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Ramelius Resources reaches gold production target

Mining
ASX:RMS      MCAP $2.353B
09 October 2019 21:18 (AEST)

Explorer Ramelius Resources announced today the company has achieved its guidance of gold production for the working quarter.

During the September quarter, the company achieved the production of 44,182 ounces of gold. At the end of the period, the company’s combined cash and gold value balance sat solid at A$92.8 million.

“The operations team continues to deliver consistent results, with production guidance achieved once again and a number of project milestones also attained,” Ramelius Managing Director Mark Zeptner said.

The company’s three major projects, Mt Magnet, Vivien, and Edna May, are all located in Western Australia.

Mt Magnet from the Murchison Province provided 17,504 ounces of gold. Vivien, located nearby the town of Leinster, provided 11,527 ounces of gold. Edna May, located within the Westonia Greenstone Belt, gave up 15,151 ounces of gold.

“Extension of mine life at Vivien and first ore development at Shannon were part of an active quarter at Mt Magnet whilst Edna May continues to produce strongly with the underground operations moving into stoping production and our Marda project receiving mining proposal approval late in the quarter,” Mark added.

“We continue to have a sharp focus on investing for the future via exploration and capital development across both production centres.”

During the quarter, the company commenced mining at Mt Magnet’s underground Shannon mine. As well, the company also extended the life span of its Vivien mine by a year — expected to run until June 2021.

The company also saw success earlier this month, obtaining a clearing permit approval at the Greenfinch project. Greenfinch sits adjacent to the Edna May mine, which was acquired by the company in 2017.

“The grant of the clearing permit at Greenfinch, earlier this month, was the culmination of two years work since acquisition of the project in October 2017,” Mark said.

The approval was granted by the Department of Mines, Industry Regulation and Safety. Commencement of clearing activities remains subject to a 21-day period of public advertising.

During the quarter, Ramelius spent $7.6 million on exploration, and $19.1 million in project development costs.

Of that spending, over $14.5 million went towards Mt Magnet, $3.8 million was spent on Edna May and $800,000 was put towards pre-development work at the Marda project.

Shares in Ramelius are trading 0.36 per cent lower today, for $1.38 apiece. The company’s market cap is currently valued at $911.6 million.

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