RECORD production at its Mt Magnet operation drove Ramelius Resources to exceed its December 2014 quarter production guidance by 13 per cent.

The company achieved total production for the period of 24,241 fine ounces of gold, up from guidance of between 19,450oz and 21,450oz of gold. Of this, the Mt Magnet operation in WA’s Murchison Goldfield produced 23,235oz, beating the expected output of between 19,000oz and 21,000oz of gold.

The Coogee/Burbanks operations also performed well above the expected 450oz of gold, producing 1006oz.

“This is the third quarter running that guidance has either been achieved or exceeded, with lower unit costs driving a substantial increase in our cash position even after accounting for exploration and corporate expenditure,” Ramelius chief executive Mark Zeptner said.

The company’s cash and gold on hand increased to $24.7 million in the quarter (up from $16.9 million in the September quarter), representing a 40 per cent increase in the six months to 31 December.

As a result of the record production, the company’s cash costs were expected to be significantly lower than in the September quarter. Further details would be released in the company’s full quarter report in late January.

Shares in Ramelius jumped more than 30 per cent following its record quarterly results.

In other positive news, drilling at the company’s Blackmans gold project, 30km north of Mt Magnet, returned encouraging results for mineralisation covering at least 350m of strike and open down dip.
“Following improved performance at the Mt Magnet gold operation in recent quarters, the potential of a new high grade open pit operation is significant for future processing at Mt Magnet,” Mr Zeptner said.

“Being located only 30 kilometres north of Mt Magnet means that any future mining operation at Blackmans can simply be run out of Mt Magnet and the gold ore processed at the existing Checkers processing facility.”