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WATTLE DAM GOLD PROJECT

 

The Wattle Dam Gold Mine is located approximately 25 km southwest of Kambalda in Western Australia. The project is held 100% by Ramelius Resources Limited and commenced mining operations in March 2006. Underground development at Wattle Dam commenced in May 2009, with the commencement of the portal and decline.

Development and mining continued during the June quarter at Ramelius’ wholly-owned Wattle Dam underground gold mine. In May 2010, the decline was completed to the base of the current mine plan and halted at the 130RL. A diamond drill site was developed at the 137RL.

Mining for the quarter increased significantly, with a record production month of 20,430t, being reported for June 2010. No significant interruptions to the mining schedule occurred and production is currently progressing ahead of plan. Production claimed for the full June 2010 quarter was 49,903t compared to 28,358t for the March 2010 quarter.

 

Ore development focused on the lower B block footwall ore drives (145 & 165) and upper A block hangingwall ore drives (225 & 241). Stoping was completed for the Block A footwall stopes in April and recommenced for the Block A hangingwall stopes in June 2010. Stoping of the 205-225 hangingwall panels adjacent to the previously mined and backfilled footwall panels occurred for the first time during June. The CRF (cement rock fill) remained in place during mining of the hangingwall panels. Stope mining at Wattle Dam has now been refined with fast cycle times, optimised drill and blast methods and minimal ore loss. Mine production for the quarter was almost 50,000 tonnes of ore at an estimated grade of 18 g/t.

 

Total milled gold production since underground milling commenced late in November 2009 now totals over 60,000 ounces of gold, just 8,000 ounces less than the original mine plan.

Table 1: Quarterly Production and Financial Information

Quarter	December 2009	March 2010	June 2010
Gold Production Oz (milled)	20,832	15,665	24,133
Total Cash Cost A$ per Oz *	A$403	A$616	A$464
Gold Sales A$M	A$19.8	A$13.2	A$24.4
Cash and Gold (at Qtr End)	A$25m	A$75m	A$94.3

 *Reconciled cost which includes all capital, mining, milling and royalty costs

 

 

 Figure 1: Wattle Dam Underground Mine

 

Geology

The Wattle Dam gold deposit is hosted in sheared and metamorphosed mafic to ultramafic rocks. The deposit contains two main lodes, the West Zone and the East Zone, with the bulk of the gold mineralisation contained in the East Zone, a high grade plunging shoot.

Mining

There have been two phases of open cut mining at Wattle Dam in 2006 and 2008-9. Underground mining commenced in May 2009. To date the project has produced in excess of 100,000 oz of gold.  

Milling

Ramelius Resources wholly owns Burbanks treatment plant, which is capable of treating up 200,000 tonnes per annum of Wattle Dam ore.  

Resource Definition

Resource definition drilling programs are ongoing, with both surface and underground diamond rigs operating at Wattle Dam. A program of deep diamond drilling to test depth extensions at Wattle Dam commenced in June 2010.