Wattle Dam Gold Mine
The Wattle Dam Gold Mine is located 70km south of Kalgoorlie and approximately 25km southwest of Kambalda in the Eastern Goldfields of Western Australian. The project is 100% owned by Ramelius Resources Limited.
Open cut mining commenced in March 2006. Underground development commenced in May 2009, and the first underground ore production commenced in November 2009.
Since 2006, Wattle Dam has produced over 225,000 oz of gold and a record annual production of 100,000 oz was achieved in the 2010-2011 financial year. Annualised underground production currently stands at 65,000 oz per year with the mine life extending to December 2013 (1,300oz per vertical metre).
Gold production (milled) for the September 2011 quarter was 39,057 tonnes at a recovered grade of 12.4 g/t Au for 15,601 oz produced. Wattle Dam ore contributed 27,967 tonnes at 14.7 g/t for 13,186 oz and non-Wattle Dam sources produced 11,090 tonnes at 6.8 g/t for 2,415 oz.
Table 1: Quarterly Production and Financial Information
| Quarter | Sept 2011 | June 2011 | March 2011 | Dec 2010 |
|---|---|---|---|---|
| Gold Production Oz (milled) | 15,601 | 25,571 | 23,281 | 26,668 |
| Total Cash Cost per Oz ^ | A$489 | A$330 | A$304 | A$421 |
| Gold Sales | A$35.49m | A$30.36m | A$33.64m | A$43.92m |
| Cash and Gold (at Qtr End) | A$90m | A$99m | A$91m | A$81m |
^ Reconciled cash cost which includes all mining, milling and royalty costs (March and June Qtrs 2011 do not include capital development of $4.6m and $4.2m respectively whereas previous quarters did include capital development). Capital development has not been included as it distorts the Company’s cash cost reporting compared to peer companies. If the capital development cost is included, the total cost per oz for March and June 2011 Qtrs would be $509 and $497 respectively.
Wattle Dam Gold Mine and Burbanks Treatment Plant location plan, 600km east of Perth in Western Australia
Visible gold in diamond hole WDUD0246 at the 100mRL (240m below surface). Note: Both outer sides of the cut core shown
Geology
The Wattle Dam gold deposit is hosted by sheared and metamorphosed ultramafic rocks. Gold mineralisation is contained in two subparallel lodes; West Zone and the East Zone. Only the East Zone is being mined from underground. It is defined as a high grade (average 20 g/t Au) steep (700) northerly plunging ore shoot. Dimensions of the high grade shoot do not exceed 50m in strike and 12m in horizontal width. The ore zone is characterised by intense biotite alteration and coarse bladed recrystalised actinolite and tremolite needles. The alteration extends up to 6m either side of a thin (1m) drag folded and structurally thickened interflow shale horizon.
Mining
Final stope production from the Block B hangingwall stopes was completed in the September quarter 2011. The upper levels of the mine, Blocks A and B have now been mined out.
In April 2011, a new mine plan for Wattle dam was approved by the Ramelius Board. The new mine plan targets mining the Block D and Block C zones. Block C is expected to be lower grade than Block D, although effective grade measurements can only be achieved by milling the development ore parcels.
Decline development reached the base of Block D, 360m below surface (980mRL) in September 2011.
Milling
Wattle Dam ore is treated at Ramelius’ 100% owned Burbanks Treatment Plant, located near the Coolgardie, 60km by sealed road to the north of the mine. The Burbanks Mill can treat up to 200,000 tonnes of ore per annum.
Wattle Dam Gold Mine longitudinal section (looking east). The base of the decline is 360m below surface.
Wattle Dam Gold Mine cross section (looking north) through Blocks A and B along 8035mN.