THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) has extended its gold operations in Western Australia with the acquisition of the Kathleen Valley gold project.
Ramelius has signed a Sale and Purchase Agreement with Xstrata Nickel Australasia Operations (XNAO), a subsidiary of Glencore, and with Giralia Resources.
The company will acquire 100 per cent of the XNAO Kathleen Valley tenements and 100 per cent of the tenements held by XNAO and Giralia as the participants in the Kathleen Valley and Mount Harris Joint Ventures.
The XNAO Kathleen Valley tenements are located 50 kilometres north of Leinster in Western Australia and contain a JORC (2012) Mineral Resource of 130,000 ounces of gold in three deposits – Mossbecker, Yellow Aster and Nils Desperandum.
Kathleen Valley gold project land package, relative to the recently
acquired Vivien gold project at Leinster. Source: Company announcement
Collectively the package will be referred to as the Kathleen Valley gold project.
“The acquisition of the Kathleen Valley gold project will add significantly to Ramelius’ recent acquisition of the Vivien gold project, enable cost reduction synergies across both projects and significantly build on the company’s strategy to create a high yielding, positive cash flow mining business centred on its established Mt Magnet milling operations,” Ramelius Resources managing director Ian Gordon said in the company’s announcement to the Australian Securities Exchange.
Ramelius said it intends to complete further resource definition drilling within the next six months to upgrade the resources to Indicated, for use in future mine planning studies.
Scoping studies undertaken on behalf of XNAO have indicated potential for high-grade open pit developments with low capital costs.
Upon completion of the necessary paperwork, Ramelius will pay XNAO $3.645 million cash for 100 per cent of its Kathleen Valley tenements as well as $405,000 cash for 100 per cent of the adjacent Kathleen Valley and Mt Harris Joint Ventures.