Ramelius holds hopes for higher production

Ramelius Resources expects "significantly higher production" from its mines, following the release of strong December quarter production results yesterday.

Ramelius Resources yesterday announced it had produced 20,832 ounces of gold across all of its operations during the December quarter last year.

The company milled a total of 15,632 tonnes of high grade ore at 41 grams per tonne and 1,759 tonnes of low grade ore at four grams per tonne.

According to Ramelius, these grades were more than three times higher than expected.

“This is expected to result in significantly higher production from the current mine plan,” the company said.

The gold miner and explorer also confirmed that work continuing on its new Wattle Dam underground gold mine, located 25 kilometres west of Kambalda in Western Australia’s eastern goldfields.

The mine’s second tonne of gold was produced in December and the company believes the orebody is larger than expected.

The company also ended the quarter with $25 million cash in hand. Meanwhile, Ramelius’ bidding rival for Dioro Exploration, Avoca Resources, yesterday announced it had opened its second unconditional offer for the takeover target.

Avoca wants to secure a majority stake in Dioro, after acquiring 44.85% in the company from a previous offer in the middle of last year.

Ramelius, which at last report held a 37.01% stake in Dioro, said its offer would remain open until 8 February.

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