Ramelius Resources completes Water Tank Hill resource estimate

THE DRILL SERGEANT: Ramelius Resources (ASX: RMS) has completed a Mineral Resource Estimate for the Water Tank Hill deposit situated alongside the company’s Mt Magnet gold mine in central Western Australia.

The new estimate for the Water Tank Hill satellite deposit has come in at 63,000 ounces of gold.

Ramelius indicated the Water Tank Hill Resource combined with the St George underground operation Resource to provide total Resources of 125,000 ounces at a grade of 5.2 grams per tonne gold that can potentially be accessed from the St George decline.

 

Water Tank Hill and St George deposits showing pits, underground
workings and resource models. The St George decline extends to 290m
below surface. Source: Company announcement

 

“Ramelius believes that there are now sufficient Resources within close proximity of the St George decline to justify commencing a mining study to demonstrate the economic viability of a mining operation,” Ramelius Resources said in its ASX announcement

“External mining consultants have been engaged to complete a mining study for the Water Tank Hill / St George Resources which is expected to be completed in the June 2013 quarter.

“The mineralisation at Water Tank Hill and St George also appears to be open down plunge and potential exists to increase Resources from future underground drilling.”