May 09, 2016
Maritime and Rambler Sign Engineering and Evaluation Agreement to Determine the Viability of Restarting the Past Producing Hammerdown Mine
VANCOUVER, BC - Maritime Resources Corp. (MAE-TSX Venture) (the "Company") is pleased to announce that the Company has entered into an Engineering, Evaluation and Services Agreement ("Agreement") with Rambler Metals and Mining PLC (AIM:RMM, RAB-TSX Venture) ("Rambler") to evaluate the economic potential of re-opening the past producing Hammerdown gold mine located within Maritime's Green Bay Property, Newfoundland and Labrador, Canada.
Under the terms of the Agreement, the companies will work together and appoint an independent qualified third party consultant (the "Consultant") to prepare and complete a pre-feasibility study (the "Study"), funded by Maritime. The Study will evaluate the mineral reserves available on the property. Should a positive economic analysis and a production decision, by the Board of Directors of Maritime be determined, the two companies will then negotiate mutually agreeable management services and toll milling agreements that will see Rambler assist Maritime in the process of re-opening the old Hammerdown mine.
The initial Independent Mineral Resource Estimate for the Green Bay Gold property was prepared in accordance to the requirements of NI 43-101 and released in June 2013. The study estimates the property to contain in excess of 425,000 ounces of gold in the Measured and Indicated categories and in excess of 660,000 ounces in the Inferred category, both at a 3 g/t cut-off grade. The estimate was compiled by Tetra Tech of Ontario. (see press release from May 28, 2013)
Throughout the process the Green Bay Property will remain 100% owned by Maritime along with all rights to continue exploring the land package. Exploration potential at Green Bay is substantial in three areas; the Rumbullion vein system which extends for 800 metres to the northeast, the Hammerdown offset fault extension which is projected at approximately 500 metre depth and the open Orion vein system which lies approximately 1,500 meters to the southwest of Hammerdown and has only been drilled to 300m depth.
In order to assist Maritime and the management team in advancing the Hammerdown project pursuant to this Agreement, Rambler has agreed to vote all its common shares of Maritime in favour of management during the terms of this agreement.
Doug Fulcher, President and CEO of Maritime commented:
"We are very pleased to have entered into this Agreement with Rambler. Rambler's presence and operational expertise in Newfoundland is a huge asset to Maritime as we move the Hammerdown project forward. The toll milling option at the permitted Nugget Pond gold mill, where Hammerdown ore was previously processed, would allow for the project to be fast-tracked to production following a positive production decision by Maritime.
The Hammerdown mine was previously in production from 2000 until 2004 with grades averaging approximately 16 g/t gold at an 8 g/t cut-off grade with average gold recoveries in excess of 97%. The high grade nature of the deposit, combined with the existing underground workings and infrastructure would provide opportunities to reduce capital costs and permitting time to production when compared to building new milling and tailings storage facilities at the Hammerdown property."
Norman Williams, President and CEO of Rambler Metals and Mining commented:
"We are pleased to see Maritime moving ahead with the economic evaluation and pre-feasibility work to determine the viability of restarting the past producing Hammerdown mine. Our gold plant at Nugget Pond remains under care and maintenance while Ming Mine ore is fed directly into the copper concentrator only. Fully utilizing all available infrastructure at our processing facilities could be a tremendous opportunity for both Maritime and Rambler."
ABOUT MARITIME RESOURCES CORP:
Maritime Resources holds 100% of the Green Bay property, located near Springdale, Newfoundland and Labrador. The property hosts the past producing Hammerdown gold mine and the Orion gold deposit separated by a 1.5 km distance, as well as the Lochinvar base metals/precious metals deposit.
An initial Independent Mineral Resource Estimate for the Green Bay Gold property was prepared in accordance to the requirements of NI 43-101 and released in early June 2013. The study estimates the property to contain in excess of 425,000 ounces of gold (727,500 tonnes @ 11.59 g/t Au at Hammerdown and 1,096,500 tonnes @ 4.47 g/t Au at Orion) in the Measured and Indicated categories and in excess of 660,000 ounces (1,767,000 tonnes @ 7.58 g/t Au at Hammerdown and 1,288,000 tonnes @ 5.44 g/t Au at Orion) in the Inferred category, all at a 3 g/t cut-off grade diluted to 1.2 metre wide mining width. The estimate was compiled by Tetra Tech of Ontario.
The Hammerdown gold deposit was successfully mined by Richmont Mines between 2000 and 2004 while gold prices averaged $325/oz. During its operation, a total of 291,400 tonnes of ore were mined and milled, at an average grade of 15.83 g/t Au, recovering a total of 143,000 ounces of gold at an 8 g/t cut-off. All of the ore was processed at the Nugget Pond mill, now owned and operated by Rambler, with an average gold recovery of 97.1%. Mining terminated in 2004 due to low gold prices with extensive gold mineralization remaining, although uneconomic at that time. (Maritime is in possession of historic mining records). The Orion gold deposit consists of two main vein systems, both of which are open along strike, and down plunge to the northeast.
Further information on the Green Bay Gold Property can be found on our website along with the NI43-101 Technical Report filed on SEDAR on July 11, 2013 at www.maritimeresourcescorp.com.
Bernard H. Kahlert, P.Eng. is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical disclosure contained in this release.
ABOUT RAMBLER METALS AND MINING:
Rambler is a mining and development Company that in November 2012 brought its first mine into commercial production. The group has a 100% ownership in the Ming Copper-Gold Mine, a fully operational base and precious metals processing facility and year round bulk storage and shipping facility; all located on the Baie Verte peninsula, Newfoundland and Labrador, Canada.
The Company's Vision is to be Atlantic Canada's leading mine operator and resource developer through growth and expansion of its existing assets; discovering new deposits; strategic partnerships; mergers and acquisitions. In addition to the Ming Mine, Rambler owns 100 per cent of the former producing Little Deer/ Whales Back copper mines and has a 17% equity stake in Maritime Resources.
On behalf of the Board of Directors,
President & CEO
FOR FURTHER INFORMATION:
Cathy DiVito, Investor Relations Telephone: (604) 484-7111
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.