NEWFOUNDLAND – Rambler Metals and Mining of Baie Verte, NL, has completed a pre-feasibility study that integrates the Lower Footwall zone mineral resource into the Ming copper-gold mine plan. The study defined a staged, low capital strategy to take the project to full capacity of 1,250 t/d by 2018. The current rate at the Nugget Pond mill is 650 t/d.
Rambler says the expanded project will have an after tax net present value of US$62.1 million with an internal rate of return of 45% based on a long term copper price of US$2.79 per lb. The undiscounted net cash flow from operations will be US$273 million, and the after tax cash flow is expected to be US$110 million.
The five-year plan to put the Lower Footwall zone into production will be mostly funded by the current mining operation. However, Rambler expects a shortfall of US$8.43 million in in the first year of development. The deficit is expected to become a net cash position of US$650,000 over a five year period.
With a 21-year life for the project, the PFS anticipates total production of 337 million lb of copper in concentrate plus 89,600 oz of gold and 527,800 oz of silver. The average annual cash operating cost will be US$1.97 per lb of copper equivalent.
Reserve and resource numbers are available at RamblerMines.com.