Rambler Metals& Mining Plc said May 9 that it signed an agreement with to evaluatethe economic potential of re-opening the Hammerdown gold mine in Newfoundland and Labrador, whichstopped production in 2004 due to depletion of reserves.
The agreement follows a 2014 letter of intent between the parties.
Rambler is keen to see the mine restart in order to more fullyutilize its own Nugget Pondmill, where ore from Hammerdown was originally processed. The mill is currentlyon care and maintenance.
Maritime, meanwhile, has been looking for funding to reopen themine for a number of years.
Under the terms of agreement, a third-party consultant will beappointed to complete a pre-feasibility study of the mineral reserves availableat Hammerdown.
If a positive outcome is determined, the two sides would negotiatemutually agreeable management services and toll milling agreements.
"Fully utilizing all available infrastructure at our processingfacilities could be a tremendous opportunity for both Rambler and Maritime,"said Norman Williams, president and CEO of Rambler.
Hammerdown, which is located on Maritime's Green Bay project area, had 15,000 ounces of goldresources as of 2004, according to data from SNL Metals & Mining.
Rambler has a 17% equity stake in Maritime.