Monday, 20th March 2006 (2860 views)

Ramelius Resources Ltd is to commence open-pit mining at its Wattle Dam 7800N gold deposit in western Australia.

The news marks the change in status of Ramelius from an explorer to a miner, with around 13,500 ounces to be produced by August.

Revenue from the production is expected to reach $10 million based on current estimates of gold value at around $750 per ounce.

Ramelius' managing director, Joe Houldsoworth, commented: "This is a milestone for the company as many gold explorers, particularly at the junior scale, never evolve to an actual mining operation.

He added: "We are highly confident in the further potential of our tenements around Wattle Dam, reinforced by the relative rapidity to which we have explored, drilled out and now brought into operation, Australia’s newest gold mine."

The mine will be found 25 kilometres to the west of Kambalda, with ore from the mine used at the Greenfield's Gold Treatment Plant.

The deposit has been classified as Indicated, containing a resource of 180,000 tonnes with 3.6 grams of gold per tonne.

 

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