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THE DAILY ROADHOUSE

 

Ramelius Resources Makes Move on Spectrum Metals

THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) and Spectrum Metals (ASX: SPX) have struck a Bid Implementation Agreement (BIA) that will result in Ramelius offering to acquire all of the issued and outstanding ordinary shares in Spectrum that it does not already own.

Red 5 Increases Darlot Reserve and Resource Estimates

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) updated the JORC Code 2012-compliant Ore Reserve and Mineral Resource estimates for the company’s Darlot gold mine in Western Australia.

 

Ramelius Resources Makes Move on Spectrum Metals

THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) and Spectrum Metals (ASX: SPX) have struck a Bid Implementation Agreement (BIA) that will result in Ramelius offering to acquire all of the issued and outstanding ordinary shares in Spectrum that it does not already own.

Spectrum Shareholders will receive one Ramelius share for every ten Spectrum shares held and cash consideration of 1.7 cents per Spectrum share held, valuing Spectrum shares at 15 cents each – a 52 per cent premium to Spectrum’s last closing price of 9.9 cents on 7 February 2020.

On Ramelius’ radar is Spectrum’s 100 per cent-owned Penny West gold project, located approximately 150 kilometres south-east of Ramelius’ Mt Magnet mining and processing operations north-east of Perth in Western Australia.

Spectrum recently announced a maiden Mineral Resource estimate for the Penny West gold project of 799,000 tonnes at 13.8 grams per tonne gold for 355,500 ounces, including 569,000 tonnes at 16.8g/t gold for 306,800 ounces at Penny North.

The two companies consider the proximity of Ramelius’ Mt Magnet processing facility to Spectrum’s Penny West gold project provides potential to realise capital cost savings and operational synergies in developing the Penny West while maintaining exposure to ongoing exploration potential.

“There is clear logic in the combination of Spectrum’s assets with Ramelius’ WA operations,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

“After the successful acquisition of the Marda and Tampia Hill gold projects in 2019, Ramelius is focussed on building on its growth strategy to extend mine life and maximise the value of existing infrastructure in its portfolio.

“This compelling offer is the next step in that growth strategy and is expected to provide significant benefits to both Spectrum and Ramelius shareholders.”

The deal appears a good one for shareholders of Spectrum, who will not only remain exposed to all of the upside from exploration and development of Penny West but will benefit from having access to cash flow generating assets at Edna May, Mt Magnet and Vivien, while gaining exposure to the Marda and Tampia Hill projects through being a shareholder of the enlarged combined group.

“The last year has been one of exceptional growth for Spectrum which we are particularly proud of,” Spectrum Metals chairman Alex Hewlett said.

“The Penny West gold system is developing into one of significant value, I am firmly of the view that this transaction with Ramelius will unlock the full value of Penny West for the benefit of all of our shareholders.

“The combination of Penny West with the existing assets of Ramelius will build a gold business capable of delivering exceptional future returns for our shareholders.”

 

Email: ramelius@rameliusresources.com.au

Web: www.rameliusresources.com.au

 

Ramelius Resources Beats December Gold Production Guidance

THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) reported reaching December 2019 Quarter Production Guidance by producing 47,902 ounces of gold across its Western Australian operations.

Ramelius Resources explained the Group Quarterly gold production of 47,902 ounces easily beat its Guidance of 45,000 to 50,000 ounces.

Contributing operations were Mt Magnet with 30,230 ounces, Vivien with 7,726 ounces, and Edna May, which delivered 9,946 ounces.

Ramelius continued to progress development activities during the Quarter with key achievements including stoping production to commence at the Shannon underground mine at Mt Magnet, and the commencement of open pit mining at the Marda gold project at Edna May.

The company coffers are well endowed with cash and gold on hand sitting at $87.7 million at the end of the Quarter.

A touch lower than the September 2019 Qtr levels of $92.8 million, but the company has spent on planned capital investments into the ongoing development, including $5.4 million on exploration and $24.1 million in project development costs, comprising, $7.7 million on Shannon and Hill 60 (Mt Magnet) undergrounds, $5.2 million on the Stellar open pit (Mt Magnet), $2.6 million on Edna May underground, and $8.6 million on Marda pre-development work.

“The operations team continues to deliver consistent results, with production Guidance achieved once again whilst investing in new projects and exploration,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

“We have maintained a strong cash balance throughout the first half of the year and will look to grow this strongly in the second half.

“Commencement of mining at Marda is a significant milestone for the company and we also look forward to development of the Greenfinch and Tampia projects in due course.

“We have had excellent exploration results at Eridanus, with significant resource growth and look forward to further exploration success at a number of our projects early in 2020.

“Drilling has already recommenced at Tampia South, Symes’ Find (southern extension) and Eridanus (deep diamond drilling).”

 

Email: ramelius@ramelius.com.au

Web: www.ramelius.com.au

 

THE DAILY ROADHOUSE

Lithium Australia Implementing a Drive Towards Battery Energy Sustainability

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has openly declared that its corporate intentions include shoring up an ethical and sustainable supply of energy metals to the battery industry, thus enhancing energy security in the process.

Ramelius Resources Reports Further High-Grades from Symes’ Find

THE DRILL SERGEANT: Ramelius Resources (ASX: RMS) announced results from recent drilling undertaken at Symes’ Find deposit at the company’s Hampton project in Western Australia.

Breaker Resources Identifies New Gold Anomaly

THE DRILL SERGEANT: Breaker Resources (ASX: BRB) has identified a large new gold anomaly, which it claims to highlight the exploration upside at the company’s Lake Roe gold project, east of Kalgoorlie in Western Australia.

Comet Resources Scores Further High Grade Drilling Results

THE DRILL SERGEANT: Comet Resources (ASX: CRL) announced further results from recent diamond drilling conducted at the company’s Springdale graphite project near Hopetoun in southern West Australia.

Black Cat Syndicate Back Out Drilling at Bulong

THE DRILL SERGEANT: Black Cat Syndicate (ASX: BC8) informed the market it has resumed RC drilling has resumed at the company’s Bulong gold project in Western Australia.

 

Ramelius Resources Reports Further High-Grades from Symes’ Find

THE DRILL SERGEANT: Ramelius Resources (ASX: RMS) announced results from recent drilling undertaken at Symes’ Find deposit at the company’s Hampton project in Western Australia.

Ramelius Resources said surface laterite gold mineralisation plus shallow oxide and bedrock gold mineralisation has been returned from step-out drilling beyond the previously reported 34,000 ounces Indicated and Inferred Mineral Resource at Symes’ Find.

Infill and step-out shallow oxide RC drill results from the recent drilling include:

11 metres at 4.38 grams per tonne gold from 2m, including 1m at 18.6g/t gold;

9m at 12.72g/t gold from 12m, including 1m at 99g/t gold

6m at 10.67g/t gold from 29m, including 3m at 19.58g/t gold

6m at 9.32g/t gold from 40m, including 2m at 23.8g/t gold

12m at 2.4g/t gold from 11m, including 1m at 10.4g/t gold

Deeper infill RC drill results confirmed continuity of mineralisation down dip within the fresh rock at Symes’ Find, including:

9m at 3.07g/t gold from 79m, including 1m at 8.19g/t gold

12m at 3.38g/t gold from 49m, including 1m at 9.45g/t gold

Further step-out surface laterite drill results also returned from Symes’ Find, included:

12m at 2.7g/t gold from surface

6m at 4.06g/t gold from 1m

5m at 2.61g/t gold from surface

Symes’ Find is located 120 kilometres southeast from the Edna May gold mine.

Ramelius indicated that drill access has recently been limited due to the winter grain cropping season, but where access was permissible the mineralisation shows good strike continuity to the south, into the larger Mt Hampton project.

Further strike extension step-out drilling is scheduled to commence once the winter grain crops have been harvested around mid-December this year.

“The latest Symes’ Find drilling results are further testament to the potential of the Edna May region to deliver future resources and reserves for the company and highlight the significance of Ramelius’ decision to consolidate a dominant land package extending over 130 kilometre strike through prospective stratigraphy around the Edna May gold mine,” Ramelius Resources managing director Mark Zeptner said in the companny’s announcement to the Australian Securities Exchange.

“We will continue to systematically explore the highly prospective Westonia/Holleton and Tampia greenstone belts to consolidate Edna May as a significant long-term production centre for the company.”

 

Email: ramelius@rameliusresources.com.au

Web: www.rameliusresources.com.au

 

Ramelius Resources Completes Marda Acquisition

THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) finalised the acquisition of the Marda gold project in Western Australia.

Ramelius Resources explained the completion of the acquisition came after the receipt of Federal Court approval to transfer the shares of Black Oak Minerals Limited to Ramelius on 31 January 2019.

Ramelius subsequently paid the final consideration of $11 million, marking completion of the transaction.

The Marda gold project is located 191 kilometres north-northeast of Ramelius’ Edna May operations.

The company considers it to represent a shear-controlled gold system within trucking distance of Edna May.

Ramelius indicated that work on development studies will now be finalised, with results to date demonstrating that utilising Marda as a satellite ore source to supply high-grade feed will extend mine life and maximise the value of existing infrastructure at Edna May.

“The successful acquisition of the Marda gold project secures additional high-grade ore within trucking distance of the Edna May processing facility, reinforcing Ramelius’ commitment to growth, and well and truly establishing Edna May as a new production hub,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

 

Email: ramelius@rameliusresources.com.au

Website: www.rameliusresources.com.au

 

Ramelius Resources Surpasses December Gold Production Guidance

THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) announced it has exceeded the guidance range and produced record gold production at the company’s operations in Western Australia.

Ramelius Resources declared gold production of 58,012 ounces (Guidance: 51-55,000 ounces) in the December 2017 quarter.

The breakdown of contributions came from:

Mt Magnet 23,352 ounces;

Vivien 13,283 ounces; and

Edna May’s first contribution to the Group of 21,377 ounces.

“I am delighted to provide this update showing that Ramelius has attained our targeted annualised production rate of over 200,000 ounces,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

“This record quarter exceeded guidance due to the hard work and focus by our operations teams across our three sites, including the newly acquired Edna May gold mine.

“I look forward to continuing this positive trend and solidifying our position as a growing mid-tier gold producer.”

 

 

Email: info@rameliusresources.com.au

 

Website: www.rameliusresources.com.au