Rambler announced and commencement of production in December 2011 and has since been pouring gold while preparations continue for the production of a copper concentrate. Recent drilling 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 August 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.