Progress in dewatering the Ming copper mines in Newfoundland has prompted Asa Bridle of Seymour Pierce to initiate coverage on Rambler Metals & Mining with a ‘buy’ rating.

The company is one of Harry Dobson’s projects, the former part-owner of Manchester United football, club, who has a good track record of revamping dilapidated mines.

‘Rambler has completed a large amount of work in the three years that it has been a quoted company,’ says Bridle, noting ongoing exploration drilling at surface and underground levels as the water recedes.

There’s some way to go before production, adds Bridle, including pre-feasibility and feasibility studies. ‘Nevertheless, based on our estimates, mine development would be viable.’ The shares are currently trading at 55p. Seymour Pierce has an 83p valuation, with long-term potential to hit 158p a share.

A resource estimate was recently published on the Ming mine including 233,000 tonnes at the measured (highest level of confidence) category, grading 4.17% copper, 1.93 g/t gold, 7.01 g/t silver and 0.7% zinc.

by Dan Coatsworth