The Ming Mine is a past producing underground massive sulfide copper-gold mine located in northwestern Newfoundland and operated by Rambler Metals & Mining PLC (TSXV:RAB, AIM:RMM). The area has a strong history of gold, base metal and industrial minerals mining.
Production from the 1806 Zone initially began on 28 November 2011 and over a five month period approximately 91,835 tonnes of gold ore was processed at an average head grade of 4.94 g/t for total production of 14,505 ounces. Rambler has now switched over to copper concentrate production but plans to process 1806 Zone material through the gold hydrometallurgical facility during the second half of 2013 while the copper concentrator is offline for planned maintenance. Recent drilling at Ming has returned positive results including several holes reporting visible gold contained within and near the massive sulphides indicating the potential existence of undiscovered high grade gold zones.
Ming Gold Stream
Sandstorm has a gold stream agreement to receive 25% of the first 175,000 ounces of gold, and 12% of the life of mine gold produced thereafter from the Ming Mine. Sandstorm made an upfront payment of US$20 million to acquire the stream in March 2010. There is no ongoing cost per ounce for the gold delivered from the Ming Mine.
Rambler has provided Sandstorm with the following completion guarantees: (i) that within 24 months of commencement of production, Rambler will have produced and sold a minimum of 24,000 ounces of payable gold or Sandstorm will have the option to require a partial refund of the upfront deposits, and (ii) that Sandstorm will receive minimum cash flows from the gold stream of $3.6 million in the first year of production, $3.6 million in the second year of production, and $3.1 million in the third year of production.