PERTH (miningweekly.com) – A new life-of-mine (LoM) plan for gold miner Ramelius Resources has confirmed the company’s ability to produce more than 1.4-million ounces of gold, at an average all-in sustaining cost of between A$1 250/oz and A$1 350/oz, over a six-year mine life.

“Building on last year’s landmark result of over one-million ounces contained within a detailed mine plan, the forward outlook of almost 1.5-million ounces following a record year of production in 2020, is a very pleasing result for Ramelius,” said MD Mark Zeptner.

“It is a further testament to the work done by all our team that we can articulate a longer term plan with production scale, strong margins and an achievable approach to reserve replacement that gives us confidence that this visibility around mine life can be extended going forward.”

The new LoM plan incorporated the prefeasibility study for the Penny gold project, in Western Australia, which has estimated that the project could deliver 230 000 oz of gold.

The study estimated that the project would require a capital investment of A$23.5-million, and would have an all-in sustaining cost (AISC) of A$703/oz.

The Penny gold project was acquired by Ramelius earlier this year through an off-market takeover offer of fellow-listed Spectrum Metals. Development for the project is slated to start in the December quarter of 2021.

Meanwhile, a preliminary scoping study for the Eridanus underground operation, at Mt Magnet, has estimated that a further 95 000 oz of gold could be recovered from the project area over a three-year period, with an up-front capital investment of A$20-million, and at an AISC of A$1 550/oz.

New modelling into the Eridanus orebody is expected to be completed in the September quarter of this year.

Ramelius on Tuesday told shareholders that further resource extensions were also planned from current operations, with the miner having set aside an exploration budget of between A$25-million to A$30-million for the 2021 financial year.