Early this morning, mining company Ramelius Resources released mineral resources and ore reserves statement for the period ended 30 June 2018. Total mineral resources have surged by 36%, reaching to 70.5 million tonnes at 1.5 g/t Au for 3,476,000 ounces of gold. Whereas, ore reserves have gone up by 54% to 13.3 million tonnes at 1.6 g/t Au for 698,000 ounces of gold, driven by exploration success at Eridanus, Hill 60 and Shannon at Mt Magnet and the acquisition of the Edna May project.
In the mineral resource statement as at 30 June 2018, total resources from measured, indicated and inferred were estimated to be 70.5 million tonnes consolidating contribution from six projects – Mt Magnet, Vivien, Edna May, Kathleen Valley, Coogee and Western Queen.
Total Ore reserve combining proven and probable has included operational performance at Mt Magnet, Vivien, and newly acquired Edna May. The company said that all ore reserves have been reported from measured and indicated resources only. As per company’s information, current operational open pits are Milky Way, Stellar, Stellar West, Shannon and Edna May.
RMS Managing Director Mr Mark Zeptner said “Once again, we (company) have seen a healthy overall increase in both Mineral Resources and Ore Reserves at Ramelius, whilst at the same time delivering record production of more than 200,000 ounces of gold for the 2018 financial year.” He added that if the takeover of Tampia Hill project from Explaurum Limited gets successful, further significant reserves will consolidate the company to realize more than 200,000 ounce per annum of gold production.
Along with this update, the company has also announced the underground mining commencement at Edna May. Ramelius Resources told that the company will begin underground mining operations at Edna May Gold Mine near Westonia, Western Australia in early 2019. Mark Zeptner said: “The decision to move down the underground path at Edna May is not one that has been taken lightly.”
It is said to be in line with company’s wider regional development strategy for the area. The miner has also confirmed that Edna May production for July and August has gone ahead guidance to 17,088 ounces.
Further, in addition to the commencement of underground mining, Ramelius also intends to conduct further diamond drilling during the 2020 Financial Year below the current reserve envelope to target further extensions to a depth of 600-700 metres below surface.
On the back of record production of 208,118 ounces of gold at an AISC of $1,191 per ounce for the year, Ramelius Resources reported excellent financial performance with 74% improvement in net profit after tax to $30.8 million for the year ended 30 June 2018. EBITDA grew 50% to $127.0 million with the increase driven by the acquisition of Edna May in October 2017, higher realized gold prices and lower operating cost.
In addition, Ramelius has forecast to produce 200,000-220,000 ounces of gold at an AISC of A$1,150-$1,250/oz for the 2019 Financial Year.
Following the announcements, Ramelius Resources’ share price surged 5.495% to $0.480 on 18 September 2018. The stock has seen a performance change of +18.18% over the past one year.
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