Ramelius Resources Limited (ASX: “RMS”) is pleased to advise it has produced the 100,000th ounce of gold from its underground Wattle Dam gold mine, 25 kms west of Kambalda in Western Australia, bringing to 150,000 ounces, the total gold output from the mine’s former open pit and current underground operations.
This achievement represents a significant milestone for the Company with the 100,000 ounces produced since the commencement of underground operations at Wattle Dam in late 2009.. Average mined grade for the underground operations to date has been in excess of 20 grams per tonne (g/t) Au with total costs of production at less than
AUD$500/oz.

This result has cemented Ramelius as the highest grade and one of the lowest cost gold producers in Australia.
Ramelius’ Managing Director, Mr Ian Gordon, said: “This strong production performance at a time of record gold prices has vindicated our faith in the Wattle Dam orebody to deliver shareholders a consistent, profitable mining operation. Our original underground mine plan only anticipated production of 68,000 ounces, a figure which has been easily surpassed with grade overcall and significant exploration success at depth, including a new high grade zone discovery.”

Wattle Dam production will continue as Ramelius moves to commence its maiden production next year at the 100% owned, multi‐million ounce Mt Magnet gold project under the Company’s growth strategy to produce 200,000 ounces of gold by 2013/2014.

For further information please contact:
Ian Gordon
Managing Director
Ph: 61 8 9202 1127

Wattle Dam underground gold mine specimen

As previously mentioned in this blog Focus Minerals Limited (Focus) operates gold mines in the famous historical gold district of Coolgardie in WA where the company has built up the largest ground holding and embarked on a program of renewal and expansion with a large upgrade to output due in 2011.

Ord Minnett: “The company’s shares are currently trading at a 38% discount to OML’s base case valuation of Focus and at a 122% discount to OML’s upside valuation. In OML’s opinion this is mainly due to the market’s residual concerns over the quality of Focus’ asset base and the company’s ability to consistently achieve the planned gold production and operating costs for its Coolgardie operations and to be able to successfully unlock substantial value from its large gold resource base.” Read the Ord Minnett Report

Having amalgamated most of the Coolgardie gold district and having completed the refurbishment of its treatment plant FML is headed for a marked increase in gold production up from 62,000 ozs in 2010 to over 100,000 ozs in 2011.