Canadian Gov't loans $2M to Newfoundland copper-gold mine
Canada's federal government is injecting Cdn$2 million (about $1.5 million) into Rambler Metals and Mining's (LON:RMM) (CVE:RAB) copper and gold mine located in Newfoundland's Baie Verte
The loan will let the London, England-based junior miner increase output at its Ming operation, in production since Nov. 2012 and which has an updated estimated life span of 21 years. Ming was originally expected to run out of copper in 2018.
Funding will help Rambler increase production at its Ming copper and gold mine on the Baie Verte Peninsula.The funding, CBC reports, will also help the miner expand a grinding circuit at its copper-processing facility at Nugget Pond, enabling it to boost its copper concentrator capacity from 650 to 1,250 tonnes a day.
This initial expansion had already been fully funded through a $13.1 million ( ?10.5M) investment made by CE Mining II earlier this year, giving the financier majority control (63%), the company said in late October, when reporting financial results for the year ended July 31.
Rambler is also advancing engineering studies on ore pre-concentration and shaft rehabilitation work, with a view to further increase production to 2,000 mtpd at Ming, its flagship mine.
The company's property in Canada contains the former producing Ming and Ming West copper-gold mines. Ming closed operations in 1982, after producing over 2.1 million tonnes of ore grading 3.5% copper, 2.5 g/t gold and 11 g/t silver over 10 years in operations. It was officially reopened in 2011.
Ming West Mine run for a shorter period of time - between 1995 and 1996 - producing 271,000 tonnes grading 4.0% copper and 5.8 g/t gold.
Drill rig underground at Ming copper-gold mine (Image courtesy of Rambler Metals and Mining)
The original article stated that Ming has been in production since Nov. 2011. First output dates back to Nov. 28, 2011, but commercial production was not declared until Nov. 2012.