A new study has confirmed Ramelius Resources’ (ASX:RMS) ability to produce in excess of 1.4Moz gold over a six year mine life from its portfolio of assets in Western Australia.
The Life Of Mine Plan (LOMP) has estimated Ramelius could produce at an average AISC of A$1,250 – A$1,350/oz , with the potential to deliver further resource extensions from current operations, whilst retaining the ability to also grow through acquisition.
Managing Director, Mark Zeptner, said Ramelius has also incorporated the results of the PFS for the company’s newly acquired Penny Gold Project south-east of Mt Magnet in WA. The study has demonstrated exceptional grade and margins that promise to return significant cashflows to the company from late FY2022.
The LOMP outlines annual production targets and the relative contributions to group gold production from the Mt Magnet and Edna May production centres, with the Penny Gold Project highlighted as part of the Mt Magnet profile.
Building on last year’s landmark result of over 1Moz contained within a detailed mine plan, the forward outlook of almost 1.5Moz following a record production year in FY20, is a very pleasing result for Ramelius,” Mr Zeptner said.
“It is a further testament to the work done by all our team that we can articulate a longer term plan with production scale, strong margins and an achievable approach to reserve replacement that gives us confidence that this visibility around mine life can be extended going forward.”
The new LOMP is based predominantly on Ore Reserves with a small contribution from Mineral Resources that, in the view of Ramelius, are likely to be converted to Ore Reserves in the future.
The key drivers of this positive change revolve around the expanded mining operations at the Eridanus open pit as well as the early results of a preliminary scoping study into a bulk mining operation beneath the base of the planned Eridanus pit. The contribution from the recently acquired Penny Gold Project has added significant, low cost ounces to the LOMP.
Mt Magnet Processing
The milling profile for Mt Magnet over the life of mine plan sees a continued mix of base load, large tonnage open pit ore sources of Eridanus and Morning Star and high grade underground mines such as Vivien, Hill 60, Shannon and the Penny Gold Project. Detailed scheduling has been completed to ensure a balance between high and low grade feed sources as well as oxide, transitional and fresh material to ensure optimal milling rates. The processing plant runs consistently at a rate of 1.9–2.0Mtpa.
Edna May Processing
The throughput rate at Edna May is expected to reduce from its current 2.7Mtpa nameplate capacity to a 2.1Mtpa rate to accommodate the need for a finer grind (125um) for the Tampia ore, which will become the base load ore feed from the start of FY2022. The reduction in throughput will be more than offset by a significant increase in average grade through the mill. The historical 1.0–1.2g/t Edna May open cut material will be replaced by higher grade Marda (2.0 g/t) and Tampia (2.5 g/t) material.