Adelaide, Mar 31, 2006 AEST (ABN Newswire) - Ramelius Resources Limited (ASX: RMS) has today unveiled what the Company describes as "the most intensive" exploration program yet for its Spargoville gold and nickel tenements in Western Australia - home to the Company's 100% owned Wattle Dam Gold mine.
The 2006 broader Spargoville exploration program announced by Ramelius today includes 24,000 metres of RAB drilling, 2,400 metres of aircore drilling, 1,000 metres of diamond drilling and some 3,000 auger samples.
"Directors are confident that potential exists on these priority targets for a major gold deposit in addition to further shallow high-grade gold deposits similar to Wattle Dam," Ramelius Managing Director, Mr Joe Houldsworth said.
"We have identified more than 20 priority targets along more than 30 kilometres of strike length within this belt and on trend with recent discoveries of gold and nickel," Mr Houldsworth said.
"The high prospectivity of the Hilditch nickel project will be a particular early focus and potential exists within the priority targets for a major gold deposit in addition to further shallow high-grade gold deposits similar to Wattle Dam.
"The Wattle Dam Gold Mine has estimated gross revenue of up to A$10m based on a gold price of A$750 per ounce."
Located 25 kilometres west of Kambalda in the eastern goldfields of Western Australia, ore from Wattle Dam will be campaigned in 30,000 tonne parcels in Coolgardie at the Greenfield's Gold Treatment Plant.
The deposit contains a resource of 180,000t @ 3.6 g/t gold of which 120,000t @ 4.0 g/t gold is classified as Indicated and 60,000t @ 2.9 g/t gold as Inferred.
Mining of the ore body commenced this week after completion of pre-stripping. The mine is expected to produce around 13,500 ounces of gold over the next 5 months.
Share Purchase Plan announced
Ramelius also today announced a share purchase plan (SPP).
The proceeds of the SPP will bridge the gap between the commencement of the Company's newly announced exploration program and cash flow from the Wattle Dam gold mine as well as providing additional working capital.
"The SPP, the first since Ramelius listed on the ASX in 2003, will allow shareholders to participate in the growth of the Company as Wattle Dam, our first gold mine, increasingly comes into production," Mr Houldsworth said.
Terms of the SPP
Ramelius said eligible shareholders would be offered up to a total of $5,000 Share Purchase Plan (SPP) shares at 11.5 cents per share.
This represents a 1.3 cents or 10.16% discount per share from Ramelius' average closing market price traded on the ASX over the past five business days.
The offer is for up to 20.8 million shares which if fully taken up, would take the total number of Ramelius ordinary shares on issue to 90.4 million.
Eligible shareholders must be registered by 13 April 2006 with the non renounceable SPP offer opening on 21 April 2006.
Mr Houldsworth said the Directors of Ramelius intended to subscribe for shares under the SPP in respect of their own shareholding.
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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