Ramelius Resources Limited (ASX:RMS) has unveiled a more cost-effective Tampia Feasibility Study and an updated Ore Reserve for the Eridanus open pit (Mt Magnet), two important milestones in the development of its portfolio of Western Australian assets.
The new Tampia Feasibility Study, which focused on the option to haul ore to Ramelius’ Edna May processing facility, has delivered a simplified processing solution for the project, resulting in a significant reduction in capital cost (~A$24M) and a commensurate reduction in operating costs associated with processing.
In turn, this has improved the estimated financial returns for the project, as compared to the Strategic Review carried out in May 2019.
The Tampia deposit is located 12km south-east of Narembeen and 100km south of the Edna May gold mine, in the Wheatbelt region of WA. The deposit was discovered in the 1980s by BHP. Ramelius acquired the project via the takeover of Explaurum Limited in early 2019.
Ramelius reported negotiations are continuing with both the landowner and with the 10% minority owner to resolve incomplete arrangements made with the previous tenement holders.
The company said the negotiations may see the projected start date for Tampia pushed back from mid-2020 to the start of 2021 calendar year.
However, Ramelius added that it is not expected that this will result in lower production for FY2021 due to other favourable developments, such as the upgrade at Eridanus.
The Eridanus open pit (Stage 1), which has been mined to a depth of approximately 40 metres, will move to a Stage 2 cut-back whilst ore mining continues in Stage 1. At the point in time that the Stage 2 cutback “catches up” with the Stage 1 mining, the pit will be then progressed as a single pit to its design depth of approximately 235m. The potential for further open pit or underground mining beyond that point is currently the subject of a Scoping Study.
https://www.rameliusresources.com.au/
