Ramelius Resources Ltd has given the go-ahead for mining for gold at its Wattle Dam resource near Kambalda.
Ramelius Resources Ltd has given the go-ahead for mining for gold at its Wattle Dam resource near Kambalda.
Open cut mning is planned to begin in January at the site which hosts a resource of 180,000 tonnes at 3.6 g/t gold (cut) for an estimated 21,000 ounces of gold.
The full release and today's chaiman's address to the AGM is below:
RAMELIUS ANNOUNCES DECISION TO MINE
HIGH GRADE WATTLE DAM GOLD PROJECT
The go-ahead was given today for a new Australian gold mine as gold prices hit an 18 year high.
Mr Bob Kennedy, Chairman of Ramelius Resources Limited (ASX code: "RMS"), announced approval for the new high grade Wattle Dam mine, near Coolgardie in Western Australia, at the Annual General Meeting of Ramelius in Adelaide today.
Located in the fertile Spargoville Belt, Wattle Dam hosts a resource of 180,000 tonnes at 3.6 g/t gold (cut) for an estimated 21,000 ounces of gold. It will be open-cut mined by Ramelius from January 2006.
The resource includes the Eastern High Grade Zone of 76,000 tonnes at 5.9 g/t gold (cut) for 14,400 ounces of gold. Mr Brian Kelty has been appointed Mine Manager.
In June this year, Ramelius reported bonanza results from drilling at the Eastern Zone, including 953 g/t gold and 151 g/t gold in adjacent one metre intervals, and an additional 59 g/t au over one metre within a continuous mineralised zone in infill hole, WAC082.
Other results included 587 g/t gold over one metre in a second hole, WAC 085, and 65 g/t gold and 35 g/t gold in adjacent one metre intervals in a third hole, WAC 083.
Mr Kennedy told shareholders today that Ramelius expected an operating profit of
between $2.4 million and $3.6 million from the mine, based on optimised cash costs
of between A$337 to A$353 per ounce.
"Wattle Dam is a highly minable gold resource which is expected to be mined commencing January 2006," Ramelius Resources' Managing Director, Mr Joe Houldsworth, said.
"The resource's shallow but in part, spectacularly high grades, are expected to significantly enhance the economic returns from the Wattle Dam development," Mr Houldsworth said.
"More importantly, earnings from the mine will provide funds for our ongoing and intensifying major exploration activity on Ramelius' gold, nickel and base metals assets within the Spargoville Belt which is assuming increased relevance as an emerging gold and nickel province."
The Wattle Dam gold project is located 25 kilometres west of Kambalda in the eastern goldfields of Western Australia, and forms part of the Company's under-explored Spargoville Belt Project area.
The target ore body for mining, the 7800N prospect, lies within Ramelius' 280 square kilometres of ground along more than 30 kilometres of strike length, and on trend with recent discoveries of gold and nickel.
The ore will be toll treated within a 60 kilometre radius of the pit, with negotiations currently underway with contract miners.
Mr Houldsworth said the potential existed for incremental increases in the size and grade of the Wattle Dam resource as mining proceeded.
"Metallurgical test work has indicated free milling ores with high recovery rates and low reagent usage," Mr Houldsworth said.
Strong nickel prospects
He told shareholders that in addition to the Wattle Dam mine, Ramelius' Spargoville Belt Project represented a substantial regional position and an area that held considerable promise.
"At the Hilditch Nickel Project, massive, disseminated and stringer nickel sulphides have been intersected below nickel sulphide gossans in the north-eastern section of the project area, further confirming the fertility of this ultramafic belt," Mr Houldsworth said.
"The forthcoming year should see a cash flow generated from the development of Wattle Dam, and a renewed vigour in exploration at Hilditch and the many gold targets yet to be tested throughout our Spargoville Belt Project."
Below is the chairman's address from today's AGM:
RAMELIUS RESOURCES LIMITED
2005 ANNUAL GENERAL MEETING
CHAIRMANS ADDRESS
Welcome Ladies and Gentlemen to the 2005 Annual General Meeting of Ramelius
Resources Limited.
I am pleased to announce that your Board has today committed to the mining of the new
high grade Wattle Dam mine near Coolgardie in Western Australia as gold prices hit an
18 year high. Today, we have also confirmed the appointment of Mr Brian Kelty as Mine
Manager.
During the past year Ramelius has maintained its aggressive exploration strategy
significantly advancing its projects towards development and production.
I am pleased to report that the Companys efforts have returned several exploration
successes, the most notable, are Wattle Dam Gold Project and the Hilditch Nickel
Project within the Companys Flagship Spargoville Belt Project.
Both the Wattle Dam Gold Project and the Hilditch Nickel Project are located within our
extensive and highly prospective tenement holdings, located in one of the most well
endowed mineral provinces in Australia. They are indicative of the potential for major
gold and nickel resources within the Spargoville Belt Project Area.
Since the end of the financial year, Ramelius successfully completed a placement of
8,666,666 new fully paid ordinary shares at $0.15 each together with 4,333,333 free
attaching listed options to raise gross funds of AUD $1,300,000.
The placement was made to Sprott Asset Management, a major Canadian institutional
investor with a proven track record in gold and precious metals investments and we
welcome them as a new shareholder. The placement was made within the 15% limit
under the ASX Listing Rules. The attaching options are the subject of a resolution before
shareholders today.
Importantly, the funds raised from the issue of the Placement will be used to fast track
development of the high-grade Wattle Dam discovery, expand regional exploration for
both gold and nickel at what is emerging as a major prospective belt covering more than
30 kilometres at Spargoville, and for working capital.
Looking ahead, Ramelius will continue its work to discover the wealth of mineral
resources hidden within its project areas, work which we aim to fund with cash flow from
the proceeds of our first gold production. The Spargoville Belt, in particular, is emerging
as a very fertile gold and nickel province in which Ramelius holds a strong land position.
I will shortly hand over to our Managing Director, Mr Joe Houldsworth, who will expand
on the activities of the Company and exploration results to date.
