Ramelius gives tick to Western Queen South

Ramelius Resources has given the final go-ahead for the development of its Western Queen South gold project near its existing Mt Magnet gold mine in the Mid West.

Ramelius said mining was expected to kick off in January next year, with the mine to add 23,000 ounces of gold to the company’s Mt Magnet production for 2013.

“The project has a very attractive total production cost of $900/oz,” managing director Ian Gordon said.

“We will be looking to add further opportunities such as Western Queen to our base load production at Mt Magnet where operations are nearing full production rates.”

Mr Gordon said the Western Queen South deposit would be mined for approximately one year, with ore from the pit hauled to Mt Magnet for processing.

At 12:00PM, WST, Ramelius stocks were up 1.7 per cent, trading at 42.7 cents.