Record first quarter for Ramelius

Ramelius Resources has announced a "record breaking" opening quarter for the 2011 financial year with gold production increasing to 25,243 ounces.

In a statement to the Australian Securities Exchange Ramelius said that gold sales of $39.95 million for the three months to September 30 were also the highest for any quarter since the company started production at its Wattle Dam mine.

"The gold in ore production was from 45,750 tonnes at an estimated grade of 20.3 g/t gold while the record sales were at an average price of $1394 per ounce," the company said.

Earlier this financial year, Ramelius announced strong gold intersections from the first holes drilled at its Mt Magnet project.

The Company had cash of $57.8 million and gold on hand of $9.3 million at the end of the September 2010 quarter.

See statement below:

Ramelius Resources Limited (ASX: "RMS") has continued on its recordbreaking way in the opening quarter of the new financial year with new milestones in production and sales of gold from its Western Australian operations.

Ramelius said gold in ore production for the opening quarter of 2010-2011 increased to a record 25,243 ounces at a low total cash cost of A$395 per ounce.

Gold sales of $39.95 million for the three months to 30 September 2010 were also the highest for any quarter since Ramelius commenced production from its Wattle Dam mine in Western Australia.

The gold in ore production was from 45,750 tonnes at an estimated grade of 20.3 g/t gold while the record sales were at an average price of A$1394 per ounce.

Since the end of the last financial year, Ramelius also announced strong gold intersections returned from the first holes drilled by the Company on its newly-acquired Mt Magnet project, also in WA.

A capital return of 5 cents per share was paid to Ramelius shareholders in August 2010.

The Company had cash of A$57.8 million and gold on hand of A$9.3 million at the end of the September 2010 quarter. Ramelius remains debt free.