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 initially began in late 2011 and Rambler is currently producing a copper concentrate. Rambler recently provided a reserve and resource estimate update for the Ming Mine showing the replacement of all tonnes mined from the 1807 Zone to-date; thereby, extending the mine life by one year. Additionally, all zones remain open to further exploration. 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.
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.
In the event that the metallurgical recoveries of gold at the Ming Mine are below 85%, the percentage of gold that Sandstorm shall be entitled to purchase shall be increased proportionally. Based on 2013 metallurgical recoveries, Sandstorm’s 2014 gold purchase entitlement was increased to 33%.