Sydney, Feb 17, 2006 AEST (ABN Newswire) - A A$250,000 placement of securities has been made by Ramelius Resources Limited (ASX: RMS) to help fund start-up costs for the maiden mining next month of the Company's Wattle Dam 7800N Gold project in Western Australia.
1,923,076 shares have been placed and will be issued at a price of 13 cents per ordinary share - a premium to the last closing price for Ramelius of A$0.12. In addition, one free attaching option for each two shares placed will be issued on the same terms as currently listed options. The options will be exercisable at $0.18687 by 31 December 2007.
Ramelius Chairman, Mr Bob Kennedy, said today the open-pit mining of Wattle Dam would commence late February / early March 2006 with an initial mine life of six months. "Ore will be treated at nearby Coolgardie and will generate first revenue for Ramelius," Mr Kennedy said.
"The life of the mine could be extended by deeper drilling."
"Earnings from the mine will provide funds for our ongoing and intensifying major exploration activity on our gold, nickel and base metals assets within the Spargoville Belt which is assuming increased relevance as an emerging gold and nickel province," Mr Kennedy said.
The high grade Wattle Dam deposit is located 25 kilometres west of Kambalda and hosts a resource of 180,000 tonnes at 3.6 g/t gold (cut) for an estimated 21,000 oz of gold. The resource includes the Eastern High Grade Zone of 76,000 tonnes at 5.9 g/t gold (cut) for 14,400 ounces of gold. The Company last year reported bonanza results from drilling at the Eastern Zone, including 953 g/t gold and 151 g/t gold in adjacent one metre intervals, and an additional 59 g/t gold over one metre within a continuous mineralised zone in one of the infill holes.
Other results included 587 g/t gold over one metre in a second hole, and 65 g/t gold and 35 g/t gold in adjacent one metre intervals in a third hole.
Ramelius Managing Director, Mr Joe Houldsworth said "Numerous high to very high grade intersections are an exciting feature of this deposit, raising the potential for a significant overcall in anticipated mined grade".
Contact
Joe Houldsworth
Ramelius Resources Limited
TEL: + 61 8 9250 6644
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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