Adelaide, June 20, 2006 AEST (ABN Newswire) - Gold output three times higher than expected have been returned from a trial parcel of low grade ore processed by Ramelius Resources Limited (ASX: RMS) from its new Wattle Dam gold mine in Western Australia.
In addition, the Company has reported spectacular grades of up to 1,253 grams per tonne gold during grade control drilling on the fifth and sixth flitches - ore blocks still to be mined and stockpiled for processing - at Wattle Dam, 25 kilometres west of Kambalda.
The 5,400 tonne parcel returned 160 fine ounces of gold from the gravity circuit and 530 oz recovered via the CIL circuit for a total of 690 fine ounces (21.5 kilograms of fine gold).
"This represents a Reconciled Head Grade of 4.5 g/t gold with 89% recovery from the parcel and is three times the un-cut grade of 1.4 g/t au determined from grade control drilling for this material," Ramelius' Managing Director, Mr Joe Houldsworth, said today.
"Clearly, there is a substantial overcall in the grade of this material which was mainly derived from the upper most flitches of Wattle Dam's open pit," Mr Houldsworth said.
"A course gold component within the ore, from the upper profile of the deposit, is recognised as being responsible for the overcall.
"The spectacular grades being progressively encountered in the deeper flitches are encouraging but whether a similar overcall may apply to these ore parcels, has yet to be determined," Mr Houldsworth said.
Mining commenced at Wattle Dam in March with ore being processed through the nearby Higginsville Greenfields Plant.
The low grade material had been mined incidental to the Run of Mine Ore and had been stockpiled for use as a flushing medium to clean residual gold from the plant after the ore milling campaign scheduled for late this month.
"However, the opportunity was taken to process this material as a separate parcel and to confirm the metallurgical performance of the Wattle Dam ore ahead of the major milling campaign - with a worthwhile outcome," Mr Houldsworth said.
To the end of May, some 15,000 tonnes of ore with an estimated grade of 4.0 g/t gold (based on un-cut grades from the grade control drilling) plus the low grade parcel, had been mined from Wattle Dam's first four flitches.
This figure represents about one fifth of the total ore currently scheduled to be mined from the open pit. About 40% of scheduled total waste has also been mined.
Contact
Joe Houldsworth
Ramelius Resources Limited
TEL: +61 8 9250 6644
Kevin Skinner
Field Public Relations
TEL: +61 8 8234 9555 / 0414 822 631
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