Ramelius Resources (ASX: RMS) has discovered high grade gold at depth at the Water Tank Hill pit at the company's wholly owned Mt Magnet gold mine in the Murchison Province of Western Australia.
The latest highlights include:
- 11 metres at 15.83 grams per tonne (g/t) gold from 224 metres, including 7 metres at 23.45g/t gold
- 19 metres at 5.98g/t gold from 195 metres, including 5 metres at 15.78g/t gold; and
- 19 metres at 9.37g/t gold from 261 metres, including 9 metres at 12.56g/t gold.
Ramelius has drilled a little over 1,500 metres of reverse circulation drilling this quarter, with precollars for two deeper diamond holes.
The Water Tank Hill pit is located 4 kilometres from the company's Checkers Mill and just 250 metres from the historical St George underground mine portal.
Gold mineralisation at Water Tank Hill is associated with brecciated and sulphidic banded iron formation (BIF) sequences, and occupies a series of sub-vertical, high grade plunging shoots within the BIF fold closure.
Ramelius said that at around 200 metres below the surface, the high grade shoots are displaced by a low angle reverse fault.
Reverse circulation and diamond drilling is ongoing during November.
Quarterly production
Ramelius produced 20,066 ounces at a cash cost of A$1,188 during the September 2012 quarter.
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