rms * wattle dam firms as first gold mine

http://www.minebox.com/story.asp?articleId=4512

Wattle Dam Firms as First Gold Mine for Ramelius

- 19 Jul 2004

Gold and nickel explorer, Ramelius Resources Ltd, has announced the company expects to develop a gold mine at its emerging Wattle Dam project in Western Australia, in the ‘short term’.

This follows new shallow high grade gold drill intersections from within wide lower grade zones during 1,900m of reverse circulation drilling to better define the inferred resource of 150,000 tonnes at 4.6 grams per tonne gold at Wattle Dam, 50km southeast of Coolgardie.

Ramelius managing director Joe Houldsworth said: "We are extremely happy with the success of the RC drilling program as it returned a number of spectacular gold grades along with many robust gold intersections.

"We are now looking at establishing a mining operation at Wattle Dam within the next six months or so - the company's first mine since listing in March last year.

"The anticipated mine would have a lead time of possibly six months with a further six months required to mine the resource. As Wattle Dam is also on a granted mining lease with Native Title Agreements in place, this will further minimise development lead times."

Houldsworth said that while spectacular high grades were exciting, the real significance of Wattle Dam was its relatively shallow depth of intersections.

“We set drilling records in respect of metres achieved on a daily basis during the latest Wattle Dam RC schedule, and this would seem to confirm our opinion that the nature of the ground, being weathered ultramafics, will probably be ‘free digging’ to 40-50m depth,” he said.

Best grades from the RC program included 1m at 130 grams per tonne gold from 7m depth, 2m at 47 grams per tonne from 17m and 9m at 8.3 grams per tonne from 12m.

Ramelius is now progressing a revised resource estimate for Wattle Dam and from this week will commence further drilling to test the project's northwestern and southern extensions "…as the mineralisation is currently open in these directions,” Houldsworth said.

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RMS @ 10 cents has risen 65% in the last two weeks, whereas RSMO has remained unchanged at $0.026 over that period.

The oppies have a strike price of 20 cents and are not due to expire until 31 Dec 07. Could be worth a punt.

Cheers,

Fig Jam

I don't hold RMS or RMSO at time of writing.