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- Gilbey’s underground shows new mine potential.
- Gilbey’s presents near-term upside opportunity to exceed targeted group production.
- Delineating mineralisation down-dip of the current resource estimate.
- Large exploration target to be tested.
Ramelius Resources (ASX: RMS) has this week obtained “exceptional” drilling results from the Gilbey’s underground and surface targeting at the Dalgaranga gold project in Western Australia, with fresh results from Gilbey’s identifying a significant growth opportunity for the producing operation.
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Executive GM for Exploration, Peter Ruzicka, said the programs at Dalgaranga were designed to delineate new mineralisation down-dip of the current mineral resource estimates while also converting the existing inferred mineral resources in order to advance studies on potential new open pit and underground mining opportunities at Gilbey’s and the surrounding deposits.
“We continue to be impressed by what the Dalgaranga system has to offer with high-grade remaining a consistent feature,” Mr Ruzicka said.
“Our exploration strategy, targeting high-grade opportunities, is delivering. These early drill results further enhance our confidence that Gilbey’s Underground (West Winds and Four Pillars) has the potential to become the next underground mine at Dalgaranga.
“Our strategy of defining additional resources at these existing assets while making new discoveries within the northern corridor is progressing well. We have yet to realise the full potential for new opportunities to grow within this developing operation for Ramelius.”
At Gilbey’s, Ramelius is investigating the potential to displace the low-grade portion of mill feed scheduled in FY29 and FY30 by establishing Gilbey’s Underground mine alongside the existing Never Never Underground.
“This presents a near term upside opportunity to exceed targeted group production of 525,000 per annum by FY30,” Mr Ruzicka explained today.
Gilbey’s Underground currently has total mineral resources of 6.9 million tonnes (Mt) at 1.9 grams per tonnes (g/t) for 380,000 ounces of gold.
A non-reportable, unclassified estimation has also been generated over an exploration target area and used to calculate a range of tonnes and grade between 2.1 and 4.7 Mt at 1.5 to two g/t for 100,000 to 300,000 ounces.
Mr Ruzicka said surface activities at the Plymouth-Sly Fox area at Dalgaranga are aimed at proving up an open-pit cutback and potentially a third branch of underground mining.
Plymouth-Sly Fox is not in the mine plan, which he said provides further upside opportunity to include higher-grade material into the mill feed schedule.
RMS will open at $4 today. Mkt cap $7.596B.
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