Range River starts mining at Mt Morgans

Range River Gold has begun open pit mining at its Mt Morgans gold project in the Goldfields.

The company has also re-opened its new Transvaal underground gold mine.

Range River said today's announcement was a significant milestone for the company.

Range River managing director Rick Watsford said, "The new Ramornie North and Sarah gold mines are the first to have been discovered by Range geological team and brought into production.

"The successful exploration and development into production of Ramornie North and Sarah is the first tangible step of the plan to grow actual production to 100,000 ounces of gold per annum within five years," he said.

See company statement below:

Range River Gold Ltd (ASX: RNG) has commenced open pit mining of Ramornie North and Sarah gold mines at Mt Morgans. RNG has also re-opened its new major producing Transvaal underground gold mine.

Managing Director Rick Watsford commented:
The commencement of the Ramornie North and Sarah open pits and re-opening of the Transvaal gold mines at Mt Morgans are major milestones.

The new Ramornie North and Sarah gold mines are the first to have been discovered by Range's geological team and brought into production.

The re-opening of the Transvaal underground gold mine is a key milestone as it will be the major producing mine at Mt Morgans for the next four years and beyond.

The acquisition of Mt Morgans was based on the Company's view that there was significant potential to deliver high grade gold resource ounces over and above
those in the historically mined deposits.

The successful exploration and development into production of Ramornie North and Sarah is the first tangible step of the plan to grow actual production to 100,000 ounces (oz) of gold (Au) pa within five years.

These developments and the recently announced 44% increase in Mineral Resource to 869,140 oz Au emphasise the excellent exposure of Range to a rising gold price through re-evaluation, discovery and development of near mine extensional resources.

Ramornie North and Sarah Gold Mines
The Ramornie North and Sarah gold deposits (see Figure 1) are located along and parallel to the Ramornie-Transvaal trend.

Surface mapping and a review of historical drilling data indicated the potential for near surface mineralisation along two mapped structural features. Both opportunities were prioritised in a list of several potential targets.

Drilling of both features identified gold mineralisation. Geological modelling resulted in the determination of Mineral Resources that were announced on the 9 November 2010. The total Mineral Resource for Ramornie North and Sarah is 33,090 oz Au.

The Mineral Resources for Ramornie North and Sarah gold mines contributed to the 44% increase in the Mineral Resources at Mt Morgans to 869,140 oz Au

The gold Ore Reserves for Ramornie North and Sarah (i.e. 7,510 oz Au) were determined by open pit optimisation of the Indicated Mineral Resources.

The mine plans are based upon mining the Ore Reserves and Inferred Mineral Resources.

Drilling is underway to convert the Inferred Mineral Resources to Indicated Mineral Resources.

The Western Australian Department of Mines and Petroleum (DMP) has approved the Mining Proposal for Ramornie North and Sarah and mining has commenced.

Craic Gold Mine Underground Development
The development of the Craic underground gold mine is a key element of the production plan for Mt Morgans. The underground mine is expected to provide high grade gold ore through open stoping of ore blocks that continue at depth below the open pit.

To provide access to the ore stopes a decline is being developed from the northern wall of the open pit (see Figure 5) at 365RL. Approximately 216m of decline will be developed to the 335RL where the first main level of the mine will be developed. Ore stoping will begin on this first main level.

A separate lateral ore drive is being developed from the southern wall of the open pit at 360RL. This drive will access ore south of the southern wall of the pit that was not mined in the open pit.

Development progress is advancing at approximately 8m per day.

Excellent progress has been made. Since commencement in early October development
has included:
162 m of decline development (54m remains to the first main level) from 365RL.
Completion of a separate ventilation portal in the open pit at 375RL.
39m of ore drive in the southern wall of the pit at 360RL.
Development of two drill drives for stope design drilling.

Re-opening of Transvaal Gold Mine
The re-opening of the Transvaal underground gold mine is an important milestone. The Transvaal underground is planned to be the major source of gold ore production over the next four to five years.

Surface run off water had accumulated in the open pit and underground workings since the mine was closed in 1998. De-watering is essential to regain access to the underground workings. De-watering was commenced earlier this year with a small pump awaiting
delivery of new larger pumps.

The water level in the Transvaal open pit has been lowered sufficiently with the small pump to allow access to the original ventilation portal and drives at this level. Rehabilitation of the portal and drives has commenced.

The ground conditions and status of the drives is excellent (see Figure 8). Rehabilitation, to date, has consisted only of meshing of the drives which is being undertaken as a precaution. This suggests that the rehabilitation advance will be ahead of plan allowing earlier access to ore.

Historical records indicate the presence of unmined ore stoping blocks immediately
accessible from the ventilation portal level drives. Underground drilling is being undertaken for stope design. The expectation is that stope ore could be produced ahead of schedule in December.

The larger water pumps required to complete the dewatering and allow access to the lower levels of the mine are due to be installed in the coming week. This will progress the
dewatering at a rate to meet the planned production schedule from Transvaal.