Ramelius produces 100k ounces of gold

THE BOURSE WHISPERER: Western Australia-focused gold producer Ramelius Resources produced just over 100,000 ounces of gold from its wholly owned Wattle Dam gold mine for the year to 30 June 2011.

The result flows on from a strong June quarter production of approximately 25,500 ounces of gold at the mine located 25 kilometres south west of Kambalda.

“This is an excellent outcome for the full year, and given the excellent margin on this high grade gold production, the company looks forward to continued success at Wattle Dam in the future,” Ramelius Resources chairman Robert Kennedy said in the company’s ASX announcement.

The June quarter production result brings total gold production for the Wattle Dam mine to over 200,000 ounces, including production from the former open pit of 51,000 ounces.

Ramelius is continuing to develop the next stage of production at Wattle Dam with the decline now 340 metres below surface, some 20m from the base of the new mining zone Block D.

The decline extension is expected to be completed by the end of August.

Development of ore drives on the 60m RL and 40m RL has begun and this ore will be treated in the September and December 2011 quarters.

New extensional exploration drilling below Block D will now begin in the first week of August 2011, after a delay by the contractor in making a rig available.

The company is also moving along at its Mt Magnet project, located north east of Perth, with the planned schedule for gold production to begin in January 2012.

The company said it is confident discussions with the Western Australian Department of Mines & Petroleum could result in its mining plan being accepted soon, clearing the way for mining to commence in late August 2011.