Ramelius Resources registers huge resource increase, speeds up Penny Gold Project

  • November 10, 2020 03:55 PM AEDT
  • Team Kalkine
Ramelius Resources registers huge resource increase, speeds up Penny Gold Project


  • ASX-listed Ramelius Resources has announced a 22% increase in mineral resource at Edna May to 31 million tonnes @ 1.1g/t at 1 million oz.
  • The Company has also released the highly encouraging results of the Feasibility Study of Penny at Mt Magnet.
  • The Company has scheduled the mining operation at Penny in the June 2021 quarter. The AISC cost has been reduced to A$633/oz from the earlier estimates of A$703/oz.
  • Ramelius Resources reported total gold production of 71,344oz with AISC of A$1,241/oz during the September 2020 quarter.
Gold MTF non-AMP

Western Australian gold miner Ramelius Resources Limited (ASX:RMS) has shared the results of the Feasibility Study of the Penny prospect at the Mt Magnet gold mine. The encouraging financial outcomes from the Feasibility Study have motivated the Company to prepone the mining operation to the June 2021 quarter, originally scheduled for the September 2021 quarter.

The Penny Feasibility Study has led to a reduction in All-in-Sustaining Cost (AISC) to A$633 per ounce from the Pre-Feasibility Study estimates of A$703 per ounce. The study also showed a major hike in the upfront capital cost from A$23.5 million to A$34.5 million. The increase has been majorly associated with the allocation of the costs from the first ore production to the commercial production from the prospect.

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Ramelius Resources has completed the infill and extensional diamond drilling program at its Edna May mine. The Mineral Resource has been updated and increased significantly by 22% to 31 million tonnes @ 1.1g/t at 1 million oz.

Edna May hosts the gold mineralisation as sheeted quartz with strike in the North and dip towards the West. Ramelius drilled 75 holes with a combined depth of 7,390m. The Lodes Mineral Resource of the mine stands at 490,000 tonnes @ 4.5g/t at 72,000oz.

Operational Updates

Ramelius Resources produced 71,344oz of gold with AISC of A$1,241/oz during the September quarter. The Company surpassed its own production guidance of 65,000-70,000oz with AISC guidance of A$1,250-1,350/oz.

Ramelius Resources earned a total revenue of A$ 163.3 million with gold sales of 70,299oz at an average price of A$2,323/oz.

  1. Mt Magnet
    • Open Pits: During the September quarter, the open-pit production was relatively lower but of a higher grade. Production reported from open pits was 96,237 tonnes @ 4.30g/t for 13,315 ounces.
    • Underground: The Hill 60 underground production was 44,026 tonnes @ 2.1g/t for 2,971oz. The Shannon underground production was 43,796 tonnes @ 6.54g/t for 9,203oz.
    • Vivien Mine: The gold production from the mine was 47,048 tonnes @ 4.46g/t for 6,579 oz.

The Company has set the production guidance for the mine project to be 39,000oz for the December 2020 quarter.

  1. Edna May

Underground production remained steady throughout the quarter. The reported production was 59,166 tonnes @ 4.52g/t for 8,591oz in the September quarter. The Greenfinch open pit made excellent progress in production during the quarter.

The open pit produced 271,045 tonnes @1.09g/t for 9,528oz.

 The Company has managed to create a stockpile of 330,000 tonnes of ore stock at Marda operations, which is enough for the next six-month processing. Marda produced 220,221 tonnes @1.82g/t for 12,910oz of contained gold.

The Company has set the production guidance for the mine project to be 30,500oz for the December 2020 quarter from Edna May.

Stock Price Movement

The stock of the Company traded at A$2.045 with a market cap of A$1.89 billion as on 10 November 2020 (AEST 3:30 PM).



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