Rambler Metals and Mining (LON:RMM, CVE:RAB) assured investors that construction work on its Ming mine project remains on schedule.
Production at its Tilt Cove East mine however has been suspended due to sodium cyanide supply issues.
In an update on the two operations, located on Baie Verte Peninsula, Canada, Rambler says the Ming project mill start-up and commissioning is planned for October 2011.
Development of Ming ore bodies is continuing in preparation for mine stoping. Definition drilling at the 1806 Zone has returned grades of 1.58% copper, 9.85 g/t gold, 100.37 g/t silver, 1.73% zinc over 16.60 meters.
Meanwhile concentrate storage facility at Goodyear's Cove Port in support of Ming is scheduled to be completed in October 2011.
At the Tilt Cove East mine a total of 1,041 gold ounces have been recovered from the operation with an average gold price realized of C$1,643. The total, all in cash cost for the operation is estimated at C$974 per ounce, providing Rambler with a net profit of approximately CAD $720,000 to date.
However, due to a major North American supplier of Sodium Cyanide declaring ‘force majeure’ Rambler has been forced to suspend the milling of the Tilt Cove material until an alternative source can be found.
Until then, between 20,000 and 30,000 tonnes remain in the stockpile at Tilt Cove. Once a secure supply of reagents can be sourced the company will re-evaluate to potential of continuing this program.
George Ogilvie, president and chief executive of Rambler hailed the continuing good progress towards first production from the Ming Mine in the second half of this year.
He says that over the last 2 months Rambler has continued to build up its Ming labour force, which now stands at 110 with only a few key positions remaining to be filled.
In-fill drilling at 1806 zone has returned “encouraging grades, over good widths that should improve the reserve in this block,” Ogilvie says, adding: “Any additional gold at a time of record gold prices will only benefit the company.”