THE BOURSE WHISPERER: Ramelius Resources (ASX:RMS) has made the decision to go ahead with the development of the company’s Western Queen South gold project in Western Australia.
The Western Queen South open pit gold deposit is located approximately 90 kilometres northwest of Ramelius’ producing Mt Magnet mine.
The company said the development of the Western Queen South pit is part of its strategy to add to its base load gold production at Mt Magnet.
Mining at Western Queen South is expected to commence in January 2013.
Ramelius said it anticipates the new pit will add approximately 23,000 ounces of gold to Mt Magnet production for the 2013 calendar year.
“This project has a very attractive total production cost per ounce of $900 per ounce,” Ramelius Resources managing director Ian Gordon said in the company’s announcement to the Australian Securities Exchange.
“We will be looking to add further opportunities such as Western Queen to our base load production at Mt Magnet where operations are nearing full production rates.”
The Western Queen South decision is subject to the receipt of all the necessary regulatory approvals currently being considered by the relevant government departments.
Ramelius recently generated a revised resource model, pit optimisation and design to progress the development of Western Queen South on the back of resource drilling and metallurgical test work it completed during the year.
A new Ore Reserve for the deposit was also generated and announced in September 2012.
Source: Company announcement
Ramelius said Western Queen South is expected to be mined for approximately 12 months.
Ore from the pit cutback operation will be hauled to Mt Magnet for processing at the company’s Checkers Mill.