PERTH (miningweekly.com) – ASX-listed gold miner Ramelius Resources on Tuesday upgraded its full-year production guidance from 78 000 oz to 83 000 oz, as its Mt Magnet mine continued to defy expectations.

Ramelius earlier this month reported that the Mt Magnet mine had delivered a record 23 235 oz of gold during the quarter ended December, contributing to a group quarterly production of 24 241 oz of gold.

This was compared with the 22 336 oz of gold delivered during the three months to September.

Ramelius said that the Galaxy openpit operations at the Mt Magnet project were now accessing higher-grade ore zones, resulting in the higher gold output.

The production levels at Mt Magnet were expected to continue in the March quarter, with overall head grade expected to reach 1.9 g/t gold.

In December, the board approved the start of the Perseverance openpit cutback, which was expected to start this month and take some two years to complete. The cutback would provide a major ore source for Mt Magnet, starting in 2016 financial year.

The record production in the December quarter and the start of the Perseverance openpit has resulted in Ramelius lifting its expected full-year output, while also decreasing its expected all-in sustaining costs from A$1 300/oz to A$1 150/oz.

“We are pleased to realise our forecast of an improved December quarter at Mt Magnet, with the record performance being an added bonus,” said CEO Mark Zeptner.

“Ramelius expects another strong quarter from the operation, which certainly positions us well in terms of development decisions for our Vivien and Kathleen Valley projects.”

Zeptner added that the start of these high-grade gold projects would mark key milestones for the company, as it moved to expand its production to over 100 000 oz/y.

The Kathleen Valley tenements contain a Joint Ore Reserves Committee-compliant resource of 130 000 oz over three deposits.

A feasibility study into the Vivien gold project has estimated that the project would deliver about 451 000 t, grading 7.6 g/t ore over a mine life of 30 months, to deliver about 109 000 oz of gold.