Ramelius Resources (ASX:RMS) has further broadened the it's gold operations in Western Australia by signing a Sale and Purchase Agreement with Xstrata Nickel Australasia Operations, and Giralia Resources, to acquire Xstrata's Kathleen Valley tenements.
This will also include the Kathleen Valley and Mount Harris Joint Ventures.
The Kathleen Valley tenements are located 50 kilometres north of Leinster in Western Australia and contain a JORC Resource of 130,000 ounces of gold in three deposits.
Ramelius intends to complete further resource definition drilling within the next six months to upgrade the resources to Indicated, for use in future mine planning studies.
Scoping studies undertaken on behalf of Xstrata indicate the potential for high grade open pit developments with low capital costs.
Upon completion of the Sale and Purchase Agreement, the signing of ancillary Deeds of Assumption and Assignment plus a Nickel Offtake and Clawback Agreement with Xstrata, Ramelius will pay $3.645 million cash for Xstrata's Kathleen Valley tenements.
In addition Ramelius has agreed to pay $405,000 cash to acquire the adjacent Kathleen Valley Joint Venture and Mt Harris
Joint Venture.
This continues Ramelius' acquisition trail following the recent purchase of the Vivien Project from Agnew Gold Mining Company, a subsidiary of Gold Fields Limited, for $10 million.
The Vivien gold project is a high grade vein style deposit, and carries a current Indicated Mineral Resource of 579,000 tonnes at 8.3 grams per tonne for 154,000 ounces of gold.
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