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Highlights
- Shares of Ramelius Resources were trading weak on Friday.
- At 11.40 AM AEST, Ramelius’ shares were trading 5.47% lower, at AU$0.65 each.
- This underperforms ASX 200 Materials index which was 1.75% lower, at 15,606.90 points.
Shares of Ramelius Resources Limited (ASX:RMS) were trading weak on Friday despite the explorer sharing no price-sensitive news. The shares of Australia-based gold mining, production, and exploration company were trading 5.47% lower, at AU$0.65 each, on ASX at 11.40 AM AEST.
This underperforms ASX 200 Materials index which was 1.75% lower, at 15,606.90 points at 11.41 AM AEST. In terms of sectors, all 11 sectors were down, and materials was one of the worst performing sectors.
Why are Ramelius' shares trading lower?
Ramelius share might be under pressure today due to weakness in the overall materials sector. On 15 September 2022, Ramelius updated important development on exploration projects related to its portfolio of gold properties in Western Australia (WA).
According to the latest ASX filing by Ramelius, the company has intersected its maiden ore drive at its Penny gold mine in Western Australia, and an adjacent airstrip is almost finished.
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 15 September 2022
Once finished, the airstrip at the Penny mine is expected to lower travel expenses and time spent getting to and from the project site. The business reported that the decline in rehabilitation at the Galaxy Underground mine in Mount Magnet, which is currently 550 meters below the portal, was also developing well.
An updated mineral resource for this area is expected before the year-end. Ramelius has resumed its drilling activity in the Bartus East zone in the Mt Magnet area. This comes soon after Ramelius updated (on 13 September) estimates of mineral resources and ore reserves as of 30 June 2022. Mineral resources increased by 15%, while total ore reserves remained stable with growth that matched mining depletion.
Image Source: © Palerider | Megapixl.com
Penny Gold Mine
The changeover to the underground team took place in late March and early April, and the open pit cutback at Penny West was finished in March 2022. Late in April 2022, the first explosion was fired into the subsurface portal, and late in August 2022, the first ore drive crossed across.
Most of the surface infrastructure, including the new airstrip, is finished. The airstrip would soon be used, cutting down on travel time and flight expenses compared to the 25 km north of the mine currently in use at Youanmi airfield.
Update on resources and reserves
The estimated total mineral resources include 130 Mt at 1.5 g/t Au for 6.2 Moz of gold and estimated total ore reserves are 1.1 Moz of gold from 18 Mt at 1.8 g/t Au.
Mineral resources increased when the Rebecca project was acquired, and efforts are currently being made to create ore reserves for this project. Despite a year's worth of mining depletion, ore reserves were generally kept constant.
