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| Last updated at 1:18 PM on 08/01/09 |
Layoffs announced at mine on Baie Verte Peninsula  
The Western Star
A mining project on the Baie Verte Peninsula is the latest sector of the province’s natural resources industry to feel the pinch of worldwide financial challenges.
Rambler Metals Mining announced today that it will scale back operations at its Ming copper-gold project and lay off 18 employees.
The company called it the first phase of a cost-reduction program at the mine site, and was necessary in order to preserve working capital ahead of the potential opening of the mine.
Underground drilling and pre-development work has been suspended, company CEO George Ogilvie stated in a news release.
Technical and management staff are being retained, and only care and maintenance personnel will remain at the site.
The company will focus on reducing all costs to conserve remaining cash, and is continuing to review all options, Ogilvie added.
“In order to preserve cash, Rambler has made the decision to significantly scale back operations on site. This has been a difficult but essential decision due to the current financial challenges facing our industry.
“The company is still committed and confident that a financing can be completed in 2009. However, by implementing this plan, Rambler will be able to care and maintain its high quality asset without requiring any external funding until 2010.”
The company will continue work on a resource update, technical report and engineering study, due to be completed early this year. These studies will be based on the exploration and development work completed to date.
The mine last operated in 1982.
A resource estimate released last April indicated the deposit could support a 4,000-tonne-per-day operation for more than 10 years.
The company has been carrying out development and exploration at the site, and had hoped to begin mining operations this year.
Rambler had hoped to employ from 50 to 100 people during initial operation, and up to 350 during full production.
The company blamed a sharp decline in commodity prices for its decision.
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08/01/09
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