Rambler Joint Venture faces critical decision

The joint venture, involving Petromet Resources (TSE), Newfoundland Exploration (TSE) and Teck Corp., has recently concluded a multi-phase exploration program on the past-producing Consolidated Rambler property situated on the island’s Baie Verte Peninsula.

The $3.8-million program, managed by MPH Consulting of Toronto, had just reached completion when The Northern Miner made a visit to the property.

“The Rambler joint venture is still a long way from having any firm ore reserves outlined,” said MPH geologist David Duncan, who was manager of the recent exploration program. Since most of the recent work was geared to examining the over- all potential of the property from several angles, it’s not clear which specific direction or focus will be taken next.

With so many of the other former base metal bets on the Baie Verte Peninsula becoming gold targets, the Rambler property could be headed in that direction as well.

“One interesting feature of this part of Newfoundland is that many companies are coming up with gold in a variety of geological settings that have never been tested for gold before,” said Duncan.

On the Rambler property, a surface massive sulphide discovery, known as the Ming West zone, had offered considerable encouragement to the partners late last year, but subsequent drilling has shown the zone narrows to uneconomic widths at depth. Whether reserves in the new zone will be sufficient to justify a mine is uncertain.

Operated by Consolidated Rambler Mines (TSE) between 1964 and 1982, the Rambler property yielded some 4.7 million tons of copper-gold ore from four separate deposits.

Since the mines closed down, Consolidated Rambler has turned its attention to timber lands in Maine, although the company still funds work on its other Baie Verte Peninsula property near Betts Cove. That property is currently optioned to Inco Gold, a wholly-owned subsidiary of Inco Ltd. (TSE).

Inco still owns the surface infrastructure on the Rambler property and had done some preliminary work before the project was taken over by the joint venture. Inco also retains most of the past records on the property.

Although the old base metal mines on the Rambler property were closed in 1982, the site has apparently never had a major re- evaluation for its gold potential.

“Ironically,” said Duncan, “the property was originally a gold prospect back in the early part of this century.”

It was the gold content of old mine tailings which sparked the interest of at least 10 mining companies who a year ago submitted proposals to explore the area.

In 1986, the Rambler property was one of several areas examined under the government’s abandoned mine assessment program. Anomalous gold values were found in the old tailings, and further work in 1987 identified one million tonnes of tailings with a grade of 2.0 g (0.06 oz) gold per tonne.

In total, the tailings pond is estimated to contain nearly 3.8 million tonnes grading 1.0 g (0.03 oz) gold per tonne, 0.5% copper and 0.37% zinc. Metallurgical tests have been done to determine the merits of reprocessing the tailings and a decision is still awaited on that possibility.

“The tailings project would not be large by Timmins camp standards, but the infrastructure is here and the access is very good,” said Duncan.

Teck is expected to meet with Petromet and Newexco in mid-June to review results of the recently completed work program.

According to Petromet President Donald Sawyer, Teck has until November this year to decide on its future participation in the Rambler project.

The Vancouver-based senior mining company has the right to earn a 50% interest by funding further costs through to feasibility and arranging senior financing. On making its election to earn in, Teck would become operator of the project with vested interests becoming Newexco 25%, Petromet 25%, and Teck 50%.

“If Teck elects not to participate, then we’ll have to look at plan B or C,” said Sawyer, although he did not elaborate on what either of those plans might be.

Elsewhere in the province, Teck holds a 63% interest in Newfoundland’s only producing zinc mine at Daniel’s Harbour. Teck says ore at that mine will be exhausted by the end of this year, and a recent exploration program showed little potential for new reserves.

The company has recently acquired some new exploration claims in the southern part of the province and has established a regional office in St. John’s.

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