Ramelius (ASX:RMS) announced that it will now have a third million-ounce mine project at its Mt Magnet area of interest in WA’s midwestern goldfields.
In an update filed with the ASX on Monday, the company stated that the Eridanus prospect "is set to become the third +1Moz mine in the Mt Magnet field, after Hill 50 & Morning Star."
Ramelius further explained that additional drilling and analysis had resulted in a 64% increase in the updated mineral resource estimate for the Eridanus prospect, including the adjacent Lone Pine and Theakston deposits.
The new estimate indicates 21 million tonnes of ore at 1.7 grams of gold per tonne, totaling an estimated content of 1.2 million ounces. The company combined the previous Mineral Resource Estimate of 730,000oz and the Exploration Target of 125,000 to 225,000 ounces into a single resource. The result significantly exceeded the upper end of the Exploration Target range and contained over 75% in either the Measured or Indicated categories.
"The updated mineral resource includes high-grade zones, with exploration drilling highlights at Eridanus reported for the March 2024 Quarter, including: 14 metres at 6.26 grams per tonne from 113 metres, 20 metres at 14.51 grams per tonne from 65 metres, and 15 metres at 4.90 grams per tonne from 30 metres."
Ramelius stated that the "increased Mineral Resource is positive for both open-pit and underground options, which remain available beyond the current open pit, expected to produce around 300,000 ounces once completed and all stockpiles processed."
A 10,000-metre drill program is planned to commence in June 2024, including 3,300 metres of diamond drilling, designed to infill and extend mineral resources on the flanks of the current open pit to allow informed analysis of both mining options.
CEO Mark Zeptner remarked in Monday’s release that “In keeping with the previously released Mt Magnet 10-Year Plan, the Eridanus project is expected to figure prominently in one form or another for the entirety of the mine plan.”
He added that the significant resource upgrade, both in terms of tonnes and grade, bodes well for a mine life well beyond 10 years, especially if an open-pit option is ultimately chosen.
“Given the 64% increase is net of depletion and the current open pit will produce over 300,000 ounces once processed, Eridanus is set to become the third +1Moz mine in the Mt Magnet field, after Hill 50 & Morning Star."
"Further drilling has the potential to increase resources again, and this will commence shortly, leading into underground/open-pit mining studies in the second half of the calendar year.”
The Eridanus open pit is located 6.5 kilometres west of Mt Magnet and 7.8 kilometres by haul road to Ramelius’ Checkers Mill.
The Eridanus deposit was discovered by Ramelius in late 2017, and mining of the Stage 1 pit commenced in mid-2019. With ongoing drilling and resource growth, it was decided to mine a larger 230-metre-deep pit, and the Stage 2 pit commenced in June 2020.
Ramelius stated that the current pit design will be mined to a depth of 235 metres below the surface and is scheduled to be completed in July 2024.
