27/05/2015 - 11:37

Ramelius gives nod for Vivien mine

27/05/2015 - 11:37

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The board of gold miner Ramelius Resources has given its approval to begin mining at the company's Vivien project near Leinster, while also announcing a $10 million facility secured with the Commonwealth Bank of Australia.

Ramelius's Vivien gold mine near Leinster.

The board of gold miner Ramelius Resources has given its approval to begin mining at the company's Vivien project near Leinster, while also announcing a $10 million facility secured with the Commonwealth Bank of Australia.

Ramelius plans to mine the Vivien deposit as a three-year underground project with a total inventory of 451,000 tonnes at 7.6 grams per tonne for 109,000 square ounces of gold, at an all-in sustaining cost of $990 an ounce.

The project is near Ramelius’s Kathleen Valley gold project, which it has also recently decided to commence mining at, and its Mount Magnet gold mine, which houses the Burbanks treatment plant, which is currently on care and maintenance.

“These projects will provide high grade feed to the low cost Mt Magnet treatment plant,” the company said.

Ramelius also said it was possible that the $10 million facility with Commonwealth Bank would not be drawn upon, given the current strong cash position of the company of $35.8 million, including gold on hand.

“Ramelius believers the Vivien project will likely extend beyond the current mine plan, given encouraging drill intersections that sit outside the planned mining area,” it said.

The company has also entered into offtake agreements with undisclosed buyers, which combined with deals secured earlier in the year, totals 86,689 ounces at an average hedge price of $1,570/oz, representing about 40 per cent of the company’s total gold production forecast over the next two years.

Earlier this month, Ramelius awarded Watpac Civil & Mining a $17 million contract to provide mining services at Kathleen Valley.

Ramelius purchased the Vivien gold project from Gold Fields in July last year.

Ramelius shares were unchanged at 13 cents each at 11:30am.

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