9 September 2013
For Immediate Release
Company Progress Report
The Directors of gold producer Ramelius Resources Limited (ASX:RMS) are pleased to provide the following progress report on the Company's operating activities since the end of the June 2013 quarter:
Mt Magnet Gold Mine
9 September 2013
ISSUED CAPITAL
Ordinary Shares: 338M
DIRECTORS
Chairman:
Robert Kennedy
Non-Executive Directors:
Kevin Lines
Michael Bohm Managing Director: Ian Gordon
www.rameliusresources.com.au [email protected]
RAMELIUS RESOURCES LIMITED
Registered Office
Suite 4, 148 Greenhill Road
Parkside, Adelaide
South Australia 5063
Tel +61 8 8271 1999
Fax +61 8 8271 1988
Operations Office
Level 1, 130 Royal Street
East Perth WA 6004
Tel 08 9202 1127
Fax 08 9202 1138
Production for the first two months of the September 2013 quarter was 12,200 fine ounces of gold, with estimated total production of 18,000 ounces of gold for the September 2013 quarter. Gold sales for July and August totalled $19 million.
Mining of ore from Western Queen South commenced last week and is now expected to be delivered to Mt Magnet for processing in October 2013. Development of Western Queen South was slowed down during August due to a requirement to rectify a small slip in the eastern wall of the pit. A total of
880,000 BCM's of a pit total of 1,300,000 BCM's have been moved at the end of August 2013.
Total production at Mt Magnet in the December 2013 quarter is expected to be higher at between 21,000-23,000 ounces of gold, which includes first production from Western Queen South.
Vivien Gold Project
Planning for the commencement of exploration and resource drilling at the advanced Vivien gold project is underway, with on ground work expected to commence in October 2013. An initial drilling programme of 10 holes is planned on the deposit to increase confidence in the current resource, gather geotechnical information, metallurgical samples and test for extensions of the high grade lode at depth.
Vivien is an exciting new project for Ramelius and 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.
It is expected that any 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.
Photograph 1: Existing high grade Vivien drill core from hole VVDD176 (2.5m @ 78 g/t Au - true width 1.7m)
Coogee Gold Project
Mining commenced at the Coogee project in early August 2013 and as at the end of the month approximately 290,000 BCM's of a pit total of 1,300,000 BCM's had been moved. First ore is 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.
Photograph 2: Mining underway in the Coogee open pit in August 2103
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Exploration
Over the past two months Ramelius 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.
Follow-up drilling at the Angel Wing project in Nevada, USA has intersected similar results to last year's drilling, with the best result of 16.7m @ 2.16 g/t Au. Whilst the results confirm the gold system at Angel Wing, they do not justify any further expenditure and consequently Ramelius has elected to withdraw from the Joint Venture in order to focus on other available opportunities. Full details will be provided in the September 2013 Quarterly Activities Report.
Ramelius is currently assessing a number of new grass roots and advanced exploration projects to add to its portfolio of projects.
At 30 June 2013, the Company held cash and cash equivalents totalling A$33.8 million.
For further information contact: Mr Ian Gordon
Managing Director
Ph: 08 9202 1127
The Information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Rob Hutchison. Rob Hutchison is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Rob Hutchison is a full-time employee of Ramelius Resources Limited and consent to the inclusion in this report of the matters based on his information in the form and context in which it appears.
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