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Rambler Metals and Mining (LON:RMM, CVE:RAB) has expanded its footprint in the Baie Verte area of Newfoundland - acquiring the rights to explore and develop a gold/copper property.
Krissy's Buckle lies around 5 kilometres (km) south of the firm's Ming mine and within 40km of its Nugget Pond processing facility, encompassing 2,300 hectares.
Rambler says a key target will be the Krissy trend, where a hole returned 10.51 g/t (grams per tonne) gold over 1.75 metres, including 0.5m at 31.9 g/t golf and 2.84% copper.
The area contains two mining leases and numerous copper and gold mineralised zones and anomalies including Krissy, SB and the Brass Buckle trends.
Rambler can begin exploring and compiling historical data immediately.
The miners chief executive and president, George Ogilvie said: "We believe that the Baie Verte area has significant mineral exploration potential and with the Ming copper-gold mine in commercial production, and generating free cash flow, now is the right time to acquire other properties within close proximity to our existing operating mill.
"This is the first property arrangement we have completed since reaching commercial production in November 2012, and hopefully it will not be our last as we are currently in negotiations on a number of other exciting prospects."
Broker Ocean Equities noted that Rambler is "uniquely placed" to take advantage of the abundant high grade mineralisation in an area, which is perhaps one of the last where such near surface base and precious metals deposits can be found.
The firm has integrated mine-concentrator-port facilities and it is "great to see the firm capitalising on its position", said Ocean analyst Christopher Welch.
The analyst notes that Rambler is currently examining upgrading its gold recovery unit to improve gold recovery rates
"Should the company define a sufficiently large additional gold resource it could potentially also justify installation of additional milling capacity to make it a much larger gold and copper producer," says Welch.
The property deal is between the company and three land holders: Peter Dimmell, Krinor Resources Inc and Northeast Exploration Services.
Rambler has the exclusive right to explore and develop the property while providing the vendors with a 2% net smelter royalty (NSR) on any ore extracted.
In addition, advanced royalty payments totalling C$90,000 will be paid to the sellers over the first four years, Rambler told investors.
Last month saw the company report that it had moved into the black for the first time in its second quarter.
In the three months to January 31, 2013, the group logged a pre-tax profit of C$1.93mln, compared to a loss in the corresponding quarter of last year of C$1.04mln.
Rambler shares today were unchanged at 26.75p.
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