Ramelius Resources Share Price up after Drilling Reveals More Gold
The $1.26 billion market cap gold producer, Ramelius Resources Ltd [ASX:RMS] saw its share price rise 3.77%, or six cents this morning and is currently trading at $1.65 per share.
Drilling results from its Penny, Mount Magnet, and Enda May projects announced this morning indicated that there might be plenty more gold to be found in the Yilgarn Craton.
Accounting for a significant portion of WA’s landmass, the Yilgarn Craton hosts major mining operations like Northern Star Resources Ltd’s [ASX:NST] and Saracen Mineral Holdings Ltd’s [ASX:SAR] 800,000oz-per-annum Super Pit in Kalgoorlie.
Source: Lefroy Exploration
The area is also becoming home to a new influx of small-cap miners eager to become WA’s next historic, high-grade success story.
More gold to be found
RMS announced new drilling results at some of its largest gold mining projects.
Their Penny project, which they acquired from Spectrum Metals Ltd [ASX:SPX] via a takeover earlier this year has continued to live up to its hype.
Source: Ramelius Resources
Infill and diamond core drilling have turned up solid results at the Penny West pit including four metres at 18.06 grams of gold per tonne (g/t) from 216m and three metres at 18.42 g/t Au from 184m.
Their Magenta site, located 1.8km north and along strike of the Penny West pit, also showed promising results.
The results included 10m at 2.12 g/t from the surface, three metres at 5.49 g/t from four metres, and three metres at 7.63 g/t from 17m.
Ramelius said these results will integrated into the Penny Pre-Feasibility Study and that the drill results are in line with expectations.
Northeast of Penny, the Eridanus Granodiorite located at Mt Magnet has returned high-grade gold mineralisation below the stage 2 of the open pit design.
Source: Ramelius Resources
Due to the thickness of the mineralisation, Ramelius initiated an underground scoping study with the aim of monetising the deposit below the planned open pit.
The historic Edna May gold mine, originally owned by Evolution Mining Ltd [ASX:EVN] also appears to be turning up new resources.
Having produced over 500,000oz of gold produced since 2011, Edna May could be set for an eventual resource upgrade with reconnaissance drilling revealing an encouraging new discovery.
Ramelius Managing Director, Mark Zeptner had this to say about their results:
‘The latest exploration drilling results at Penny are further testament to the Project’s potential to deliver additional resources and reserves for the Company.
‘Beyond Penny, we are buoyed by new drill results at Mount Magnet and along the Westonia/Holleton and Tampia greenstone belts. These should aid in further consolidating Mount Magnet and Edna May as significant long-term production centres for the Company.’
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For The Daily Reckoning Australia