Rambler Metals & Mining (LON:RMM, TSX-V:RAB) has found some short term cashflow that will help it through the tricky 10-month construction of its Ming copper-gold mine. It will process ore from Tenacity Gold Mining's two projects at its Nugget Pond mill in Newfoundland, Canada.
Rambler will handle 63,000 tonnes of earth excavated from the Deer Cove and Stog'er Tight Gold mines in a toll processing agreement that is likely to last at least six months.
The ‘cost plus’ deal will begin on August 30 at the latest.
Rambler chief executive George Ogilvie said: "The commencement of this toll processing agreement will provide Rambler with cash revenue before the end of the calendar year which can be used towards further development
"Importantly, the toll processing can take place without obstructing the construction schedule for the new copper flotation circuit, which will be housed in a new, separate building adjacent to the existing mill building."
The group is also reviewing whether to re-open the Nugget Pond mine to provide additional feed to the mill.
Over the past year the group has been assessing opportunities along the Baie Verte Peninsula of the island similar to the Tenacity agreement it has just inked.
"Rambler believes the Peninsula and surrounding area holds great potential for future gold exploration and development through the use of our gold hydrometallurgical facility," it added.
Meanwhile, work continues getting the Ming back into production. It is a former underground copper and gold producing mine that closed when the deposit reached a boundary with another project. The two properties
In October last year, the company bought the Nugget Pond gold mill, which is situated approximately 40km from its project.
Rambler will expand the mill so that it is capable of handling massive sulphides from Ming to produce a copper concentrate with gold and silver as by-products.