Ramelius Resources has been given the green light for mining at the Kathleen Valley Gold Project in Western Australia. The company received the final outstanding statutory approval earlier this month and has commenced site mobilization and infrastructure work.
Ramelius expects open pit mining to commence by July 1 with first ore being trucked to the Checker mill at Mt Magnet later in the September quarter. Ramelius is about 50km north of Leinster in WA’s mid-west.
Kathleen Valley has a mine life of 1.5 years, a resource of 163,000 ounces and reserves of 56,000 ounces. The reserve grade is 4.1 grams/tonne and the metallurgical recovery is 95%.
Ramelius owns the Mt Magnet Gold mining & processing operation and has acquired the high grade Vivien and Kathleen Valley gold projects near Leinster. The Burbanks Treatment Plant is about 9km south of Coolgardie and is currently on care and maintenance. Kathleen Valley was acquired from Glencore subsidiary Xstrata Nickel Operations on September 1, 2014.
Ramelius chief executive Mark Zeptner says, “As planned, a key element of our production strategy has fallen into place with final approvals received from the relevant authorities, allowing project commencement in the current June quarter. Our selected open pit contractor, Watpac, has commenced mobilization to site and we are finalizing other related contracts and agreements.”
“In the current environment, it is pleasing to be able to kick off a new project with the associated employment and royalty benefits for the state, as well as the strong early cashflows that a high grade, low cost gold project like Kathleen Valley will deliver. Ramelius also looks forward to finalizing arrangements for the nearby Vivien Gold Project, to allow for formal underground mining commencement, in the near future.”