Unexpected gold rush

Ramelius Resources has announced that the levels of gold discovered at its Wattle Dam mine have exceeded both the quality and quantity of what they had previously thought.

Ramelius Resources has announced that levels of gold discovered at its Wattle Dam mine have exceeded both the quality and quantity of what they had previously thought.

The company said that while 85% of the pit cutback has been completed, drilling has revealed high grade gold zones remain in the final 25 metres of the pit floor, which is yet to be removed.

“The ore tonnes and grades from the pit cutback have already exceeded original estimates,” Ramelius managing director Joe Houldsworth said.

“The milling of these tonnages, planned for the current March quarter, has the potential to result in significant cash enhancements from Wattle Dam’s final open pit offerings.”

Gold has recently reached its highest ever prices, at close to $1500 per ounce.

According to Houldsworth, even without the new discovery, initial assessment levels for the operation have been met.

“The total ore mined from the cutback to the end of December last year, is estimated to contain nearly 6,400 ounces of gold,” he said.

“That is equivalent to the original estimated production for the whole of the pit cut back operation, and we still have a further 25 metres of pit to mine.”

Ramelius also announced that they had produced 2,456 ounces of gold during the December 2008 quarter from Wattle Dam, with the sale of 2,248 ounces generating US$2.7 million.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.