THE BOURSE WHISPERER: Ramelius Resources has continued to make its presence felt with the realms of the acquisition scene.
Following its signing of a Sale and Purchase Agreement with Breakaway Resources, Ramelius has picked up the pen again to sign a Letter of Intent to purchase the Vivien gold deposit from the Agnew Gold Mining Company a subsidiary of Gold Fields Limited.
Vivien gold deposit location plan. Source: Company announcement
The purchase price for the Vivien deal is $10 million cash and a production royalty.
Ramelius will also enter into a toll milling agreement with Gold Fields for ore produced from the project.
The purchase of the project is subject to completion of formal agreements and the consent of the relevant government authorities.
The Vivien gold deposit is located near the Agnew Gold Mine, west of the town of Leinster in Western Australia.
According to Ramelius the deposit is a high-grade vein style deposit and has an estimated Indicated Resource of 579,000 tonnes at 8.3 grams per tonne gold for 154,000 ounces of gold.
“After completion of the formal agreements and government consents, Ramelius intends to undertake a mining study for the project and to complete further drilling intended to extend the orebody at depth and down plunge,” Ramelius Resources said in its ASX announcement.
“This acquisition, if completed, allows the company to achieve its growth targets and objective of having multiple gold operations.
“In addition, the provision of toll milling by Gold Fields will reduce the capital and time frame required to develop the project, and allows the milling to be completed at a cost below that which could be achieved with a small standalone mill.”