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Ramelius shares surge on record quarterly output

9th July 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Shares in ASX-listed Ramelius Resources climbed 24% on Tuesday as the gold producer announced record production from its Mt Magnet mine, in Western Australia.

Mt Magnet produced 17 100 oz for the June quarter, which was a 17.5% increase on the prior three months.

The gold producer said in an operational update on its Western Australia-based assets that it was reviewing its capital and operational costs at Mt Magnet, to ensure the project was cash-flow positive in the current gold price environment.

Ramelius also reported that its flagship Wattle Dam operation produced remnant and acquired third-party ore of some 1 900 oz of gold in the June quarter.

Updating the market on the Western Queen South project, the miner stated that the pre-strip of the high-grade project was proceeding on schedule, with 560 000 bank cubic meters of a pit total of 1.3-million bank cubic meters had been moved by the end of June.

Western Queen South would deliver its first ore at the end of August.

In addition, site setup activities at Ramelius’ Coogee gold project had started, with mining set to begin next month. The high-grade Coogee ore would be milled at the company’s Burbanks treatment plant from November.

In the interim, Ramelius would continue toll-milling third-party ore.

Meanwhile, the company was advancing discussions with South African gold miner Gold Fields regarding the settlement of its Vivien deposit, near the Agnew mine, and would provide an update once these discussions were completed.

At the end of June, Ramelius had cash and gold on hand of A$37.4-million, and available-for-sale securities of A$3-million.

A detailed June quarterly report would be released later this month.

Shares in the company traded at A$0.13 apiece in Sydney on Tuesday afternoon.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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