PERTH (miningweekly.com) – Gold production for ASX-listed Ramelius Resources fell during the quarter ended September on the back of a slightly lower gold grade and a five-day planned maintenance shutdown at its Mt Magnet gold mine, in Western Australia.
During the quarter under review, Ramelius produced 22 535 oz of gold, compared with the 25 422 oz of gold produced in the previous quarter. The Mt Magnet operation produced 18 575 oz of gold during the quarter, while the Burbank Mill project produced a further 3 960 oz of gold.
“We were pleased to see that in a quarter where the gold price received averaged A$1 380/oz, Ramelius was also able to marginally increase our cash and gold on hand, signifying that the Mt Magnet operations is indeed displaying the improved performance we have claimed,” said Ramelius CEO Mark Zeptner.
“In fact, Mt Magnet is forecast to have a better quarter again in the December 2014 quarter, giving the company a sound footing upon which to make any decisions related to the Vivien project funding.”
The Mt Magnet operation was expected to produce between 19 000 oz and 21 000 oz during the December quarter, and a full-year production of some 74 000 oz.
The Vivien project, meanwhile, would require an expected A$20-million capital spend to deliver about 109 000 oz of gold over a 30-month mine-life.
“Further to this, the Kathleen Valley project, with its low start-up cost, can be self-funded assuming it is ready for development in the June 2015 quarter,” Zeptner said.
The Kathleen Valley tenements contain a Joint Ore Reserves Committee-compliant resource of 130 000 oz over three deposits.