Ramelius acquires Kathleen Valley gold project

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Image credit: freedigitalphotos By: Boykung

Australian gold producer Ramelius Resources Limited has announced that it has signed an agreement with Xstrata Nickel Australasia Operations (XNAO) — a subsidiary of Glencore plc — and Giralia Resources to acquire 100% of the XNAO Kathleen Valley tenements and 100% of the tenements held by XNAO and Giralia as the participants in the Kathleen Valley and Mount Harris Joint Ventures.

Image credit: freedigitalphotos By: Boykung
Image credit: freedigitalphotos By: Boykung

According to the ASX announcement by the company, the Kathleen Valley tenements are located 50km north of Leinster in Western Australia and contain 130,000 ounces of gold in three deposits — Mossbecker, Yellow Aster and Nils Desperandum.

As part of the deal, Ramelius will pay XNAO A$3.645 million cash for 100% of its Kathleen Valley tenements and further A$405,000 to acquire 100% of the adjacent Kathleen Valley Joint Venture and Mt Harris Joint Venture.

“The acquisition of the Kathleen Valley Gold Project will add significantly to Ramelius’ recent acquisition of the Vivien Gold Project, enable cost reduction synergies across both projects and significantly build on the Company’s strategy to create a high yielding, positive cash flow mining business centred on its established Mt Magnet Milling Operations,” said Ian Gordon, Managing Director at Ramelius Resources.

According to the article on ProActiveInvestors, Ramelius intends to complete further resource definition drilling within the next six months to upgrade the resources to Indicated, for use in future mine planning studies.

Adertisement

Scoping studies undertaken on behalf of Xstrata indicate the potential for high grade open pit developments with low capital costs.

Ramelius’ acquisition of Xstrata’s Kathleen Valley tenements trail follows the recent purchase of the Vivien Project from Agnew Gold Mining Company, a subsidiary of Gold Fields Limited, for $10 million.

The Vivien gold project is a high grade vein style deposit and carries current Indicated Mineral Resource of 579,000 tonnes at 8.3 grams per tonne for 154,000 ounces of gold.