JOHANNESBURG (miningweekly.com) – The board of ASX-listed Ramelius Resources has given its approval to start mining at the A$16.3-million Vivien gold project, near Leinster in Western Australia, which the company bought from Gold Fields in July last year.
Ramelius said on Wednesday that it would mine the Vivien deposit as a three-year underground project with a total mining inventory of 451 000 t at 7.6 g/t for 109 000 oz. The company planned to start the underground decline on June 1, and said it expected to intersect first ore in November.
Ramelius awarded the main underground mining contract for the project to PYBAR Mining Services.
The approval for Vivien follows on the recent decision to start mine development at the nearby Kathleen Valley. These operations would provide high-grade feed to the Mt Magnet treatment plant.
To lock in operating margins over Mt Magnet production and the Vivien and Kathleen Valley mine developments, Ramelius had entered into further gold sales for 39 489 oz over the next two years. The latest forward sales brought its total hedge to 86 689 oz at an average price of A$1 570/oz and represented about 40% of the group’s total gold production forecast over the period.
The Vivien approval also coincided with the execution of a finance facility with Commonwealth Bank of Australia (CBA). The CBA facility would provide Ramelius with A$10-million for drawdown if, and when, required, based on a 12-month holiday period, followed by a 12-month repayment period on any amounts drawn down.