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Wednesday, 26 June 2013
Rambler Metals continues to deliver, says Ocean Equities
Newfoundland - focused Rambler Metals and Mining (LON:RMM,TSE:RMM) continues to deliver on exploration and development, says broker Ocean Equities.
And the miner's latest high grade exploration results show the potential to increase reserves at its flagship Ming Mine, says analyst Christopher Welch.
Two days ago, Rambler said drilling down-dip of the 1807 zone returned 5.80 metres of 13.18% copper, 4.58 grams per tonne (g/t) gold and 31.73 g/t silver, while testing of 1807’s upper extension showed 8.4 metres of 5.28% copper, 1.59 g/t gold and 11.77 g/t silver.
The 1806 zone (1,020 ft) also threw up positive results and selective mining at this zone has resulted in a stockpile of 11,135 tonnes of material which will now be processed through the hydromet facility at Ming while the copper concentrator is offline for planned maintenance.
This is something analyst Welch says will further bolster the firm's cash flows.
"This strategy proved to be fantastically successful the last time the company used its plant in the gold-only configuration.
"Rambler has a rare type of plant that allows it to switch between copper and gold focused production configurations.
"The last batch of gold production had a cash cost of approximately C$1,000 an ounce suggesting that Rambler will be able to make a decent profit even in this suppressed gold price environment."
The analyst highlighted that Rambler's latest drill figures demonstrate the opportunity to bolt-on high grade reserves to its producing zones - something Rambler is set on achieving this goal in the short term.
"Understandably the market’s focus is on cash flow and profitability. Rambler has stated that it is performing well in the current metals price environment, no doubt shielded to a large extent by the high grade nature of its ore," he added.