Mt Magnet Plant Expansion Critical as Ramelius Targets Top 5 Australian Gold Producer Spot

A Milestone for Never Never

Ramelius Resources Limited (ASX, RMS) has delivered a significant update with the release of its Never Never Pre-Feasibility Study (PFS) and the Mt Magnet-Dalgaranga Integration Study. The highlight is the maiden ore reserve at the Never Never underground deposit, estimated at 7 million tonnes grading 7.3 grams per tonne gold, equating to 1.6 million ounces. This reserve forms the backbone of a mine plan projecting 1.9 million ounces of gold production over an 11-year life, at an all-in sustaining cost (AISC) of A$1,128 per ounce.

The Never Never deposit, located within the Dalgaranga Gold Project in Western Australia’s Murchison region, has been rigorously evaluated with extensive drilling, geological modelling, and metallurgical testwork. The deposit’s mineralisation is structurally controlled with high-grade zones, and the PFS confirms the technical and economic viability of underground mining using longhole open stoping with cemented paste fill.

Processing Plant Expansion and Integration

Central to Ramelius’ strategy is the expansion of the Mt Magnet processing plant to a capacity of 5 million tonnes per annum (Mtpa). The integration study favours a single expanded Mt Magnet plant over maintaining two separate facilities at Mt Magnet and Dalgaranga. This expanded plant will feature two comminution circuits tailored to optimise grind sizes for different ore types, a refurbished circuit processing Dalgaranga ores at a finer grind size of 53 microns, and a new circuit handling Mt Magnet ores at the existing 175 micron grind.

This approach promises operational synergies, economies of scale, and lower capital and operating costs. The capital expenditure for the plant expansion is estimated at A$223 million, with additional costs for mine development and infrastructure upgrades. The expanded plant is expected to be operational by the September 2027 quarter, with renewable energy enhancements including wind turbines and solar arrays to reduce power costs and environmental impact.

Robust Financial Metrics and Strategic Outlook

Financially, the project shows strong metrics with an undiscounted after-tax cash flow of A$4.6 billion and a net present value (NPV) at a 5% discount rate of A$3.5 billion, based on a conservative gold price of A$4,500 per ounce. Sensitivity analysis indicates significant upside with higher gold prices. The mine plan’s 11-year life and production profile position Ramelius to become a top-five Australian gold producer by fiscal year 2030.

Managing Director Mark Zeptner emphasised the strategic importance of the Never Never PFS and integration study, noting that the results validate Ramelius’ vision to grow through acquisitions and operational excellence. He highlighted the potential for exploration upside beyond the current reserve and resource base, underscoring the project’s long-term value.

Technical Confidence and Environmental Stewardship

The PFS incorporates detailed geological modelling, geotechnical assessments, and metallurgical testwork, providing confidence in the mining method and processing parameters. The ore exhibits favourable characteristics including low reagent consumption and absence of deleterious elements. The project benefits from existing infrastructure and granted mining approvals, with ongoing enhancements to ventilation, dewatering, and paste fill facilities.

Environmental considerations are well managed, with the Dalgaranga project operating under current permits and proactive planning for tailings storage and water supply. The integration of renewable energy sources aligns with Ramelius’ commitment to sustainable mining practices.

Broader Resource and Reserve Update

Alongside the Never Never update, Ramelius reported an updated mineral resource of 7.5 million tonnes at 8.8 grams per tonne gold for 2.1 million ounces inclusive of the Pepper deposit. The company’s total ore reserve across the Mt Magnet hub now stands at approximately 4.2 million ounces, supporting a diversified production base. Additional scoping studies on nearby deposits such as Gilbeys and Rebecca-Roe indicate further growth potential.