Gold miner Ramelius Resources (ASX: RMS) has pulled up a 7m intersection grading an impressive 1,271 grams per tonne gold while drilling at its Mount Magnet gold project in Western Australia.
Grade control drilling within the project’s Stella open pit has uncovered a possible high-grade ore shoot extending beyond the pit’s current design.
As a result, Ramelius sunk two exploratory reverse circulation holes to test the theory and returned 20m at 645g/t gold from 28m, including 7m at 1,271g/t gold from 29m.
The second hole unearthed 19m at 243g/t gold from 29m, with a 9m interval grading 530g/t gold from 30m.
Ramelius pointed out that true widths remain undetermined at this stage, with additional drilling planned to scope out the mineralisation’s full extent.
“The discovery of the bonanza intersections immediately beneath the Stella open pit, as Mount Magnet, is testament to ongoing potential for this operation to deliver extremely high-grade plunging ore shoots within and proximal to the known ore systems,” Ramelius managing director Mark Zeptner said.
“This reinforces our commitment to continual exploration at Mount Magnet in driving reserve replacement to ultimately grow the gold camp well beyond its 6 million ounces of production,” Mr Zeptner added.
Drilling below the planned Eridanus pit, also revealed mineralisation, with intersections of 5m at 3.42g/t gold, 17m at 2g/t gold and 33m at 1.29g/t gold.
Additionally, infill drilling at the nearby Lone Pine pit gave up 5m at 11.12g/t gold and 17m at 5.01g/t gold.
Meanwhile, reverse circulation drilling at the nearby Edna May project targeted the historic Felstead’s Find workings and returned 9m at 2.07g/t gold, 10m at 1.08g/t gold as well 12m at 1.52g/t gold.
Ramelius is currently mining at Mount Magnet, Edna May and Vivien. During 2018, Ramelius produced 208,118oz of gold, which generated $341.8 million in revenue and a net profit before tax of $45.5 million.
News of the spectacular gold intersections lifted Ramelius’ share price up 10% to $0.44 in late morning trade.