Ramelius pushes ahead with Penny

The decision to mine followed on from an updated feasibility study, which has increased the up-front capital cost estimates for Penny from the A$23.5-million previously estimated to A$34.5-million, while all-in sustaining costs have been reduced from A$703/oz to A$633/oz.

Gold production from Penny is expected to increase from the 230 000 oz previously estimated to 238 000 oz, over a mine life of 3.8 years, with the updated feasibility study estimating a pre-tax net present value of A$301-million, an internal rate of return of A$240-million and a pay-back period of 26 months.

Revenue for the project is expected to reach A$547-million with mine operating cash flows estimated at A$380-million.

Ramelius on Monday told shareholders that mining at Penny was expected to start late in the June quarter of 2021.

Meanwhile, the miner has also updated the mineral resource at its Edna May gold mine, also in Western Australia, with the mineral resource increasing by 22%, to 31-million tonnes, grading 1.1 g/t gold for one-million ounces.

Ramelius noted that infill and extensional diamond drilling had been completed at Edna May, resulting in the updated resource model with a larger mineral resource estimate.

The company is also continuing with both underground and openpit studies at Edna May, which are targeted for completion in the December quarter.