JOHANNESBURG (miningweekly.com) – Canada-based copper and gold producer Rambler Metals & Mining will ramp up its Ming copper-gold mine, in Baie Verte, Newfoundland and Labrador, to run at full capacity of 1 250 t/d by 2018 from its current 650 t/d.

This followed the completion of a prefeasibility engineering study (PFS)  and economic assessment aimed at integrating the lower footwall zone (LFZ) mineral resource into the life-of-mine.

The results showed positive economics, a strong internal rate of return and significant cash flow under reasonable commodity price assumptions. In addition, more opportunities for improvement were identified, as the operation became fully optimised, including further use of the Nugget Pond base and precious-metals milling facility, with new feed sources from other regional copper and gold plays, the dual-listed company said in a statement.

"I am pleased with the results of the PFS, demonstrating a low-risk and low-capital solution to [improve efficiency] and expand the operation into a profitable mine with an expected life of more than 20 years. Being a Canadian producer, Rambler benefits not only from working in one of the safest jurisdictions in the world, but also from selling commodities in US dollars while most of our costs remain in Canadian dollars,” Rambler CEO and president Norman Williams commented.

The PFS was based on an optimisation of the current high-grade massive sulphide operation, by blending increasing amounts of LFZ ore with the massive sulphides as production ramped up and planned to increase mill throughput to 850 t/d in 2016 and 1 180 t/d in 2017, until full capacity was reached in 2018.

Williams added that Rambler had been advancing discussions with a selection of financing partners, focusing on debt-type financing arrangements. This main project financing was intended to mainly cover working capital shortfalls as the company progressed its optimisation plan.

In the interim, Rambler was in advance discussions to secure a $5-million bridge loan facility with its current offtake partner as a means of strengthening its working capital position while expediting development into the LFZ.

The company initiated discussions with various debt-type financing partners targeting up to $25-million to strengthen the working capital shortfall, initiate the expansion's construction and provide additional capital should it choose to be more aggressive with construction or underground development.

"We will continue to advance and develop the other opportunities with a goal to further strengthening the base-case economics and potentially allowing more of the 26-million-ton LFZ resource to be [clasified in the] reserve [category],” Williams highlighted.

During the 21-year mine-life, ending 2036, it was estimated that after milling and recovery,  about 536 000 t of copper concentrate would produced, with 89 600 oz of gold and 527 800 oz of silver.

The mine would have an average yearly cash operating cost of C$1.97/lb copper.