https://www.engineeringnews.co.za

Ramelius goes underground at Edna May

Edna May is currently an openpit operations but will go underground early next year.

Edna May is currently an openpit operations but will go underground early next year.

18th September 2018

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

Font size: - +

Gold miner Ramelius Resources has opted for underground operations at Edna May, rather than developing a large Stage 3 openpit cutback at the Western Australia-based operation.

Starting in early 2019, the company will start underground mining and ore production is expected from the start of the 2020 financial year, with an initial life of two-and-a-half years.

Announcing a development decision, Ramelius MD Mark Zeptner said on Tuesday that the decision to move underground at Edna May was not taken lightly. “After extensive studies and considering our future operations around other potential ore sources in the area, we believe this is a prudent decision that will lead to exceptional future outcomes for our shareholders.”

An underground mine will realise substantial savings on capital expenditure. Prior to the acquisition of Edna May by Ramelius, Evolution Mining spent about A$20-million on a mine portal inside the current openpit, plus some 250 m of vertical development. The September 2018 prefeasibility study (PFS) for underground development estimates upfront capital of A$5.9-million for the underground mine.

This compares with a large pit cutback that could cost about A$100-million.

“The considerable savings in group capital expenditure and the use of conservative geological assumptions gives the company added flexibility in considering other future strategic options for Ramelius,” Zeptner added.

The PFS estimates that 64 417 oz will be mined and 57 783 oz will be recovered during the underground operation’s 2.5 year mine life.

The Edna May mineral resource is below the current Stage 2 openpit, down to a depth of 450 m below the surface, where it remains open. Diamond drilling is planned to be carried out in the next financial year to extend the underground resources to depths of between 600 m and 700 m.

The Marda gold project acquisition of last week would allow additional ore for flexibility, Ramelius noted.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Axiom Hydraulics
Axiom Hydraulics

Axiom Hydraulics is a trusted leader in South Africa’s hydraulic industry, delivering world-class components, systems, and engineering expertise...

VISIT SHOWROOM 
MBE Minerals SA (Pty) Ltd
MBE Minerals SA (Pty) Ltd

Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.054 1.106s - 140pq - 2rq
Subscribe Now