WATTLE DAM GOLD PROJECT
The Wattle Dam Gold Mine is located approximately 25 km southwest of Kambalda in Western Australia (Figure 1). The project is held 100% by Ramelius Resources Limited and commenced mining operations in March 2006. Operations were suspended in October 2007 as the current pit limit was reached. Exploration to increase the resources at Wattle Dam and a study to establish whether further mining is economic is underway.
Wattle Dam Pit
Wattle Dam Pit
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 mineralization contained in the East Zone.
Mining
Open pit mining commenced in March 2006 and was suspended on 31 October 2006, having reached a depth of 54m. A total of 528,000 BCM were moved of which approximately 160,000 tonnes was ROM ore and 14,500 tonnes was low grade ore.
Milling
In February 2007, Ramelius Resources Limited purchased the Burbanks gold treatment facility to treat the remaining Wattle Dam ore, which is estimated at 106,000 tonnes at 30 June 2007. Milling at the Burbanks facility is expected to continue at a rate of 15,000 tonnes per annum for the remainder of 2007.A total of 111,000 tonnes of Wattle Dam ore at a head grade of 7.2 g/t has been processed up to 30 September 2007 to produce 24,800 ounces of gold.
Resource Definition
A program of RC drilling was undertaken in the first half of 2007 designed to scope the potential for further mining at Wattle Dam. This program identified a high grade north plunging shoot beneath the Wattle Dam pit, with spectacular grades including 48m at 154 g/t (uncut) and 13m at 32 g/t (uncut).
A further program of RC drilling to further define this shoot commenced in June 2007 and is ongoing. A program of Diamond drilling commenced in September 2007 to define this high grade shoot below 200m depth.
Ramelius has contracted consultants to conduct mining feasibility studies into further open pit and underground mining at Wattle Dam. The results of this work are expected to be available to the company in early 2008.
A further program of RC drilling to further define this shoot commenced in June 2007 and is ongoing. A program of Diamond drilling commenced in September 2007 to define this high grade shoot below 200m depth.
Ramelius has contracted consultants to conduct mining feasibility studies into further open pit and underground mining at Wattle Dam. The results of this work are expected to be available to the company in early 2008.