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RAMELIUS RESOURCES LIMITED Interim / Quarterly Report 2022
65718_rns_2021-10-20_20d288d2-66ab-4955-8cd4-2f06dde63998.pdf
Interim / Quarterly Report
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21 October 2021
ISSUED CAPITAL Ordinary Shares: 815M
DIRECTORS
NON-EXECUTIVE CHAIR: Bob Vassie MANAGING DIRECTOR: Mark Zeptner NON-EXECUTIVE DIRECTORS: Michael Bohm David Southam Natalia Streltsova
COMPANY SECRETARY: Richard Jones
www.rameliusresources.com.au [email protected]
RAMELIUS RESOURCES LIMITED
Registered Office
Level 1, 130 Royal Street East Perth WA 6004 Tel +61 8 9202 1127 PO Box 6070 East Perth, WA 6892
21 October 2021
September 2021 Quarterly Activities Report
HIGHLIGHTS
- Quarterly group gold production of 65,686 ounces at an AISC of A$1,445/oz
- o Mt Magnet (incl. Vivien) 33,958 ounces
- o Edna May (incl. Marda) 31,728 ounces
- Cash & gold of A$273.9M (June 2021 Qtr: A$234.0M)
- Net cash & gold increased A$39.9M across the Quarter
- Publication of 2021 Resource & Reserve Statement1
- o Mineral Resources of 110Mt at 1.6 g/t Au for 5.4Moz gold
- o Ore Reserves of 17Mt at 2.0 g/t Au for 1.1Moz gold
- Broad exploration results from early stage, deeper RC drilling of the Bartus East Prospect at Mt Magnet include:
- o 82m at 1.65 g/t Au from 131m in GXRC0864, incl. 18m at 5.15g/t Au from 139m
- o 99m at 1.02 g/t Au from 178m in GXRC0865, incl. 4m at 12.4g/t Au from 259m
PRODUCTION GUIDANCE – H1 FY22
- Group gold production Guidance for H1 FY22 remains on track for 130,000 – 150,000 ounces at an AISC of A$1,450 – 1,550/oz, with the September 2021 Quarter performance slightly better than with expected and the December 2021 Quarter forecast stronger again, as previously flagged
- Unchanged capital & project development expenditure of approximately A$50M, incl.:
- o Mt Magnet A$4M
- o Penny A$27M
- o Tampia A$12M
- o Marda (Die Hardy) A$7M
CORPORATE
- Quarterly gold sales of 55,075 ounces for total revenue of A$127.6M from an average gold price of A$2,317/oz.
- Cash & gold on hand increased to A$273.9M (Jun 2021 Qtr: A$234.0M) after receipt of payment for the sale of Kathleen Valley lithium royalty (A$30.25M) and further investment in the development of the Ramelius' portfolio, including A$7.4M on exploration and A$18.9M in project development costs.
- As at the end of September 2021, forward gold sales consisted of 196,000 ounces of gold at an average price of A$2,363/oz, for the period out to September 2023.
- Subsequent to the end of the Quarter, on 18 October 2021 Ramelius announced it was making a recommended off-market takeover offer for Apollo Consolidated Limited (ASX:AOP)
1 See RMS ASX Release, "Resources and Reserves Statement 2021", 10 September 2021
SEPTEMBER 2021 QUARTER PRODUCTION & FINANCIAL SUMMARY
Table 1: September 2021 Quarter production & financial summary
| Operations | Unit | Mt Magnet 1 | Edna May 1 | Group |
|---|---|---|---|---|
| OP ore mined (high grade only) | t | 374,391 | 507,059 | 881,450 |
| OP grade mined | g/t | 1.25 | 2.10 | 1.74 |
| OP contained gold (high grade only) | Oz | 15,054 | 34,190 | 49,244 |
| UG ore mined (high grade only) | t | 182,756 | 52,496 | 235,252 |
| UG grade mined | g/t | 4.51 | 4.49 | 4.51 |
| UG contained gold (high grade only) | Oz | 26,498 | 7,583 | 34,081 |
| Total ore mined | t | 557,147 | 559,555 | 1,116,702 |
| Total tonnes processed | t | 451,669 | 687,458 | 1,139,127 |
| Grade | g/t | 2.43 | 1.60 | 1.93 |
| Contained gold | Oz | 35,348 | 35,342 | 70,690 |
| Recovery | % | 96.7 | 93.5 | 95.1 |
| Gold produced | Oz | 34,189 | 33,056 | 67,245 |
| Gold poured | Oz | 33,958 | 31,728 | 65,686 |
| Gold sales | Oz | 30,473 | 24,602 | 55,075 |
| Achieved gold price | A$/Oz | $2,317 | $2,317 | $2,317 |
| Cost summary | ||||
| Mining - operating | $M | 30.6 | 24.1 | 54.7 |
| Processing | $M | 12.7 | 14.0 | 26.7 |
| Administration | $M | 4.7 | 4.3 | 9.0 |
| Stockpile movements | $M | (11.9) | (6.6) | (18.5) |
| C1 cash cost | $M | 36.1 | 35.8 | 71.9 |
| C1 cash cost | A$/prod oz | $1,056 | $1,083 | $1,069 |
| Mining costs - development | $M | 6.3 | 3.7 | 10.0 |
| Royalties | $M | 3.4 | 2.6 | 6.0 |
| Movement in finished goods | $M | (6.4) | (10.0) | (16.4) |
| Sustaining capital | $M | 3.3 | 0.6 | 3.9 |
| Corporate overheads | $M | 2.3 | 2.0 | 4.3 |
| AISC cost | $M | 45.0 | 34.7 | 79.7 |
| AISC per ounce | A$/sold oz | $1,476 | $1,407 | $1,445 |
1 The Mt Magnet operation reported above includes Vivien whilst the Edna May operation includes Marda and Tampia.
PRODUCTION TARGETS
FY22
Production Guidance for FY22 remains at 260,000 – 300,000 ounces at an AISC of A$1,425 – 1,525/oz with the Half Year breakdown by major ore source shown below in Figure 1 (assuming mid-point for production guidance).
Figure 1: FY22 Group Production Profile
The matching capital requirements, by Half Year, are shown below in Table 2.
| Operation (A$M) | FY22 1st Half(Forecast) | FY22 2nd Half(Forecast) | FY22(Forecast) |
|---|---|---|---|
| Mt Magnet | 4.0 | 7.0 | 11.0 |
| Penny | 27.0 | 11.2 | 38.2 |
| Marda | 7.1 | 4.0 | 11.1 |
| Tampia | 11.9 | - | 11.9 |
| Total – Non-Sustaining Capital | 50.0 | 22.2 | 72.2 |
* No change from prior Quarter estimates
FY22 Exploration Expenditure
The forecast exploration expenditure for FY22 remains A$32.1 million, with A$19.0 million budgeted for H1 of FY22 and A$13.1 million for H2. The main areas of focus and expenditure are highlighted below in Figure 2.
Figure 2: FY22 Exploration Expenditure
OPERATIONS
Safety, Environment, Heritage & Community
There were two Lost Time Injuries and ten Restricted Work Injuries during the Quarter and the Total Recordable Injury Frequency Rate (TRIFR) was 17.25 as at the end of September 2021.
Figure 3: Ramelius Group Injury Statistics & TRIFR
In terms of COVID-19, Ramelius maintains certain procedures, related to physical distancing and pre-commute screening. The Company continues to apply new restrictions as they are introduced, including wearing of clinical masks on aircraft where required, as well as carrying out temperature testing and screening processes prior to commuting to sites. Preparations to comply with mandatory vaccinations have commenced.
There were no significant environmental, heritage or community related incidents reported during the Quarter.
Mt Magnet (Murchison)
Open Pits
Mining operations continued to concentrate on the Eridanus open pit. With completion of the cutback to the original pit level, ore production rose significantly. A total of 366,577 tonnes of ore grading 1.22 g/t was mined in the Quarter for 14,383 ounces of contained gold. The increased production means higher grade ore is again being preferentially milled and surplus ore stockpiled.
Figure 4: Eridanus open pit looking north-east
Underground
Shannon underground production continued steadily and generated high grade ore. Production totalled 62,801 tonnes at a mined grade of 5.65g/t for 11,400 ounces of contained gold. Development was completed to the 1125L with the mine moving into primarily stope production. The Hill 60 underground mine continued throughout the Quarter with a focus on stope production. A total of 66,300 tonnes at 3.03g/t was mined for 6,463 ounces of contained gold. The decline was recommenced with development down to the 120mRL level.
Vivien (Leinster)
At Vivien, production tonnages and grade were up on the prior Quarter. Vivien attributed mill production was 52,509 tonnes at 5.22g/t for 8,641 recovered ounces. An underground resource infill and extensional drilling program was in progress for the Quarter. Initial drilling targeted above the upper 400mRL level south and mid-levels of the East lode. Results above the 400mRL level were encouraging with potential for another level and/or pit cutback potential. East lode results were less promising.
Mt Magnet Processing
Mill production (Mt Magnet and Vivien) remained strong with processing of 451,669 tonnes at a grade of 2.43g/t for 34,188 recovered ounces at a recovery of 96.7%. The AISC for the Quarter for Mt Magnet was A$1,476/oz. Guidance for the H1 FY22 for the Mt Magnet production centre including Vivien and Penny, remains for approximately 70,000 ounces.
Edna May (Westonia)
Underground
The Quarter saw steady underground production of 52,496 tonnes at 4.49g/t for 7,583 ounces of contained gold. Ore sources for the mill comprised of historic oxide low grade stockpiles, Greenfinch, Tampia, Marda, and Edna May underground.
An underground diamond drilling program was carried out to infill and extend the Jonathan & Fuji lodes and test additional lode positions. New results were available for 30 holes totaling 3,463m. Some strong intercepts were returned from the Jonathan & Fuji quartz lodes including:
- ➢ 3m at 57.2 g/t Au from 132m in AUD207 Jonathan
- ➢ 3.8m at 26.5 g/t Au from 66.2m in AUD242 Fuji
- ➢ 4m at 6.97 g/t Au from 89.2m in AUD217 Jonathan
These results confirm the economic extension of the lodes. Most holes are also drilled within the broader mineralised Edna May Gneiss unit, with significant examples including:
- ➢ 171m at 1.22 g/t Au from 0m in AUD216
- ➢ 163m at 1.84 g/t Au from 8m in AUD207
- ➢ 150m at 2.25 g/t Au from 0m in AUD211
See Attachment 1 below for detailed drilling results.
Open Pit
The Greenfinch pit was completed in August 2021. Final mill reconciled production was 1.7Mt at 1.02g/t for 50,424 ounces of recovered gold
Marda (Yilgarn)
Mining of the open pits at Marda continued during the Quarter. The Python open pit (refer Figure 5) was completed and mining commenced at Golden Orb. Steady progress continued at the Dolly Pot and King Brown pits. Ore haulage to Edna May was restricted early in the Quarter by wet weather but haulage capacity was fully utilised by switching to the Tampia operation.
A total of 139,434 tonnes of ore at 1.87g/t were mined for 8,382 ounces of contained gold. As at the end of September 2021, a total of 447,000 tonnes of ore was stockpiled at Marda awaiting haulage to, and processing at, Edna May.
Figure 5: Python open pit
Tampia (Narembeen)
Major progress was made at Tampia during the Quarter, with significant mining of the open pit occurring and commencement of ore haulage and milling. The large phase one RC grade control drilling programme was completed, with results in line with the resource model expectations. Further site establishment and infrastructure works were also completed. A total of 254,042 tonnes of ore at 2.64g/t was mined for 21,599 ounces of contained gold.
Drilling identified some excellent high-grade zones within the Mace paleochannel zone (refer Figure 6) and these were mined in September 2021 and gave a noticeable boost to milled grades late in the Quarter.
| MGC0031 | MPRC304 | MGC0016 | MGCDDD9 | Mecaas | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0,9.1 | 0.2 | 0.3 | $\sqrt{0.2}$0.3 1 | 0.4 | 0.8U.2 | 0.2 | 0.30.20.1 | 0.3 | $-0.2 - 0.2$$\Box$$0.1\frac{0.2}{1.0}$ | 0.4 | |||
| 0.00.00.1 | 0.3 | 0.3 | -9.00,0$0.3 -$$\overline{0}.1$ | 0.3 | , 0.10.1 | 0.4 | 0.2 | 0.00.20.0 | 0.3 | 0.1$\Box$0.3 | $0.4 -$0.8 | ||
| 0.2$\frac{10.3}{0.4}$ | $0.3,$ | 0.3 | 0.7$^{-}$ 0.20.3 | 0.3 | 0.20.5 | 0.4 | 0.3 | 0.2 | $0.1 - 0.2$J.J. | 0.2 | 0.4$\Box$$0.3 -$ | 13.1 | |
| $0.3 -$ | 1.0 | 0.2 | 4.6 | 4.8$0.9 -$ | 9.4 | 106.1 | 0 B | ||||||
| 21.56.9 | 6.7 | 10.8 | 1.012.353.5 | 14.9 | $^{0.2}$0.9 | 10.0 | 5.1 | 3.25.11.5 | 10.3 | $91.2$ 18 $40.8$161.0 | 16.7 | ||
| 8.544.9 | 6.7 | 11.5 | 57.613.2$d.\overline{8}$ | 16.5 | 31.2214.0 | 11.4 | 6.1 | 2.5$21.0^{-7.1}$$1.3 -$ | 12.6 | 34.916 157.0820.8 | 19.7 | ||
| 0.7bQ.7 | 0.3 | 0.3 | 0.3$-0.2$$\overline{0}$ 20.3 | 14.00.4 | 4.34.02.4 | 9.0 | 5.4 | U.Z | $1.0$ $7.0$$\begin{bmatrix} 0.3 & 0.2 \end{bmatrix}$ | 11.0$0.3,$0.3 | 0.2 | $0.2 -$ | |
| 0.50.2$^{+2}_{-0.2}$ | 0.3 | 0.3 | $\frac{1}{10.1}$0.3 | 0.40.4 | 0.5$\overline{0.7}$0.5$-0.6$ | $0_6 6_3$ | 0.2 | 0.1 | 0.10.20.1 | 0.2 | 0.2 | ||
| 0.2$\frac{1}{0}$ 0.1 | $0.3,$0.20.2 | $0.3$ 00.3 | 0.3 | 0.40.30.4 | $-0.9$$0.5 - 0.5$ | 0.4 | 0.20.3 | 0.1 | $^{\circ}$ 0.10.1 | 0.1 | 0.1 | ||
| $0.2 -$ | $\mathbf{Q}_{.2}$ | $0.2$ 5 | $0.3 -$ | 10m 0.30.4 | $0.4$ da $0.5$ | 0.4 | 0.3 | 0.2 | 0.1 | $0.1 -$ | 0.10.1 | 0.1 | |
| $0.4$ da $0.4$ | 0.3 | 0.2 | 0.1 | 0.1 |
Figure 6: Tampia Mace GC zone drilling & model
Edna May Processing
As a result of the introduction of higher grade ore from Tampia, mill production was higher for the Quarter with total material milled of 687,458 tonnes at 1.60g/t for 33,056 recovered ounces at a recovery of 93.5%. Gold production from the Edna May mill was up on the June 2021 Quarter by 22% on the back of a 26% increase in the mill grade. AISC for the Quarter was A$1,407/oz.
Guidance for H1 FY22 from the Edna May production centre including Marda and Tampia, is approximately 70,000 ounces.
PROJECT DEVELOPMENT
Penny (Murchison)
Open pit mining commenced at the small Magenta open pit, located 1.5km north of Penny. This pit targets a smaller quartz lode and will also serve as a dewatering location for the Penny West pit cutback and Penny North underground (refer Figure 7). Mining is targeting the lode based on resource drilling, mapping, grab-and-rip sampling.
Claimed mine production for Quarter was 7,815t at 2.67g/t for 670oz, which was all stockpiled for future transport to Mt Magnet. Site preparation for the Penny West cutback commenced with waste dump topsoil stripping.
Figure 7: Magenta pit mining
MINING/PROCESSING STUDIES
Galaxy Underground (Mt Magnet)
An updated resource model was generated during the Quarter to allow for more detailed mine design work to be carried out, with mining contract rates in the process of being agreed with the incumbent underground mining contractor.
An inspection of the upper portion of the Hill 50 decline (refer Figures 8 & 9) has been undertaken to assess its condition and suitability to access the Mars lodes. Ground conditions away from the influence of pit cutbacks mined by Ramelius were found to be very good. Dewatering of the old workings via surface raise bores has commenced.
For completeness, several additional geotechnical drill holes are deemed to be required south of the Hill 50 fault and therefore the Galaxy Underground Pre-Feasibility Study is now expected to be finalised by the end of January 2022.
Figure 8: Initial section of Hill 50 decline below portal
Figure 9: Lower section of Hill 50 decline
Edna May Stage 3
The Edna May Stage 3 assessment has focused on refinement of mining contractor costs by examining drill and blast configurations, productivity effects of different haulage routes and reconfiguration of waste dumps, as well as backfilling of the mined-out Greenfinch pit and possibly the Golden Point end of the Stage 3 itself.
RC drilling, focused on the Golden Point area, was also carried out during the Quarter with drilling completed and some initial results received (see Exploration Summary for further information). Remodelling of the resource will not commence until all drill results are received which is not expected until later in the year.
EXPLORATION SUMMARY
Exploration activities for the Quarter comprised RC drilling along the Macross-South Virgo trend, Bartus East and Bartus North Prospects, diamond drilling at Eridanus Deeps, and completion of a 2D Seismic Survey, all at Mt Magnet. At Edna May, RC and underground diamond drilling have been conducted at Golden Point, a combined exploration-resource development programme. Assay results have been received from previously completed Penny Deeps diamond drilling, Eridanus Deeps diamond drilling, Macross-South Virgo, Bartus East and North RC, and from the first three holes of the Golden Point RC programme at Edna May.
Mt Magnet (WA)
Twenty (20) RC drill holes for 2,544m have been completed along the Macross-South Virgo trend to test an Eridanus analogue exploration target. A further seven RC holes were drilled at the Bartus East and Bartus North Prospects for 1,582m, targeting an area of structural complexity adjacent to shallow historic pits. At Eridanus Deeps, one diamond tail has been completed for 442.6m to test continuity of recently identified high grade mineralisation.
Encouraging assay results have been returned from early stage, deeper RC drilling at the Bartus East Prospect beneath shallow historic open pit mining and previous supergene drilling, significant mineralised zones include:
➢ 82m at 1.65g/t Au from 131m in GXRC0864, including 18m at 5.15g/t Au from 139m (incl. 1m at 54.9g/t Au), and 12m at 1.12g/t Au from 163m, and 4m at 1.94g/t Au from 178m, and 4m at 2.02g/t Au from 209m ➢ 99m at 1.02g/t Au from 178m in GXRC0865, including 12m at 1.29g/t Au from 163m, and 4m at 12.4g/t Au from 259m (incl. 1m at 45.8g/t Au)
Broad composite intervals are supported by discrete higher grade internal segments. Mineralisation is hosted by sericitesilica-albite altered intrusive granodiorite porphyry, with higher grade zones typically associated with increased vein quartz density and pyrite. Modelled granodiorite porphyry geometry based on sparse drilling suggests a lithological strike extent of up to 270m, with the favourable host unit thickening at depth. Further evaluation drilling is being planned.
Figure 10: Bartus East Cross Section
At Eridanus, results from deep diamond drill hole GXDD0119 have been received, with significant results reporting:
- ➢ 1m at 10.6g/t Au from 40m in GXDD0119
- ➢ 12m at 1.76g/t Au from 387m
- ➢ 19m at 1.12g/t Au from 475m
- ➢ 2.9m at 78.3g/t Au from 514.4m, including
- ➢ 0.4m at 536g/t Au from 514.4m
The high grade interval above is sourced from a previously reported quartz vein containing coarse visible gold and associated galena and sphalerite. The result follows another recent high grade result of 0.55m at 1320g/t Au in drill hole GXRC2185 (ASX Release 'June 2021 Quarterly Activities Report', 29 July 2021) and the possibility of more continuous high grade veining has been considered in light of a previously identified high grade vein set mapped within the Eridanus pit. An additional drill hole was completed during the period to test interpreted high grade vein continuity – results of that hole remain pending.
Figure 11: Eridanus Composite Cross Section with recent drill results
All results have been received for RC drilling completed along the Macross-South Virgo trend. In general, only weak mineralisation has been identified with best results of:
- ➢ 5m at 1.69g/t Au from 45m in GXRC0835
- ➢ 11m at 1.19g/t Au from 118m in GXRC0841
Drilling results from the programme have defined a corridor of sub-economic, low grade mineralisation.
A 2D Seismic Survey has been completed across the Boogardie Dome at Mt Magnet, with the aim of increased definition of geology and structural framework to assist in target generation. A total of 33.3 line kilometres have been covered.
Edna May (WA)
A combined exploration-resource development RC and underground diamond drilling programme has commenced at Golden Point with an advance of 3,694m of RC in 18 holes, and 400m of diamond coring in 2 holes. The programme has the potential to extend mineralisation within the Golden Point Gneiss to the southeast of the existing pit and therefore support the Edna May Stage 3 cut-back.
Assay results for only the first three drill holes (GPRC109 - 111) have been returned – with significant results including:
- ➢ 2m at 9.24g/t Au from 245m in GPRC109
- ➢ 1m at 90.7g/t Au from 275m in GPRC109
- ➢ 2m at 8.12g/t Au from 169m in GPRC110
- ➢ 5m at 2.51g/t Au from 27m in GPRC111
- ➢ 5m at 1.78g/t Au from 133m in GPRC111
The bulk of mineralisation within the Edna May deposit occurs within the Edna May Gneiss (EMG) host unit. A second mineralised host, the Golden Point Gneiss (GPG) unit is situated in the footwall of the north dipping EMG and becomes more significant in size towards the east as the EMG narrows (refer Figure 12). Mineralisation within the GPG is of a lower tenor in comparison to the EMG, however its location at the eastern pit edge provides a potential incremental benefit to deeper pit optimisation and cut-back.
With the exception of the 5m at 2.51g/t Au in drill hole GPRC111 (from the EMG), results above are situated within the GPG unit and are associated with weakly developed vein stockworking and sulphide development. Further drilling data is required to gauge continuity of these mineralised intervals.
Figure 12: Edna May - Golden Point RC drilling
Penny (WA)
Assay results from deep diamond drilling completed at Penny during the previous Quarter have now been returned – no significant results are reported. Downhole electromagnetic surveys have been conducted and did not identify any offhole conductor zones of interest. Target areas are being re-evaluated.
CORPORATE & FINANCE
Cash & Gold
Gold sales for the September 2021 Quarter were 55,075 ounces at an average price of A$2,317/oz for gold sales revenue of A$127.6M.
| Cash & gold | Unit | Dec-20 | Mar-21 | Jun-21 | Sep-21 |
|---|---|---|---|---|---|
| Cash on hand | A$M | 204.0 | 220.0 | 228.5 | 242.4 |
| Bullion sold awaiting settlement | A$M | 7.4 | - | - | - |
| Bullion1 | A$M | 10.1 | 10.6 | 5.4 | 31.5 |
| Total cash & gold | A$M | 221.5 | 230.6 | 234.0 | 273.9 |
| Outstanding Debt | A$M | (8.1) | (8.1) | - | - |
| Net cash & gold | A$M | 213.4 | 222.5 | 234.0 | 273.9 |
| Listed investments | A$M | 4.1 | 3.9 | 6.3 | 6.4 |
| Net cash, gold and investments | A$M | 217.5 | 226.4 | 240.3 | 280.3 |
Table 3: Cash, gold, and investments
- Bullion is valued at the September 2021 spot price of A$2,430/oz.
As at 30 September 2021, the Company had A$242.3M of cash and A$31.5M of gold bullion on hand for a net cash & gold position at the end of the Quarter of A$273.9M. The increase in gold bullion relates to the timing of gold shipments. This represents an increase in net cash & gold of A$39.9M from the June 2021 Quarter. The underlying cash flow generated by the business was A$17.9M which was up on the prior Quarter (A$14.7M) on higher gold production.
The cash flows for the Quarter included a strong AISC margin (excluding ROM stockpile movements) of A$37.0M which was, in part, re-invested into the development of the Ramelius asset portfolio, notably A$8.3M on the development of the Tampia Gold Mine (including pre-strip activities), A$8.8M on the development of the Penny Gold Mine, and A$7.4M in exploration expenditure (refer Figure 13).
Figure 13: Quarterly movement in net cash and gold
* includes increase in gold bullion on hand
Forward Gold Sales
At the end of the Quarter forward gold sales consisted of 196,000 ounces of gold at an average price of A$2,363/oz over the period October 2021 to September 2023.The hedge book summary is shown below in Table 4.
Takeover Offer for Apollo Consolidated Limited
Subsequent to the end of the Quarter, on 18 October 2021, Ramelius and Apollo Consolidated Limited (ASX:AOP) (Apollo) announced that they have entered into a Bid Implementation Agreement (BIA), pursuant to which Ramelius will offer to acquire all the issued ordinary shares of Apollo by way of an off-market takeover offer.
Under the terms of the Offer, Apollo Shareholders will receive cash consideration of $0.34 and 0.1375 Ramelius shares for each Apollo share held. The offer consideration values each Apollo share at $0.56 (Offer Price), based on the 3 day volume weighted average price (VWAP) of Ramelius shares up to and including 15 October 2021 of $1.60, and implies a total equity value for Apollo of approximately $163 million.
The offer has the support of the Apollo Board and management, equivalent to ~13.7% of Apollo's share register.
Conference Call
The Company wishes to advise that Mark Zeptner (Managing Director) and Tim Manners (Chief Financial Officer) will be holding an investor conference call to discuss the Quarterly Activities Report at 8:00am AWST / 10:00am AEST/ 11:00am AEDT on Thursday 21 st October 2021. To listen in live, please click on the link below and register your details: https://s1.c-conf.com/diamondpass/10017077-l1po2s.html
Please note it is best to log on at least five minutes before the scheduled commencement time to ensure you are registered in time for the start of the call. Investors are advised that a recording of the call will be available on the Company's website approximately one hour after the conclusion of the call.
This ASX announcement was authorised for release by the Board of Directors.
For further information contact:
Investor enquiries: Media enquiries:
Mark Zeptner
Managing Director Ramelius Resources Ltd Ph: +61 8 9202 1127
Tim Manners
Chief Financial Officer Ramelius Resources Ltd Ph: +61 8 9202 1127
Jason Marocchi
Managing Partner GRA Partners Ph: +61 421 005 765
ABOUT RAMELIUS
Figure 14: Ramelius' Operations & Development Project Locations
Ramelius owns and operates the Mt Magnet, Edna May, Vivien, Marda, Tampia and Penny gold mines, all of which are located in Western Australia (refer Figure 14). Ore from the high-grade Vivien underground mine, located near Leinster, is hauled to the Mt Magnet processing plant where it is blended with ore from both underground and open pit sources at Mt Magnet. The Penny project is currently under development with first ore in late FY22.
The Edna May operation is currently processing high grade underground ore, low grade stockpiles, as well as ore from the adjacent Greenfinch open pit and the satellite Marda open pit mines. Ore feed from the Tampia open pit mine commenced in early FY22.
FORWARD LOOKING STATEMENTS
This report contains forward looking statements. The forward looking statements are based on current expectations, estimates, assumptions, forecasts and projections and the industry in which it operates as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. The forward looking statements relate to future matters and are subject to various inherent risks and uncertainties. Many known and unknown factors could cause actual events or results to differ materially from the estimated or anticipated events or results expressed or implied by any forward looking statements. Such factors include, among others, changes in market conditions, future prices of gold and exchange rate movements, the actual results of production, development and/or exploration activities, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns. Neither Ramelius, its related bodies corporate nor any of their directors, officers, employees, agents or contractors makes any representation or warranty (either express or implied) as to the accuracy, correctness, completeness, adequacy, reliability or likelihood of fulfilment of any forward looking statement, or any events or results expressed or implied in any forward looking statement, except to the extent required by law.
PREVIOUSLY REPORTED INFORMATION
Information in this report references previously reported exploration results and resource information extracted from the Company's ASX announcements. For the purposes of ASX Listing Rule 5.23 the Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.
COMPETENT PERSONS
The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Peter Ruzicka (Exploration Results), Rob Hutchison (Mineral Resources) and Paul Hucker (Ore Reserves), who are Competent Persons and Members of The Australasian Institute of Mining and Metallurgy. Peter Ruzicka, Rob Hutchison and Paul Hucker are full-time employees of the company. Peter Ruzicka, Rob Hutchison and Paul Hucker have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Peter Ruzicka, Rob Hutchison and Pual Hucker consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.
| Hole ID | Easting | Northing | RL | Az/Dip | F/Depth(m) | From(m) | To(m) | Interval(m) | g/t Au | Lode |
|---|---|---|---|---|---|---|---|---|---|---|
| AUD216 | 11675 | 9745 | 940 | 288/-32 | 171Incl. | 0.0130.0 | 171.0136.0 | 171.06.0 | 1.224.44 | J |
| AUD219 | 11675 | 9745 | 940 | 295/-27 | 143.6 | 0.0 | 143.6 | 143.6 | 0.91 | |
| Incl. | 112.7 | 115.8 | 3.1 | 13.46 | J | |||||
| AUD207 | 11661 | 9667 | 939 | 301/-28 | 171 | 8.0 | 171.0 | 163.0 | 1.84 | |
| Incl. | 132.0 | 135.0 | 3.0 | 57.18 | J | |||||
| AUD242 | 11615 | 9754 | 941 | 065/-09 | 110 | 0.0 | 110.0 | 110.0 | 1.58 | |
| Incl. | 66.2 | 70.0 | 3.8 | 26.52 | F | |||||
| AUD192 | 11577 | 9644 | 964 | 140/-12.7 | 100 | 0.0 | 100.0 | 100.0 | 0.62 | |
| Incl. | ||||||||||
| AUD204 | 11661 | 9665 | 940 | 290/-33 | 163 | 23.0 | 163.0 | 140.0 | 1.13 | |
| Incl. | 107.0 | 111.0 | 4.0 | 16.09 | J | |||||
| AUD206 | 11661 | 9665 | 940 | 289-27 | 153 | 20.0 | 153.0 | 133.0 | 0.73 | |
| Incl. | 106.2 | 118.0 | 11.8 | 1.82 | J | |||||
| AUD209 | 11646 | 9697 | 940 | 275-23 | 101.5 | 0.0 | 101.5 | 101.5 | 1.94 | |
| Incl. | 70.4 | 73.8 | 3.3 | 13.5 | J | |||||
| AUD210 | 11646 | 9697 | 940 | 285/-21 | 95.2 | 0.0 | 95.2 | 95.2 | 4.04 | |
| Incl. | 38.0 | 40.3 | 2.3 | 6.10 | Jz | |||||
| Incl. | 13.0 | 20.6 | 7.6 | 16.2 | ||||||
| AUD212 | 11675 | 9745 | 941 | 276/-24 | 123 | 0.0 | 123.0 | 123.0 | 0.95 | |
| Incl. | 106.0 | 108.0 | 2.0 | 10.21 | J | |||||
| AUD214 | 11675 | 9745 | 941 | 284/-26 | 132 | 0.0 | 132.0 | 132.0 | 2.62 | |
| Incl. | 111.6 | 113.9 | 2.3 | 9.67 | J | |||||
| Incl. | 42.0 | 44.0 | 2.0 | 109.70 | ||||||
| AUD222 | 11652 | 9700 | 941 | 106/25 | 43.9 | 2.0 | 43.9 | 41.9 | 1.02 | |
| AUD223 | 11652 | 9700 | 941 | 054/-31 | Incl.29.2 | 40.30.0 | 41.329.2 | 1.029.20 | 8.043.54 | R |
| Incl. | 18.3 | 22.9 | 4.7 | 12.64 | R | |||||
| AUD224 | 11652 | 9700 | 941 | 063/16 | 50.6 | 2.0 | 50.6 | 48.6 | 7.41 | |
| Incl. | 38.0 | 42.6 | 4.7 | 67.76 | R | |||||
| AUD240 | 11614 | 9755 | 941 | 041/-55 | 75.1 | 0.0 | 75.1 | 75.1 | 0.68 | |
| Incl. | 64.5 | 66.3 | 1.8 | 4.7 | F | |||||
| AUD244 | 11675 | 9745 | 941 | 280/-08 | 84 | 0.0 | 84.0 | 84.0 | 2.09 | |
| Incl. | 65.8 | 66.8 | 1.1 | 4.6 | J | |||||
| Incl. | 8.0 | 17.9 | 9.9 | 11.5 | ||||||
| AUD198 | 12056 | 9508 | 1182 | 150/02 | 149.8 | 0.0 | 149.8 | 149.8 | 0.65 | |
| Incl. | 60.8 | 61.7 | 0.9 | 81.80 | ||||||
| AUD196 | 12066 | 9525 | 1180 | 130/-20 | 120 | 3.0 | 123.0 | 120.0 | 0.42 | |
| Incl. | 71.4 | 71.8 | 0.4 | 57.10 | ||||||
| Incl. | 94.7 | 98.2 | 3.5 | 4.53 | ||||||
| AUD197 | 12066 | 9525 | 1180 | 125/-43 | 110.7 | 0.0 | 110.7 | 110.7 | 0.16 | |
| AUD201 | 12056 | 9508 | 1182 | 155/-25 | 101.9 | 3.3 | 101.9 | 98.7 | 0.44 | |
| Incl. | 39.0 | 40.8 | 1.8 | 10.54 | ||||||
| AUD218 | 11675 | 9745 | 941 | 300/-19 | 120 | 0.0 | 120.0 | 120.0 | 0.80 | |
| Incl. | 83.3 | 84.0 | 0.8 | 10.7 | J | |||||
| AUD203 | 11661 | 9667 | 939 | 280/-31 | 135 | 28.0 | 135.0 | 107.0 | 1.13 | |
| Incl. | 90.0 | 92.2 | 2.2 | 16.83 | J | |||||
| AUD211 | 11675 | 9745 | 940 | 274/-31 | 150 | 0.0 | 150.0 | 150.0 | 2.25 | |
| Incl. | 133.7 | 136.0 | 2.3 | 49.4 | J | |||||
| AUD217 | 11675 | 9745 | 941 | 284/-18 | 113 | 0.0 | 113.0 | 113.0 | 1.73 | |
| Incl. | 89.2 | 93.2 | 4.0 | 6.97 | J |
Attachment 1: Edna May UG Resource Definition Drilling
| AUD220 | 11652 | 9699 | 940 | 104/-40 | 29 | 0.0 | 29.0 | 29.0 | 0.93 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Incl. | 22.0 | 23.2 | 1.3 | 7.78 | R | |||||
| AUD193 | 12066 | 9525 | 1180 | 115/-04 | 176.8 | 2.0 | 176.8 | 174.8 | 0.24 | |
| Incl. | 79.2 | 82.0 | 2.8 | 3.31 | ||||||
| AUD194 | 12066 | 9525 | 1180 | 100/-31 | 138 | 4.0 | 138.0 | 134.0 | 0.26 | |
| Incl. | 119.2 | 124.8 | 5.6 | 3.30 | ||||||
| AUD195 | 12066 | 9525 | 1,180 | 135/01 | 158.8 | 0.0 | 158.8 | 158.8 | 0.20 | |
| AUD199 | 12056 | 9508 | 1,182 | 170/-06 | 126 | 0.0 | 126.0 | 126.0 | 0.25 | |
| AUD200 | 12056 | 9508 | 1182 | 161/-50 | 89.2 | 0.0 | 89.2 | 89.2 | 0.42 | |
| Incl. | 41.0 | 42.1 | 1.1 | 16.17 |
Reported gold assay intersections are reported for bulked Edna May stockwork mineralisation and can contain significant zones of sub-economic (<0.4g/t Au) but typically anomalous material. Gold determination was by Fire Assay using a 50gm charge with AAS finishes and a lower limit of detection of 0.01 ppm Au. True widths of the mineralised intersection are ~70-80% of the reported downhole intersection. Coordinates are local grid.
| Attachment 2: Bartus East RC Drilling Results – Mt Magnet, WA | ||||||
|---|---|---|---|---|---|---|
| --------------------------------------------------------------- | -- | -- | -- | -- | -- | -- |
| Hole ID | Easting | Northing | RL | Az/Dip | F/Depth(m) | From(m) | To(m) | Interval(m) | g/t Au |
|---|---|---|---|---|---|---|---|---|---|
| GXRC0861 | 579186 | 6892930 | 424 | 135/-56 | 202 | 143 | 147 | 4 | 0.61 |
| 150 | 151 | 1 | 2.62 | ||||||
| GXRC0862 | 579235 | 6892767 | 423 | 318/-60 | 208 | 80 | 83 | 3 | 0.95 |
| 97 | 98 | 1 | 5.48 | ||||||
| 103 | 106 | 3 | 0.81 | ||||||
| 111 | 120 | 9 | 0.77 | ||||||
| 123 | 125 | 2 | 0.79 | ||||||
| 130 | 137 | 7 | 0.65 | ||||||
| 147 | 151 | 4 | 3.71 | ||||||
| GXRC0863 | 579276 | 6892784 | 423 | 314/-54 | 238 | 54 | 56 | 2 | 2.48 |
| 92 | 95 | 3 | 0.82 | ||||||
| 121 | 176 | 55 * | 0.44 | ||||||
| incl. | 121 | 126 | 5 | 1.46 | |||||
| incl. | 144 | 147 | 3 | 0.57 | |||||
| incl. | 150 | 155 | 5 | 0.87 | |||||
| incl. | 166 | 168 | 2 | 1.56 | |||||
| GXRC0864 | 579152 | 6892908 | 423 | 135/-54 | 220 | 62 | 64 | 2 | 1.39 |
| 131 | 213 | 82 * | 1.65 | ||||||
| incl. | 131 | 136 | 5 | 0.63 | |||||
| incl. | 139 | 157 | 18 | 5.15 | |||||
| and | 153 | 154 | 1 | 54.9 | |||||
| incl. | 163 | 175 | 12 | 1.12 | |||||
| incl. | 178 | 182 | 4 | 1.94 | |||||
| incl. | 195 | 198 | 3 | 1.12 | |||||
| incl. | 209 | 213 | 4 | 2.02 | |||||
| GXRC0865 | 579257 | 6892688 | 423 | 317/-57 | 334 | 178 | 277 | 99 * | 1.02 |
| incl. | 178 | 183 | 5 | 0.8 | |||||
| incl. | 189 | 204 | 15 | 0.78 | |||||
| incl. | 214 | 226 | 12 | 1.29 | |||||
| incl. | 240 | 241 | 1 | 5.59 | |||||
| incl. | 252 | 254 | 2 | 1.8 | |||||
| incl. | 259 | 263 | 4 | 12.4 | |||||
| and | 259 | 260 | 1 | 45.8 | |||||
| incl. | 276 | 277 | 1 | 2.24 | |||||
| 281 | 284 | 3 | 0.5 |
| GXRC0866 | 579211 | 6892720 | 423 | 317/-53 | 196 | 109 | 111 | 2 | 0.61 |
|---|---|---|---|---|---|---|---|---|---|
| 160 | 163 | 3 | 2.79 | ||||||
| 166 | 168 | 2 | 0.61 | ||||||
| 172 | 175 | 3 | 1.89 | ||||||
Notes
Reported significant gold assay intersections (using a 0.50 g/t Au lower cut) are reported using +2m downhole intervals at plus 0.5g/t Au, with up to 2m internal dilution. Gold determination was by Fire Assay using a 50gm charge with AAS finishes and a lower limit of detection of 0.01 ppm Au. No topcut is applied. Coordinates are MGA94-Z50. * Denotes wider bulked grade over mineralised zone. True widths are currently undefined.
Attachment 3: Eridanus Diamond Drilling Results – Mt Magnet, WA
| Hole ID | Easting | Northing | RL | Az/Dip | F/Depth(m) | From(m) | To(m) | Interval(m) | g/t Au |
|---|---|---|---|---|---|---|---|---|---|
| GXDD0119 | 577102 | 6894417 | 432 | 255/-64 | 549.9 | 40 | 41 | 1 | 10.6 |
| 63 | 65 | 2 | 1.96 | ||||||
| 87.06 | 89.6 | 2.54 | 0.5 | ||||||
| 166 | 167 | 1 | 2.55 | ||||||
| 252 | 253.5 | 1.5 | 3.9 | ||||||
| 258 | 260 | 2 | 1.82 | ||||||
| 350 | 351 | 1 | 4.12 | ||||||
| 356 | 357.43 | 1.43 | 0.55 | ||||||
| 391.15 | 395 | 3.85 | 2.69 | ||||||
| 408 | 424 | 16 | 0.8 | ||||||
| 445 | 451 | 6 | 1.28 | ||||||
| 475 | 485 | 10 | 0.77 | ||||||
| 489 | 499 | 10 | 1.54 | ||||||
| 514.4 | 517.3 | 2.9 | 78.3 | ||||||
| incl. | 514.4 | 514.8 | 0.4 | 536 | |||||
| 523 | 528 | 5 | 0.54 | ||||||
| Notes |
Reported significant gold assay intersections (using a 0.50 g/t Au lower cut) are reported using +2m downhole intervals at plus 0.5g/t Au, with up to 2m internal dilution. Gold determination was by Fire Assay using a 50gm charge with AAS finishes and a lower limit of detection of 0.01 ppm Au. No topcut is applied. Coordinates are MGA94-Z50. * Denotes wider bulked grade over mineralised zone. True widths are currently undefined.
Attachment 4: Macross-South Virgo RC Drilling Results – Mt Magnet, WA
| Hole ID | Easting | Northing | RL | Az/Dip | F/Depth(m) | From(m) | To(m) | Interval(m) | g/t Au |
|---|---|---|---|---|---|---|---|---|---|
| GXRC0821 | 578252 | 6895580 | 435 | 271/-60 | 120 | NSR | |||
| GXRC0822 | 578299 | 6895580 | 437 | 273/-60 | 120 | NSR | |||
| GXRC0823 | 578400 | 6895580 | 436 | 273/-60 | 120 | NSR | |||
| GXRC0824 | 578391 | 6895680 | 437 | 271/-55 | 160 | 47 | 49 | 2 | 0.64 |
| GXRC0825 | 578189 | 6895380 | 436 | 268/-61 | 120 | NSR | |||
| GXRC0826 | 578237 | 6895380 | 436 | 272/-61 | 131 | NSR | |||
| GXRC0827 | 578289 | 6895380 | 436 | 269/-62 | 120 | NSR | |||
| GXRC0828 | 578320 | 6895280 | 435 | 269/-60 | 110 | 56 | 66 | 10 | 0.84 |
| GXRC0829 | 578355 | 6895281 | 435 | 271/-61 | 100 | 24 | 28 | 4 | 1.08 |
| GXRC0830 | 578393 | 6895280 | 435 | 270/-61 | 119 | NSR | |||
| GXRC0831 | 578201 | 6895180 | 435 | 270/-61 | 100 | NSR | |||
| GXRC0832 | 578199 | 6895580 | 437 | 269/-61 | 125 | NSR | |||
| GXRC0833 | 578340 | 6895380 | 436 | 270/-61 | 161 | 56 | 58 | 2 | 0.6 |
| 144 | 149 | 5 | 1.04 | ||||||
| GXRC0834 | 578385 | 6895380 | 436 | 268/-60 | 41 | NSR | |||
| GXRC0835 | 578385 | 6895379 | 436 | 262/-61 | 131 | 27 | 30 | 3 | 0.76 |
|---|---|---|---|---|---|---|---|---|---|
| 45 | 50 | 5 | 1.69 | ||||||
| 56 | 61 | 5 | 0.64 | ||||||
| GXRC0836 | 578352 | 6895580 | 436 | 268/-60 | 119 | 27 | 31 | 4 | 0.62 |
| GXRC0837 | 578250 | 6895180 | 435 | 273/-60 | 107 | NSR | |||
| GXRC0838 | 578294 | 6895177 | 435 | 269/-61 | 113 | 9 | 11 | 2 | 0.94 |
| GXRC0839 | 578364 | 6895080 | 434 | 272/-61 | 146 | 31 | 40 | 9 | 0.78 |
| 87 | 95 | 8 | 0.8 | ||||||
| 125 | 128 | 3 | 0.73 | ||||||
| GXRC0840 | 578482 | 6895080 | 434 | 271/-61 | 120 | NSR | |||
| GXRC0841 | 578413 | 6895180 | 435 | 270/-56 | 150 | 95 | 97 | 2 | 0.58 |
| 118 | 129 | 11 | 1.19 | ||||||
| GXRC0842 | 578533 | 6895175 | 435 | 271/-60 | 136 | 58 | 66 | 8 | 0.84 |
| 99 | 102 | 3 | 0.52 | ||||||
| GXRC0843 | 578267 | 6894870 | 434 | 270/-60 | 124 | NSR | |||
| GXRC0844 | 578308 | 6894880 | 434 | 271/-60 | 100 | NSR | |||
| GXRC0845 | 578382 | 6894870 | 433 | 271/-60 | 150 | NSR | |||
| GXRC0846 | 578441 | 6894880 | 433 | 271/-60 | 82 | NSR | |||
| GXRC0847 | 578500 | 6894880 | 433 | 269/-60 | 120 | NSR | |||
| GXRC0848 | 578558 | 6894845 | 433 | 271/-60 | 140 | NSR | |||
| GXRC0849 | 578346 | 6894708 | 433 | 271/-60 | 118 | 85 | 86 | 1 | 3.99 |
| GXRC0850 | 578410 | 6894711 | 433 | 271/-61 | 120 | NSR | |||
| GXRC0851 | 578472 | 6894702 | 433 | 272/-60 | 118 | NSR | |||
| GXRC0852 | 578230 | 6894690 | 433 | 270/-61 | 130 | NSR | |||
| GXRC0853 | 578288 | 6894693 | 433 | 269/-60 | 136 | 104 | 106 | 2 | 0.53 |
| 121 | 124 | 3 | 0.61 | ||||||
| GXRC0854 | 578069 | 6894500 | 432 | 269/-61 | 80 | NSR | |||
| GXRC0855 | 578009 | 6894403 | 432 | 272/-56 | 80 | NSR | |||
| GXRC0856 | 577974 | 6894500 | 432 | 270/-60 | 150 | 61 | 63 | 2 | 1.01 |
| GXRC0857 | 578140 | 6894500 | 432 | 269/-61 | 150 | 42 | 45 | 3 | 1.55 |
| GXRC0858 | 578216 | 6894492 | 432 | 269/-55 | 150 | NSR | |||
| GXRC0859 | 578107 | 6894402 | 432 | 269/-54 | 160 | 148 | 151 | 3 | 0.57 |
| GXRC0860 | 577999 | 6894570 | 433 | 271/-56 | 150 | NSR | |||
| Notes |
Reported significant gold assay intersections (using a 0.50 g/t Au lower cut) are reported using +2m downhole intervals at plus 0.5g/t Au, with up to 2m internal dilution. Gold determination was by Fire Assay using a 50gm charge with AAS finishes and a lower limit of detection of 0.01 ppm Au. No topcut is applied. Coordinates are MGA94-Z50. * Denotes wider bulked grade over mineralised zone. True widths are currently undefined.
| Hole ID | Easting | Northing | RL | Az/Dip | F/Depth(m) | From(m) | To(m) | Interval(m) | g/t Au |
|---|---|---|---|---|---|---|---|---|---|
| GPRC109 | 662192.5 | 6537033.4 | 339.8 | 233/-56 | 400 | 0 | 187 | pending | |
| 198 | 202 | 4 | 0.67 | ||||||
| 245 | 247 | 2 | 9.24 | ||||||
| 275 | 276 | 1 | 90.7 | ||||||
| 285 | 286 | 1 | 2.37 | ||||||
| 335 | 336 | 1 | 1.28 | ||||||
| GPRC110 | 662252.1 | 6536902.0 | 339.7 | 204.9/-71 | 300 | 169 | 171 | 2 | 8.12 |
| 175 | 178 | 3 | 0.88 | ||||||
| 203 | 204 | 1 | 3.31 | ||||||
| 234 | 236 | 2 | 2.99 |
Attachment 5: Golden Point RC Drilling Results – Edna May, WA
| 251 | 253 | 2 | 1.28 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| GPRC111 | 662179.9 | 6536753.8 | 341.5 | 205.8/-65 | 150 | 27 | 32 | 5 | 2.51 |
| 35 | 40 | 5 | 0.75 | ||||||
| 127 | 129 | 2 | 0.68 | ||||||
| 133 | 138 | 5 | 1.78 | ||||||
Notes
Reported significant gold assay intersections (using a 0.50 g/t Au lower cut) are reported using +2m downhole intervals at plus 0.5g/t Au, with up to 2m internal dilution. Gold determination was by Fire Assay using a 50gm charge with AAS finishes and a lower limit of detection of 0.01 ppm Au. No topcut is applied. Coordinates are MGA94-Z50. * Denotes wider bulked grade over mineralised zone. True widths are currently undefined.
Attachment 6: Penny Deeps Diamond Drilling Results – Penny, WA
| Hole ID | Easting | Northing | RL | Az/Dip | F/Depth(m) | From(m) | To(m) | Interval(m) | g/t Au |
|---|---|---|---|---|---|---|---|---|---|
| RPWDD0010 | 676971 | 6806703 | 490 | 270/-59 | 150 | NSR | |||
| RPWDD0011 | 676965 | 6806703 | 491 | 266/-54 | 696.3 | 315 | 316 | 1 | 2.86 |
| 386 | 387.05 | 1.05 | 0.82 | ||||||
| RPWDD0012 | 677201 | 6807095 | 486 | 271/-55 | 155 | NSR | |||
| RPWDD0013 | 677196 | 6807095 | 486 | 270/-64 | 892.1 | 570 | 571.42 | 1.42 | 0.74 |
| 595 | 596 | 1 | 0.66 | ||||||
| RPWDD0014 | 677017 | 6807503 | 485 | 271/-58 | 802.2 | NSR | |||
| RPWDD0015 | 676830 | 6807954 | 486 | 271/-57 | 856.2 | NSR | |||
| RPWDD0010 | 676971 | 6806703 | 490 | 270/-59 | 150 | NSR | |||
| Notes |
Reported significant gold assay intersections (using a 0.50 g/t Au lower cut) are reported using +2m downhole intervals at plus 0.5g/t Au, with up to 2m internal dilution. Gold determination was by Fire Assay using a 50gm charge with AAS finishes and a lower limit of detection of 0.01 ppm Au. No topcut is applied. Coordinates are MGA94-Z50. * Denotes wider bulked grade over mineralised zone. True widths are currently undefined.
JORC Table 1 Report for the Surface Aircore, RC and Diamond Drilling
Section 1 Sampling Techniques and Data
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Samplingtechniques | •Nature and quality of sampling (egcutchannels, random chips, or specificspecialised industry standardmeasurement tools appropriate to theminerals under investigation, such asdown hole gamma sondes, or handheldXRF instruments, etc). These examplesshould not be taken as limiting the broadmeaning of sampling.•Include reference to measures taken toensure sample representivity and theappropriate calibration of anymeasurement tools or systems used.•Aspects of the determination ofmineralisation that are Material to thePublic Report.•In cases where 'industry standard' workhas been done this would be relativelysimple (eg 'reverse circulation drilling wasused to obtain 1 m samples from which 3kg was pulverised to produce a 30 gcharge for fire assay'). In other cases moreexplanationmay be required, such aswhere there is coarse gold that hasinherent sampling problems. Unusualcommodities or mineralisation types (egsubmarine nodules) may warrantdisclosure of detailed information. | •At all projects potential gold mineralised RCandDiamondintervals are systematically sampled usingindustry standard 1m intervals, collected from reversecirculation (RC) drill holes and/or 4m compositesfrom reconnaissance Aircore traverses. Surface andunderground Diamond holes may be sampled alongsub 1m geological contacts, otherwise 1m intervalsare the default.•Drill hole locations were designed to allow for spatialspread across the interpreted mineralised zone. AllRC samples were collected and cone-split to 3-4kgsamples on 1m metre intervals. Aircore samples arespeared from 1m interval piles on the groundor from1m interval bagsand are composited into 4mintervals before despatching to the laboratory. Singlemetre bottom of hole Aircore samples are alsocollected for trace element determinations. Diamondcore is half cut along downhole orientation lines, withthe exception of underground diamond drilling. Herewhole core is despatched to the laboratory tomaximise the sample size. Otherwise half core issent to the laboratory for analysis and the other halfis retained for future reference.•Standard fire assaying was employed using a 50gmcharge with an AAS finish for all diamond, RC andAircore chip samples. Trace element determinationwas undertaken using a multi (4) acid digest and ICPAES finish. |
| Drillingtechniques | •Drill type (egcore, reverse circulation,open-hole hammer, rotary air blast, auger,Bangka, sonic, etc) and details (eg corediameter, triple or standard tube, depth ofdiamond tails, face-sampling bit or othertype, whether core is oriented and if so, bywhat method, etc). | •Drilling was completed using best practice NQdiamond core, 5 ¾" face sampling RC drillinghammers for all RC drill holes or 4½" Aircore bits/RChammers unless otherwise stated. |
| Drill samplerecovery | •Method of recording and assessing coreand chip sample recoveries and resultsassessed.•Measures taken to maximise samplerecovery and ensure representative natureof the samples.•Whether a relationship exists betweensample recovery and grade and whethersample bias may have occurred due topreferential loss/gain of fine/coarsematerial. | •All diamond core is jigsawed to ensure any core loss,if present is fully accounted for. Bulk RC and Aircoredrill holes samples were visually inspected by thesupervising geologist to ensure adequate cleansamplerecoveries were achieved. Note Aircoredrilling while clean is not used in any resourceestimation work. Any wet, contaminated or poorsample returns are flagged and recorded in thedatabase to ensure no sampling bias is introduced.•Zones of poor sample return both in RC and Aircoreare recorded in the database and cross checkedonce assay results are received from the laboratoryto ensure no misrepresentation of sampling intervalshas occurred. Of note, excellent RC drill recovery is |
| reported from allRC holes. Reasonable recovery isnoted for all Aircore samples. Zero sample recoveryis achieved while navi drilling. The navi lengths arekept to a minimum and avoided when close topotentially mineralised units. | ||
|---|---|---|
| Logging | •Whether core and chip sampleshave beengeologically and geotechnically logged to alevel of detail to support appropriateMineral Resource estimation, miningstudies and metallurgical studies. | •All drill samples are geologically logged on site byprofessional geologists. Details on the hostlithologies, deformation, dominant minerals includingsulphide species and alteration minerals plus veiningare recorded relationally (separately) so the logging |
| •Whether logging is qualitative orquantitative in nature. Core (or costean,channel, etc) photography.•The total length and percentage of the | is interactive and not biased to lithology.•Drill hole logging is qualitative on visual recordings ofrock forming minerals and quantitative on estimatesof mineral abundance. | |
| relevant intersections logged. | •The entire length of each drill hole is geologicallylogged. | |
| Sub-samplingtechniques andsamplepreparation | •If core, whether cut or sawn and whetherquarter, half or all core taken.•If non-core, whether riffled, tube sampled,rotary split, etc and whether sampled wetor dry.•For all sample types, the nature, qualityand appropriateness of the samplepreparation technique.•Quality control procedures adopted for allsub-sampling stages to maximiserepresentivity of samples.•Measures taken to ensure that thesampling is representative of the in situmaterial collected, including for instanceresults for field duplicate/second-halfsampling.•Whether sample sizes are appropriate tothe grain size of the material beingsampled. | •Duplicate samplesare collected every 20th samplefrom the RC and Aircore chips as well as quarter corefrom the diamond holes.•Dry RC 1m samples are riffle split to 3-4kg as drilledand dispatched to the laboratory. Any wet samplesare recorded in the database as such and allowed todry before splitting and dispatching to the laboratory.•All core, RC and Aircore chips are pulverized prior tosplitting in the laboratory to ensure homogenoussamples with 85% passing 75um. 200gm is extractedby spatula that is used for the 50gm or 30 gm chargeon standard fire assays.•All samples submitted to the laboratory are sortedand reconciled against the submission documents.In addition to duplicates,a selection of appropriatehigh grade or low grade standardsand controlledblanks areincluded every 20th sample. Thelaboratory uses barren flushes to clean theirpulveriser and their owninternal standards andduplicates to ensure industry best practice qualitycontrol is maintained.•The sample size is considered appropriate for thetype, style, thickness and consistency of |
| Quality of | •The nature, quality and appropriateness of | mineralization.•The fire assay method is designed to measure the |
| assay data andlaboratory tests | the assaying and laboratory proceduresused and whether the technique isconsidered partial or total.•For geophysical tools, spectrometers,handheld XRF instruments, etc, the | total gold in the diamond core, RC and Aircoresamples. The technique involves standard fireassays using a 50gm or 30gm sample charge with alead flux (decomposed in the furnace). The prill istotally digested by HCl and HNO3 acids before |
| parameters used in determining theanalysisincluding instrument make andmodel, reading times, calibrations factorsapplied and their derivation, etc.•Nature of quality control proceduresadopted (eg standards, blanks, duplicates,external laboratory checks) and whetheracceptable levels of accuracy (ie lack ofbias) and precision have been established. | measurement of the gold determination by AAS.Aqua regia digest is considered adequate for surfacesoil sampling.•No field analyses of gold grades are completed.Quantitative analysis of the gold content and traceelements is undertaken in a controlled laboratoryenvironment.•Industry best practice is employed with the inclusionof duplicates and standards as discussed above and |
| used by Ramelius as well as the laboratory. AllRamelius standards and blanks are interrogated toensure they lie within acceptable tolerances.Additionally, sample size, grind size and fieldduplicates are examined to ensure no bias to goldgrades exists. | ||
|---|---|---|
| Verification ofsampling andassaying | •The verification of significant intersectionsby either independent or alternativecompany personnel.•The use of twinned holes.•Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.•Discuss any adjustment to assay data. | •Alternative Ramelius personnel have inspected thediamond core, RC and Aircore chips in the field toverify the correlation of mineralised zones betweenassay results and lithology, alteration andmineralization.•All holes are digitally logged in the field and allprimary data is forwarded to Ramelius' DatabaseAdministrator (DBA) in Perth where it is imported intoDatashed, a commercially available and industryaccepted database software package. Assay data iselectronically merged when received from thelaboratory. The responsible project geologist reviewsthe data in the database to ensure that it is correctand has merged properly and that all the drill datacollected in the field has been captured and enteredinto the database correctly.•The responsible geologist makes the DBA aware ofany errors and/or omissions to the database and thecorrections (if required) are corrected in the databaseimmediately.•No adjustments or calibrations are made to any of theassay data recorded in the database. |
| Location ofdata points | •Accuracy and quality of surveys used tolocate drill holes (collar and down-holesurveys), trenches, mine workings andother locations used in Mineral Resourceestimation.•Specification of the grid system used.•Quality and adequacy of topographiccontrol. | •All drill hole collars are picked up using accurateDGPS or mine survey control. All down hole surveysare collected using downhole Eastman single shot orgyro surveying techniques provided by the drillingcontractors.•All Mt Magnet, Mardaand Edna May holes arepicked up in MGA94 –Zone 50 grid coordinates.Vivien underground drilling is MGA94 -Zone 51.•DGPS RL measurements captured the collar surveysofthe drill holes prior to the resource estimation work. |
| Data spacingand distribution | •Data spacing for reporting of ExplorationResults.•Whether the data spacingand distributionis sufficient to establish the degree ofgeological and grade continuityappropriate for the Mineral Resource andOre Reserve estimation procedure(s) andclassifications applied.•Whether sample compositing has beenapplied. | •RC drill spacing varies depending on stage of theprospect –infill and step out (extensional)programmes are planned on nominal 20m to 40mcentres. Good continuity has been achieved from theRC drilling.•Given the previous limited understanding of the targethorizons infill drilling (whether diamond or RC) isnecessary to help define the continuity ofmineralisation.•No sampling compositing has been applied within keymineralised intervals. |
| Orientation ofdata in relation | •Whether the orientation of samplingachieves unbiased sampling of possiblestructures and the extent to which this is | •The core drilling and RC drilling is completedorthogonal to the interpreted strike of the targethorizon(s), plunge projection of higher grade shoots, |
| to geologicalstructure | known, considering the deposit type.•If the relationship between the drillingorientation and the orientation of keymineralised structures is considered tohave introduced a sampling bias, thisshould be assessed and reported ifmaterial. | with the exception of Eridanus. Here the drilling isgenerally parallel to the strike of the EridanusGranodiorite but orthogonal to predicted cross cuttinglodes. Multiple other directions have also beentested. |
|---|---|---|
| Samplesecurity | •The measures taken to ensure samplesecurity. | •Sample security is integral to Ramelius' samplingprocedures. All bagged samples are delivereddirectly from the field to the assay laboratory in Perth,whereupon the laboratory checks the physicallyreceived samples against Ramelius' samplesubmission/dispatch notes. |
| Audits orreviews | •The results of any audits or reviews ofsampling techniques and data. | •Sampling techniques and procedures are reviewedprior to the commencement of new work programmesto ensure adequate procedures are in place tomaximize the sample collection and sample qualityon new projects. No external audits have beencompleted to date. |
Section 2 Reporting of Exploration Results
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineraltenement andland tenurestatus | •Type, reference name/number, location andownership including agreements or materialissues with third parties such as jointventures, partnerships, overriding royalties,native title interests, historical sites,wilderness or national park andenvironmental settings.•The security of the tenure held at the timeof reporting along with any knownimpediments to obtaining a licence tooperate in the area. | •The results reported are located on granted MiningLeases at Mount Magnet,Edna May, Marda andTampia gold mines or Exploration Licences atWestonia,Holleton-Mt Hampton regionsall in WesternAustralia (owned 100% by Ramelius ResourcesLimited'sor its 100% owned subsidiaries).In someinstancesprojects are in JV with other parties withRamelius earning equity. The Mt Magnet and Mardatenements are located on pastoral/grazing leasesorvacant crown land. The broader Westonia, HolletonMt Hampton and Tampiaareas are located overprivate farm land where the veto on the top 30m hasbeen removed via executed compensationagreement(s) with the various landowners. Edna Mayis within the Westonia Common,while the HolletonMining Centre is situated with the Holleton Timber andMining Reserve which requires ground disturbanceconsultation with the Department of Lands, Planning &Heritage. Heritage surveys are completed prior to anyground disturbing activities in accordance withRamelius' responsibilities under the AboriginalHeritage Act in Australia.•Currently all the tenements are in good standing.There are no known impediments to obtaining licencesto operate in all areas. |
| Explorationdone by otherparties | •Acknowledgment and appraisal ofexploration by other parties. | •Exploration and mining by other parties has beenreviewed and is used as a guide to Ramelius'exploration activities. Previous parties havecompleted shallow RAB, Aircore drilling and RCdrilling and shallow open pit mining has previouslyoccurred at Mt Magnet, Marda and Edna May. This |
| report concerns exploration results generated byRamelius for the current reporting period,notpreviously reported to the ASX. | ||
|---|---|---|
| Geology | •Deposit type, geological setting and style ofmineralisation. | •The targeted mineralisation at all projectsis typical oforogenic structurally controlled Archaean gold lodesystems. Mineralisation occurs in a variety of hostrocks, with strong structural controls. |
| Drill holeInformation | •A summary of all information material to theunderstanding of the exploration resultsincluding a tabulation of the followinginformation for all Material drill holes:oeasting and northing of the drill hole collaroelevation or RL (Reduced Level –elevationabove sea level in metres) of the drill holecollarodip and azimuth of the holeodown hole length and interception depthohole length.•If the exclusion of this information isjustified on the basis that the information isnot Material and this exclusion does notdetract from the understanding of thereport, the Competent Person shouldclearly explain why this is the case. | •All the drill holes reported in this report have thefollowing parameters applied. All drill holescompleted, including holes with no significant results(as defined in the Attachments) are reported in thisannouncement.•Easting and northing are given in MGA94 coordinatesas defined in the Attachments.•RL is AHD•Dip is the inclination of the hole from the horizontal.Azimuth is reported in magnetic degrees as thedirection the hole is drilled. MGA94 and magneticdegrees vary by <10 in the project area. All reportedazimuths are corrected for magnetic declinations.•Down hole length is the distancemeasured along thedrill hole trace. Intersection length is the thickness ofan anomalous gold intersection measured along thedrill hole trace.•Hole length is the distance from the surface to the endof the hole measured along the drill hole trace.•No results currently available from the explorationdrilling are excluded from this report. Gold gradeintersections >0.4 g/t Au within 4m Aircore compositesor >0.5 g/t Au within single metre RC samples(generally using a maximum of 2m of internal dilutionbut additional dilution where specifically indicated) areconsidered significant in the broader mineralised hostrocks. Diamond core samples are generally cut alonggeological contacts or up to 1m maximum.•Gold grades greater than 0.5 g/t Au are highlightedwhere good continuity of higher grade mineralisation isobserved. A 0.1 g/t Au cut-off grade is used forreconnaissance exploration programmes. |
| Dataaggregationmethods | •In reporting Exploration Results, weightingaveraging techniques, maximum and/orminimum grade truncations (eg cutting ofhigh grades) and cut-off grades are usuallyMaterial and should be stated.•Where aggregate intercepts incorporateshort lengths of high grade results andlonger lengths of low grade results, theprocedure used for such aggregationshould be stated and some typicalexamples of such aggregations should beshown in detail.•The assumptions used for any reporting ofmetal equivalent values should be clearlystated. | •The first gold assay result received from each samplereported by the laboratory is tabled in the list ofsignificant assays. Subsequent repeat analyses whenperformed by the laboratory are checked against theoriginal to ensure repeatability of the assay results.•Weighted average techniques are applied todetermine the grade of the anomalous interval whengeological intervals less than 1m have been sampled.•Exploration drilling results are generally reported usinga 0.5 g/t Au lower cut-off for RC and diamond or 0.1g/t Au for Aircore drilling (as described above andreported in the Attachments) and may include up to4m of internal dilution or more where specificallyindicated. Significant resource development drill holeassays are reported greater than 0.5 or 8.0 g/t Au andare also reported separately. For example, the |
| broader plus 1.0 g/t Au intersection of 6.5m @ 30.5 g/tAu contains a higher-grade zone running plus 8 g/t Auand is included as 4m @ 48.5 g/t Au. Whereextremely high gold intersections are encountered asin this example, the highest-grade sample interval (eg1.0m @ 150 g/t Au) is also reported. All assay resultsare reported to 3 significant figures in line with theanalytical precision of the laboratory techniquesemployed.•No metal equivalent reporting is used or applied. | ||
|---|---|---|
| Relationshipbetweenmineralisationwidths andintercept lengths | •These relationships are particularlyimportant in the reporting of ExplorationResults.•If the geometry of the mineralisation withrespect to the drill hole angle is known, itsnature should be reported.•If it is not known and only the down holelengths are reported, there should be aclear statement to this effect (eg 'down holelength, true width not known'). | •The intersection length is measured down the lengthof the hole and is not usually thetrue width. Whensufficient knowledge on the thickness of theintersection is known an estimate of the true thicknessis provided in the Attachments.•The known geometry of the mineralisation with respectto drill holes reported for advanced projects isgenerallywell constrained. |
| Diagrams | •Appropriate maps and sections (withscales) and tabulations of intercepts shouldbe included for any significant discoverybeing reported These should include, butnot be limited to a plan view of drill holecollar locations and appropriate sectionalviews. | •Detailed drill hole plans and sectional views ofadvanced prospects at Mt Magnet, Edna May, Tampiaand Marda are provided or have been providedpreviously. Longsection andcross-sectional views(orthogonal to the plunging shoots) areconsidered thebest 2-D representation of the known spatial extent ofthe mineralisation. |
| Balancedreporting | •Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both low andhigh grades and/or widths should bepracticed to avoid misleading reporting ofExploration Results. | •Available results of all drill holes completed for thereporting period are included in this report,and allmaterial intersections (as definedabove) are reported. |
| Othersubstantiveexploration data | •Other exploration data, if meaningful andmaterial, should be reported including (butnot limited to): geological observations;geophysical survey results; geochemicalsurvey results; bulk samples –size andmethod of treatment; metallurgical testresults; bulk density, groundwater,geotechnical and rock characteristics;potential deleterious or contaminatingsubstances. | •No other exploration data that has been collected isconsidered meaningful and material tothis report. |
| Further work | •The nature and scale of planned furtherwork (eg tests for lateral extensions ordepth extensions or large-scale step-outdrilling).•Diagrams clearly highlighting the areas ofpossible extensions, including the maingeological interpretations and future drillingareas, provided this information is notcommercially sensitive. | •Future exploration may include infill and step out RCand diamond drilling where justified to define the fullextent of the mineralisation discovered to date. |