Resolute Mining Limited (ASX:RSG) (LON:RSG) continues to grow the Ravenswood Gold Project in Queensland with ore reserves increasing by 1 million ounces, or 58%, to 2.7 million ounces.
These upgraded reserves support the potential for higher throughput and long mine life for the Ravenswood Expansion Project (REP).
This is supported by a strategic and technical review of the project which identified efficiency and scale improvements.
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The improvements are expected to support lower unit costs and boost economic outcomes.
Resolute’s managing director and CEO John Welborn said: “One million additional ounces of gold in ore reserves at Ravenswood is an excellent outcome from our recent drilling programs and study work.
“Available gold resources at Ravenswood now exceed five million ounces demonstrating its status as an outstanding Australian gold mine.
“With almost three million ounces of gold in ore reserves we are now directing our ongoing study work to focus on an optimised REP that can produce approximately 200,000 ounces annually over a 15-year mine life.”
These upgrades to Resolute’s available gold inventory at Ravenswood are net of depletion as at June 30, 2019.
Resolute reached a new 12-month high of A$1.80 this morning and since June 11, shares are up 80% supported by higher gold prices and the company’s golden story in West Africa and Queensland.
Resources expanded 24%
The company has also expanded resources by 24% to 270 million tonnes at 0.7 g/t for 5.9 million ounces.
This updated estimate for the combined Ravenswood deposits includes Buck Reef West, Nolans and Sarsfield.
These deposits are within a radius of 1.5 kilometres from the Nolans Processing Plant.
The new resource estimate includes drilling completed during 2019 and is based on sampling information within a database comprising 2,100 open hole, reverse circulation and diamond holes totalling 285,725 metres.
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Welborn said: “The expanded gold inventory demonstrates that Ravenswood presents a unique opportunity for transformation into a large-scale, low-cost operation with an exceptionally long mine life that will deliver considerable economic benefits to the Ravenswood community, the Queensland Government and Resolute shareholders.”
Strategic review of REP
Mining, metallurgical and engineering studies performed this year as part of Resolute’s ongoing strategic review of the REP supported an updated ore reserve at Ravenswood of 115.4 million tonnes at 0.7 g/t for 2.7 million ounces of gold.
These studies focused on optimisation and potential for increased throughput driving improved production and cost outputs.
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The optimisation work has identified opportunities to expand annual mill throughput and gold production through developing and mining the Buck Reef West, Sarsfield and Nolans East ore bodies.
Ravenswood is about 95 kilometres southwest of Townsville and 65 kilometres east of Charters Towers in northeast Queensland.