Ramelius Resources (ASX:RMS) has started mining at its Western Queen South gold project in Western Australia.
The project is a high grade open pit with a forecast mine life of 12 months producing about 23,000 ounces of gold at a head grade of 3.9 grams per tonne.
The ore from the project will be delivered to Mt Magnet for processing from August 2013 and will increase production at the Mt Magnet project to 100,000 ounces in Fiscal Year 2013-14.
The Western Queen South project represents the first of a number of smaller high grade satellite deposits to be mined at Mt Magnet that will increase overall grade as well as potentially maintain production from the Mt Magnet operations at the 100,000 ounce per annum mark for the foreseeable future.
The company had a cash balance of $43.08 million.
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