Ramelius Resources (ASX: RMS) expects production from its Mt Magnet Gold Mine in Western Australia to increase in the quarter ending 31 December 2013 to between 21,000 ounces and 23,000 ounces of gold.
This includes first production from the Western Queen South deposit, which commenced mining last week, despite slower development due to a requirement to rectify a small slip in the eastern wall of the pit.
Production for the first two months of the September quarter was 12,200 ounces with 18,000 estimated to be produced in the entire quarter.
Other projects
Ramelius is also planning for exploration and resource drilling at the Vivien gold project to increase confidence in the current resource, gather geotechnical information, metallurgical samples and test for extensions of the high grade lode at depth.
Vivien has a number of the same characteristics as the Company’s former Wattle Dam gold mine, in that it has high grade, a significant coarse gold component and does not require the capital associated with building a new processing plant.
Ore mined at Vivien will be treated at the Agnew gold plant under a toll treatment arrangement with Gold Fields or trucked to Mt Magnet for treatment.
The company has also started mining at the Coogee project with first ore expected to be mined in October with milling commencing in November 2013.
A total of 5,000 ounces of gold from the Coogee project is expect to be processed at Ramelius’ Burbanks treatment plant during the December 2013 quarter
Over the past two months, the company has been drilling the Saturn Deeps project below its current Mount Magnet mining operations to increase confidence in the resource to an Indicated status.
Once all results have been received, a new Resource Estimate will be completed and a mining study commenced.
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