The Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) has approved Ramelius Resources’ mining proposal for the Cue gold project, paving the way for early works to commence in June.
The Cue project is located within the Murchison region of Western Australia and holds a total mineral resource of 12 million tonnes at 2.4 grams per tonne of gold for 910,000 ounces, with a metallurgical recovery of 92.7 per cent.
Cue’s open pit pre-feasibility study (PFS) results showed “robust financial returns” such as pre-tax net present value of $266 million at $3000 per ounce, an upfront capital cost of $26.6 million, and an all-in sustaining cost of $1585/oz.
“Its proximity to the existing Mount Magnet operation makes implementation and ramp up achievable well within 12 months of acquisition,” Ramelius said.
Ramelius said Cue’s open pit mining fleet will comprise one 200-tonne (t) excavator, two 120t excavators, up to ten 90t payload trucks, two dozers, one grader, two watercarts, and up to three production drill rigs.
With underground drilling recently completed at Cue, resource modelling and mine evaluation will soon be undertaken in hopes of enhancing the project. The underground mining evaluation is expected to be incorporated into the PFS in September.
“Our key operating mines continue to perform well, tracking at the higher end of guidance and in accordance with our recently released Mount Magnet 10-year plan,” Ramelius managing director Mark Zeptner said.
“The Cue project will deliver ore to the Mount Magnet hub in parallel with the Penny high grade ore. This high margin combination will deliver significant returns with our cash balance already exceeding $500 million. Additional underground potential still remains at both Cue and Penny.”
Mining is expected to commence at Cue in the first quarter of the 2025–26 financial year.
In other Ramelius news, the gold miner is eyeing a merger with Westgold Resources.
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