RAMELIUS Resources continues to exceed expectations at its gold operations in Western Australia. There was a 28% increase in production in the financial year ending June 30, 2016, to 110,839 ounces and production in the 2017 financial year is expected to increase 22% to 135,000 ounces as the Vivien and Water Tank Hill underground mines progress.
|A WS drill rig in the Milky Way pit at Ramelius Resources’ Mount Magnet Gold Project.|
During the June quarter there were 32,752 ounces produced, exceeding the guidance of 28,000-32,000 ounces. Production is from the Mount Magnet, Vivien and Kathleen Valley mines while processing is carried out at the Mt Magnet plant.
The average all-in sustaining cost (AISC) for the quarter was A$1145/ounce compared to the guidance of $1175. For the year ended June 30 the AISC was $1157, slightly higher than the guidance of $1150.
The estimated AISC for the September quarter was about $1100 while 2017 financial year AISC is expected to be $1050. In July Ramelius took advantage of gold price increases by locking away an additional 30,000 ounces of forward sales at an average price of A$1830/ounce.
Development work during the September quarter was planned at Mt Magnet and included the pre-strip at Titan open pit, set-up at Blackmans open pit and set-up at Water Tank Hill underground. At Kathleen Valley the Nil Desperandum pre-strip has been completed.
Mining by Ramelius at Mt Magnet has concentrated on the Galaxy area, approximately 1km from the processing plant, over the past four years consisting of open pit mining only. Water Tank Hill is an underground project forming part of the company’s development pipeline in the 2017 financial year, while the Milky Way area is the focus of mine life extensions and potential accelerated production from the 2018 financial year.
The Titan pit cutback at Mt Magnet commenced in June 2016. Titan is immediately west of the Saturn pit which was completed in 2015. Mining of the Perseverance open pit continues. The pit is now well below the base of the old pit and ore grades have improved significantly.
Exploration continues and at Milky Way best results are 3 metres from 160 metres @ 21.68 grams/tonne (g/t) gold, 17 metres from 73 metres @ 5.61 g/t, 7 metres from 156 metres @ 4.79 g/t and 20 metres from 173 metres @ 5.85 g/t. Further RC drilling and mining studies are being carried out.