them off with pride and a driven belief in the company’s sound
prospects: strong cash in bank levels, an ability to finance
current projects from existing cash, no debt, multiple production
sites, output pushing towards in excess of 107,000 ounces a
year, a firm handle on costs of production, and a pipeline of
both open-pit and potential underground gold mines coming
through to supplement existing operations.
While Ramelius continues to have exploration targets
in Queensland, Mr Gordon says it is in Western Australia
(
and particularly the Murchison region) that commands the
company’s primary focus at present.
Coming off a 60% growth in revenue to $135 million for
FY2013, Ramelius spent the opening half of FY2014 setting in
place a raft of development plans to ensure the company has a
strong production profile over the 2014 calendar year.
At the Mt Magnet gold project, Ramelius is considering a
range of expansion options after favourable drilling and mining
studies pointed towards development of the St George and
Water Tank Hill prospects.
“
We have also cut back the main Galaxy pit at Mt Magnet
to boost production, improve graded and recovered gold levels,
prioritised high-grade ore mining at Mt Magnet’s Saturn pit and
commenced maiden mining of the Western Queen South open
pit, a satellite ore body to the north-west of Mt Magnet.”
Deeper resources below the Saturn pit are being targeted for
a potential bulk, low-grade underground mining operation.
Extracting new value from Mt Magnet’s Perseverance,
Golden Stream, Brown Hill, Boomer, O’Meara and Morning
Star deposits is also on the agenda. The deposits are seen as
contributors to taking Mt Magnet’s current life of mine plan
beyond four years.
“
Adding to that, we have commenced mining at the
previously unmined Coogee deposit,” Mr Gordon said. “So we
have in every sense, a full plate!”
Coogee is a new mine in the Ramelius stable. Located
25
kilometres north-east of Kambalda, Coogee is expected to
contribute 17,500 ounces of gold to the company’s 2013-14
total production profile. Its ore will be processed at Ramelius’
Burbanks mill – a processing plant where Mr Gordon and his
team have achieved gold recovery rates in excess of 90%.
Adding to the mix is Ramelius’ new $10 million Vivien gold
acquisition, north-east of Mt Magnet, purchased from Gold
Fields under terms settled in September 2013. Vivien is a high-
grade 154,000 ounce deposit. With the ink barely dry, Ramelius
was on the ground immediately with drill rigs rolling in.
Mr Gordon believes one of the company’s real strengths
is its strong cash position. He points to the value of such a
“
cushion” after a year or two where many cash-strapped junior
explorers and miners struggled to get access to disinterested,
unsympathetic capital markets.
“
We are in a good position to just get on with our full
schedule of brownfields and greenfields exploration. This
base groundwork ensures that either through discovery or
development of known resources, Ramelius can maintain a gold
inventory for continuous milling and product sale – in a timely
manner to ensure maximum price.”
Mr Gordon illustrates the company’s future by showcasing
its past track record.
“
We have returned more cash to our investors since 2007
than any other company, bar one in our peer group, and we are
already prepared to entertain the prospect of further dividends
in 2014 – now that’s a golden future!”
Mt Magnet gold mill operator,
Miodrag Stojanovic
As one of the world’s largest uranium producers,
it is our goal to bring the multiple benefits of safe,
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We are committed to health, safety, the
environment and to making a positive difference to
the communities in which we operate.
Making a
difference
Christine Cass-Ryall leaning on
cat trucks at Mt Magnet mine