RAMELIUS RESOURCES LIMITED - ASX: RMS

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Description

Ramelius is a Western Australian focussed gold producer with mining operations at Wattle Dam near Kambalda and milling facilities at Burbanks near Coolgardie.

Ramelius is committed to providing superior returns to its shareholders by focussing its activities on high return assets in established mineral provinces and by pursuing exploration as its main growth strategy.

The Company's primary project is the Wattle Dam gold mine, which has produced in excess of 150,000 ounces of gold since 2006. It is the highest grade gold mine in Australia and has a low cost of production of less than A$500 per ounce of gold. It is currently being mined as an underground operation and drilling to extend the mine life is continuing.

Ramelius purchased the Mt Magnet gold project located 600km north east of Perth in July 2010 and intends to bring this project into production in 2011. A recent drilling program has identified a number of high grade gold targets for follow-up in 2011.

8500N PROJECT

The 8500N Prospect is located approximately 600 metres to the north of the Wattle Dam Gold Mine. The prospect is defined by an 800 metre long, >50ppb gold soil anomaly which trends north-northwest. The geology of the area comprises north-northwest trending felsic lithologies in contact with ultramafic units to the east and west. RC drilling of the soil anomaly earlier this year intersected gold mineralisation associated with supergene and weak chlorite alteration and minor sulphides at the eastern felsic/ultramafic contact. A follow-up drilling program is underway to evaluate both the supergene and contact related mineralisation.

Black Cat Project

The Black Cat Project is located 35 kilometres northwest of Coolgardie. Previous exploration by Ramelius has concentrated on resource drilling around the Black Cat deposit and regional auger drilling.

Burbanks Treatment Plant

The Burbanks Treatment Plant is located 8 km south of the town of Coolgardie and 65 km from the Wattle Dam Gold Mine. The plant was purchased in November 2006 for $2.8 million and the Company has expended a further $1.3 million on refurbishing activities. The mill is a conventional CIL circuit and commenced treatment of Wattle Dam ore in May 2007.The mill has a capacity to treat up to 180,000 tonnes of material per annum.

Eagles Nest Project

The Eagles Nest Project is located approximately seven kilometres to the south and along strike from the Wattle Dam Gold Mine. The lease was the site of the discovery in 1931 of “The Golden Eagle Nugget” which weighed in at 78 pounds or 1,131 troy ounces, the largest recorded nugget found in WA. Since this time the tenement area has been held continuously by individual miners and prospectors and consequently has had little if any systematic exploration. The Company believes the “Golden Eagle” and numerous other nuggets located at this area to be a significant indicator of remaining prospectivity within the project area. RC drilling identified a mineralised (>1.0g/t gold) trend which remains open to the south. A drill program is currently underway which will test for southern extensions of identified mineralisation.

Glen Isla Joint Venture (NSW)

During the quarter Ramelius’ joint venture partner Carpentaria Exploration Limited completed a detailed 3-D induced polarization (IP) survey over the Glen Isla epithermal target area and identified a shallow (from 100m below surface) anomalous chargeable response. RC drilling of the chargeable anomaly is scheduled during the September 2010 quarter.

Golden Orb Project

This prospect is located approximately 700 metres to the south and along strike from the Wattle Dam Gold Mine. RC and diamond drilling has identified several >1g/t gold mineralised trends and further exploration is planned.

Larkinville West

The Larkinville West project is located 5km south west of the Wattle Dam Gold Mine. The area was initially defined by a zone of co-incident gold and arsenic anomalism within auger sampling. Follow-up by RAB and RC drilling has identified a zone of gold mineralisation.

Mt Magnet Gold NL

In July 2010, Ramelius purchased the Mt Magnet gold project for A$40 million from Harmony Gold (Australia) Pty Ltd. The Mt Magnet project has previously produced in excess of 5M ounces of gold and has significant potential for new discoveries. Ramelius’ strategy over the next 12 months will be to confirm the the feasibility work completed by Harmony, to review all capital and operating costs, and to add value to the project by drilling the numerous high grade targets identified in the immediate vicinity of the Galaxy area.

Mt Windsor Gold Project (QLD)

Ramelius Resources Limited has entered a joint venture with Liontown Resources Limited in regards to its Mt Windsor Gold Project, located south of Charters Towers in Queensland. Ramelius can earn a 60% equity in the project by spending $7 million over four years. A minimum expenditure of $1.25M is required prior to July 2011.

BIG BLUE JOINT VENTURE (USA)

During the quarter Ramelius’ joint venture partner, Miranda Gold Corp completed 100x50m infill soil sampling, geological mapping and a detailed gravity survey over the West Cottonwood prospect area, where a coincident plus 9ppb gold in soil anomaly and anomalous rock chips up to 56g/t Au have been identified to date. An aggregate 1,237 soil samples were collected. Assay results are awaited. A preliminary image of the 200x100m survey station gravity survey is shown as Figure 1. This highlights a gravity high feature within the centre of the project area, suggesting uplifted basement or buried intrusive rocks. An interpretation of the results will be available at the end of July 2010.

ANGEL WING JOINT VENTURE (USA)

A drilling program at Angel Wing in Nevada during the quarter was designed to scope coincident chargeable and resistive IP anomalies sitting below surface channel samples across the DaVinci Vein. The channel sampling returned 3m @ 25.2 g/t Au and 89.2 g/t Ag. The drilling intersections in AW10-03 are separated by cavities and extend over 15.2m downhole to the end of hole. The hole was abandoned at 47m in mineralisation after losing the drill hammer. The results remain open down dip and along strike. A detailed IP survey over the available 2km strike of the low sulphidation epithermal vein field at Angel Wing will be completed during the 2011 field season ahead of additional drilling.

Spargoville Nickel

The Wattle Dam tenements host the Spargoville ultramafic belts which are known to contain nickel deposits including the 1A, Andrews, 5A and 5B nickel mines. Ramelius is currently assessing all available information to identify priority targets for further exploration.

WATTLE DAM GOLD PROJECT

The Wattle Dam Gold Mine is located approximately 25 km southwest of Kambalda in Western Australia. The project is held 100% by Ramelius Resources Limited and commenced mining operations in March 2006. Underground development at Wattle Dam commenced in May 2009, with the commencement of the portal and decline.

Development and mining continued during the June quarter at Ramelius’ wholly-owned Wattle Dam underground gold mine. In May 2010, the decline was completed to the base of the current mine plan and halted at the 130RL. A diamond drill site was developed at the 137RL.

Mining for the quarter increased significantly, with a record production month of 20,430t, being reported for June 2010. No significant interruptions to the mining schedule occurred and production is currently progressing ahead of plan. Production claimed for the full June 2010 quarter was 49,903t compared to 28,358t for the March 2010 quarter.

Ore development focused on the lower B block footwall ore drives (145 & 165) and upper A block hangingwall ore drives (225 & 241). Stoping was completed for the Block A footwall stopes in April and recommenced for the Block A hangingwall stopes in June 2010. Stoping of the 205-225 hangingwall panels adjacent to the previously mined and backfilled footwall panels occurred for the first time during June. The CRF (cement rock fill) remained in place during mining of the hangingwall panels. Stope mining at Wattle Dam has now been refined with fast cycle times, optimised drill and blast methods and minimal ore loss. Mine production for the quarter was almost 50,000 tonnes of ore at an estimated grade of 18 g/t.

Total milled gold production since underground milling commenced late in November 2009 now totals over 60,000 ounces of gold, just 8,000 ounces less than the original mine plan.

Mine For

gold, nickel, antimony, copper, lead, silver, zinc

Location of operation(s)

Western Australia, Queensland, New South Wales, USA

Address

140 Greenhill Road
UNLEY, SA, AUSTRALIA

Phone

61 8 8373 6473

Email

Website

http://www.rameliusresources.com.au

Last Updated

11/5/2011