Growing ASX gold miner Ramelius Resources will bring the financial heft to speed development of a new gold mine at Lake Rebecca, east of Kalgoorlie in Western Australia, if its proposed A$163 million acquisition of Apollo Consolidated is successful.
Ramelius, which produces more than 270,000 ounces a year from its two existing operational centres at Mount Magnet and Westonia in WA, said it had the “financial capacity and operational expertise” to continue expanding the [1.1-million-ounce] mineral resource and develop Rebecca”.
Rebecca is the 840,000oz current “jewel in the crown” at Lake Rebecca. Ramelius said Apollo’s recent Cleo discovery opened a new exploration front in mafic geology in the district – as distinct from the granite-hosted mineralisation at Rebecca and also the Duke and Duchess deposits. Ongoing infill drilling at Cleo, 1.5km from Rebecca, has reportedly intersected 38m grading 2 grams per tonne, 2m of 9.39gpt, 5m of 3.76gpt and 5m at 4.24gpt, ahead of a maiden resource estimate.
Ramelius said environmental, metallurgical and other technical studies were progressing in support of engineering and mine planning work that pointed towards “robust potential mining scenarios” for the 815,000oz indicated resource at Rebecca.
Ramelius had net cash of circa-A$234m on hand at the time of announcing its A56c-a-share cash and scrip bid for Apollo.
Directors and key shareholders of Apollo, also well-funded with more than A$36m in the bank at the end of June this year, apparently are supportive of the Ramelius offer.