Massive Sulphides 1, Upper Ftwall 1.00 % Cu Lwer Ftwall 1.00 % Cu 7, Sub-Ttal Stringer Sulphides 7, Cmbined Indicated Ttal 9, Measure and Indicated Cmbined 1807 Zne 1.00 % Cu Zne 1.25 g/t Au Ming Suth 1.00 % Cu 1, Ming Nrth 1.00 % Cu Unmined Levels Remnant Pillars Sub-Ttal Massive Sulphides 2, Upper Ftwall 1.00 % Cu Lwer Ftwall 1.00 % Cu 25, , Sub-Ttal Stringer Sulphides 25, , Cmbined Measured & Indicated Ttal 28, , Inferred 1807 Zne 1.00 % Cu Zne 1.25 g/t Au Ming Suth 1.00 % Cu Ming Nrth 1.00 % Cu Unmined Levels Remnant Pillars Sub-Ttal Massive Sulphides 1, Upper Ftwall 1.00 % Cu Lwer Ftwall 1.00 % Cu 3, Sub-Ttal Stringer Sulphides 3, Cmbined Inferred Ttal 5,

8 APPENDIX 2: Summary f Pre-feasibility Ecnmics Table 5: Prject Ecnmics Item Value $CDN Value $USD Cpper prduced (millin lbs) Gld prduced (zs) 89,600 89,600 Silver Prduced (zs) 527, ,800 Mine Life (2016 t 2036) 21 Years 21 Years Net Revenue (millin) $ 1,142 $ 992 Net Cash Flw frm Operatins (millin) $ 273 $ 239 Ttal Capital Cst (Over LOM, millin) $ 163 $ 139 Net Cash Flw (befre tax, millin) $ 128 $ 113 Net Cash Flw (after tax, millin) $ 110 $ 100 Net Present Value-befre tax ( 5% discunt, millin) $ 70.2 $ 62.0 Net Present Value-after tax ( 5% discunt, millin) $ 62.0 $ 56.3 Internal Rate f Return-befre tax ( IRR ) 46% 46% Internal Rate f Return-after tax ( IRR ) 45% 45% Payback (years) Table 6: Summary f Ecnmic Parameters Item Value $CDN Value $USD Average Cpper Price 1 ($USD per lbs) $ 3.21 $ 2.79 Average Gld Price 1 ($USD per z) $ 1264 $ 1,100 Average Silver Price 1 ($USD per z) $ $ Average $USD/$CDN Exchange Rate Year Prject Capital Plan (millin) (millin) Mill Site $ 6.90 $ 5.53 Mine Site Surface $ 9.92 $ 8.33 Mine Undergrund and In-directs $ $ Prt Site nil nil Cntingency $ 8.75 $ 7.28 Ttal (millin) $ $ Net Cash (Shrtfall) (millin) (millin) F2016 ($ 8.43) ($ 6.75) F2017 nil $ 4.28 ($ 3.47) F2018 nil $ 6.57 $ 5.46 F2019 ($ 6.64) ($ 5.64) F2020 nil $ 3.57 $ 3.14 Ttal Cash Shrtfall (millin) ($ 0.65) ($ 0.33) Operating Csts ($CDN per tnne milled) Mining $ $ Ore Haulage t Mill $ 8.00 $ 6.96 General & Administratin $ $ Sub-ttal $ $ Prcessing $ $ Prt Operatins $ 0.86 $ 0.75 Ryalties $ 1.78 $ 1.54 Ttal (per tnne milled) $ $ Price per equivalent pund f Cu $ 1.97 $ 1.71 Other Parameters Mining Dilutin (Stpes, Drifts) 15%, 0% Mining Recvery (Stpes, Drifts) 90%, 100% Mill Recveries MMS (Cu, Au, Ag) 96.1%, 67.8%, 76.1% Mill Recveries LFZ (Cu, Au, Ag) 98.9%, 63.6%, 62.0% Cncentrate Grade (Cu) 28.5% (1) See Page 4, Nte 2 8

9 Glssary f Terms As per Canadian Institute f Mining & Metallurgy Standards and Guidelines, 2014 Mineral Resurce: A Mineral Resurce is a cncentratin r ccurrence f slid material f ecnmic interest in r n the Earth s crust in such frm, grade r quality and quantity that there are reasnable prspects fr eventual ecnmic extractin. The lcatin, quantity, grade r quality, cntinuity and ther gelgical characteristics f a Mineral Resurce are knwn, estimated r interpreted frm specific gelgical evidence and knwledge, including sampling. Inferred Mineral Resurce: An Inferred Mineral Resurce is that part f a Mineral Resurce fr which quantity and grade r quality are estimated n the basis f limited gelgical evidence and sampling. Gelgical evidence is sufficient t imply but nt verify gelgical and grade r quality cntinuity. An Inferred Mineral Resurce has a lwer level f cnfidence than that applying t an Indicated Mineral Resurce and must nt be cnverted t a Mineral Reserve. It is reasnably expected that the majrity f Inferred Mineral Resurces culd be upgraded t Indicated Mineral Resurces with cntinued explratin. Indicated Mineral Resurce: An Indicated Mineral Resurce is that part f a Mineral Resurce fr which quantity, grade r quality, densities, shape and physical characteristics are estimated with sufficient cnfidence t allw the applicatin f Mdifying Factrs in sufficient detail t supprt mine planning and evaluatin f the ecnmic viability f the depsit. Gelgical evidence is derived frm adequately detailed and reliable explratin, sampling and testing and is sufficient t assume gelgical and grade r quality cntinuity between pints f bservatin. An Indicated Mineral Resurce has a lwer level f cnfidence than that applying t a Measured Mineral Resurce and may nly be cnverted t a Prbable Mineral Reserve Measured Mineral Resurce: A Measured Mineral Resurce is that part f a Mineral Resurce fr which quantity, grade r quality, densities, shape, and physical characteristics are estimated with cnfidence sufficient t allw the applicatin f Mdifying Factrs t supprt detailed mine planning and final evaluatin f the ecnmic viability f the depsit. Gelgical evidence is derived frm detailed and reliable explratin, sampling and testing and is sufficient t cnfirm gelgical and grade r quality cntinuity between pints f bservatin. A Measured Mineral Resurce has a higher level f cnfidence than that applying t either an Indicated Mineral Resurce r an Inferred Mineral Resurce. It may be cnverted t a Prven Mineral Reserve r t a Prbable Mineral Reserve. Mdifying Factrs: Mdifying Factrs are cnsideratins used t cnvert Mineral Resurces t Mineral Reserves. These include, but are nt restricted t, mining, prcessing, metallurgical, infrastructure, ecnmic, marketing, legal, envirnmental, scial and gvernmental factrs. Mineral Reserve: A Mineral Reserve is the ecnmically mineable part f a Measured and/r Indicated Mineral Resurce. It includes diluting materials and allwances fr lsses, which may ccur when the material is mined r extracted and is defined by studies at Pre-Feasibility r Feasibility level as apprpriate that include applicatin f Mdifying Factrs. Such studies demnstrate that, at the time f reprting, extractin culd reasnably be justified. The reference pint at which Mineral Reserves are defined, usually the pint where the re is delivered t the prcessing plant, must be stated. It is imprtant that, in all situatins where the reference pint is different, such as fr a saleable prduct, a clarifying statement is included t ensure that the reader is fully infrmed as t what is being reprted. The public disclsure f a Mineral Reserve must be demnstrated by a Pre-Feasibility Study r Feasibility Study Prbable Mineral Reserve: A Prbable Mineral Reserve is the ecnmically mineable part f an Indicated, and in sme circumstances, a Measured Mineral Resurce. The cnfidence in the Mdifying Factrs applying t a Prbable Mineral Reserve is lwer than that applying t a Prven Mineral Reserve. Prven Mineral Reserve: A Prven Mineral Reserve is the ecnmically mineable part f a Measured Mineral Resurce. A Prven Mineral Reserve implies a high degree f cnfidence in the Mdifying Factrs. 9