Ramelius Resources : Mt Magnet and Edna May study updates

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use	28 February 2022
personal	Richard Jones
	ISSUED CAPITAL
	Ordinary Shares: 867M
	DIRECTORS
	NON-EXECUTIVECHAIR:
	Bob Vassie
	MANAGING DIRECTOR:
	Mark Zeptner
	NON-EXECUTIVEDIRECTORS:
	Michael Bohm
	David Southam
	Natalia Streltsova
	Fiona Murdoch
For	COMPANY SECRETARY:

www. ameliusresources.com.au [e-mail]

RAMELIUS RESOURCES LIMITED

Registered Office

Level 1, 130 Royal Street

East Perth, WA 6004

Tel [phone]

PO Box 6070

East Perth, WA 6892

28 February 2022

MINING STUDY UPDATES - MT MAGNET & EDNA MAY

HIGHLIGHTS

Mt Magnet

• Galaxy Underground Pre-Feasibility Study & Approval to Commence o Study based on Mineral Resource1 of 8.5Mt at 2.1g/t for 560koz o Maiden Ore Reserve2 of 2.4Mt at 2.6g/t for 200koz
  o Mine life of 5.5 years
  o Estimated Capital cost of A$60M and AISC of A$1,708/oz o Board approved for commencement March 2022
  o Ability to leverage of existing processing plant and mine infrastructure
  o Potential extensions given excellent depth continuity typically seen in the area
• Hill 50 Underground Desktop Study

1. Current Mineral Resource1 of 1.6Mt at 6.6g/t for 340koz

1. Desktop Study results positive based on current assumptions

• 1. Top section (to 400mbs) of decline will be rehabilitated by Galaxy Underground
  1. Progress to Scoping Study with target completion by July 2022
• Morning Star Underground Desktop Study
• 1. Current Mineral Resource1 of 0.5Mt @ 4.7g/t for 79koz

1. Desktop Study results shows insufficient resources to generate an acceptable return at this time

1. Open Pit cutback remains in the Mine Plan*

Edna May

• Edna May Stage 3 Open Pit Pre-Feasibility Study

1. Planned drilling completed at the Golden Point area

1. Updated resource model and Minerals Resources for entire project

1. Golden Point Mineral Resource3 of 2.5Mt at 0.9g/t Au for 71koz (up 13%) o High Grade Lode Mineral Resource3 of 330kt at 5.4g/t Au for 57koz
   o Total Edna May Mineral Resource3 of 31Mt at 1.0g/t Au for 990koz

1. Contract mining rates highly variable in current COVID-19 environment, to be reviewed mid-2022

1. Underground mining now below Stage 3 open pit design base and therefore accurate depletion of the open pit can be included

1. Completion of Pre-Feasibility Study targeted by July 2022

Mine Plan implications

The Galaxy Underground and the Edna May Stage 3 Open Pit both included in the August 2021 Mine Plan*. Galaxy Underground brought forward from FY24 to late FY22 commencement. Hill 50 and Morning Star Undergrounds not included.

1. See RMS ASX Release "Mineral Resource & Ore Reserve Statement", 10 September 2021
2. See page 4
3. See page 11

• See RMS ASX Release "Ramelius Mine Plan Increases 27% to 1.84Moz", 2 August 2021

For personal use only

MINE STUDIES / MINE EXTENSIONS

Ramelius Resources Limited (ASX:RMS) ("Ramelius", "the Company") is pleased to provide an update on ongoing mining studies at both the Mt Magnet and Edna May production centres, within its portfolio of projects in Western Australia.

Galaxy Underground (Mt Magnet, WA) - Pre-Feasibility Study Results & Approval to Commence

The Galaxy Underground (primarily Saturn and Mars deposits) project to convert existing resources into reserves has progressed to the completion of a Pre-Feasibility Study (PFS). Access to the mineral resources has allowed the mining study and the associated project start date to be brought forward, as opposed to waiting for completion of the Stage 2 open pit at Eridanus. The opportunity to establish another underground mining centre at Mt Magnet, at a moderate capital cost, has been recognised by the mine planning team and whilst it was included in the 2021 Mine Plan from the start of FY24, the project has been approved for commencement in late FY22.

Since the 2021 Scoping Study:

• a detailed geotechnical assessment has been completed;
• the mine design has been refined and scheduled in detail;
• contractor rates based on the mine plan have been updated; and
• all external permits required for commencement obtained.

Geology & Mineralisation

Mineralisation is principally hosted within Banded Iron Formations (BIF) where gold is spatially associated with northeast trending faults and associated with pyrrhotite and pyrite mineralisation. BIF units occur within a mafic and ultramafic stratigraphy with felsic sill and cross-cutting intrusives occurring. Stratigraphy is sub-vertical and BIF units largely have deep vertical continuity.

Mineral Resource

Galaxy Mineral Resources are based on a number of models generated between 2012 and 2020 and reported as the Galaxy Group (open pit) and Saturn Underground Mineral Resources. Significant drilling and mining activity has been conducted by Ramelius in this period and major pit cutbacks occurred on the Saturn, Mars, Perseverance, Titan and Vegas open pits.

Recent surface diamond drillholes targeting the Saturn and Mars deposits were carried out for general infill and to provide core for geotechnical assessments. Results from these drillholes included:

• 40.3m at 1.71g/t, from 465.9m in RDDD0013 (Saturn)
• 9.4m at 3.49g/t, from 444m in RDDD0014 (Saturn)
• 30m at 1.79g/t, from 279m in RDDD0016 (Mars)
• 11m at 2.15g/t, from 459m in RDDD0017 (Mars)

For resource modelling the geology has been interpreted first and formed the basis of a separate interpretation of mineralisation envelopes. Multiple domains were generated to reflect geological host, mineralisation style or local spatial trends and hard bound assay information at a nominal 0.2 - 0.5 g/t cut-off. Estimation was carried out by anisotropic Ordinary Kriging or ID methods using 1m composited assay data in parent cells only. Top-cuts were applied by domain determined by review of population stats. All resources were compared to previous versions or recent production. The latest Mineral Resource is quoted below in Table 1.

Table 1: Galaxy Underground Mineral Resource - Aug 2021 (>0.7g/t)

Deposit

Indicated

Inferred

Total Resource

t

g/t

oz

t

g/t

oz

t

g/t

oz

Galaxy UG

7,000,000

2.1

470,000

1,500,000

2.0

93,000

8,500,000

2.1

560,000

Figures rounded to 2 significant figures. Rounding errors may occur.

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Geotechnical Assessment

The PFS mine design and sequence has been assessed following onsite geotechnical logging of core drilled late in 2021. This work has highlighted a lower quality ultramafic unit to the east of Saturn and Mars. A review of ground conditions encountered during the lower phases of open pit mining, directly above the proposed underground, supports the need for a more conservative approach with a bottom-up approach replacing the previous top-down assumption and access infrastructure being relocated to the east of orebodies.

Dewatering

The historic workings of the Hill 50 underground mine are interconnected with the Mars underground workings down to 150mRL (natural surface is approximately 450mRL). The Perseverance pit also connects to the Hill 50 underground workings because the crown pillar has been removed. Similarly, the Mars pit intersects underground voids.

A historic surface shaft (3 Boys) situated to the north of Hill 50 that is interconnected at depth has been used with a borehole pump to reduce the Galaxy water level to the maximum accessible limit of 280mRL. In December 2021, a borehole has been drilled from the eastern side of Perseverance pit down to intersect the Hill 50 workings at the 210mRL. The hole will shortly be equipped with a borehole pump thus allowing dewatering well ahead of development activities.

Mine Design

The main decline is nominally 5.5m wide by 5.5m high, with an arched profile and is mined at a gradient of 1:7 down. The exception to this is the upper part of the rehabilitated 1980s era Hill 50 decline which was mined at similar dimensions with a square profile and a 1:9 gradient. No stripping is anticipated to be required to accommodate modern 60t payload trucks in the rehabilitated decline.

All new decline development is designed with a stand-off distance of ≥ 30m from the ore zones. Level spacing 20m vertical floor to floor.

Dilution applied is reflective of competency of rock exposed and potential dilution from backfill if applicable.

Mining method will be downhole drilling and charging with remote loaders (large 17t payload units) bogging ore. Truck loading will be undertaken on the crosscut / decline intersection.

The underground schedule is based upon:

• Up to two jumbos developing at a maximum rate of 260m development advance per month each with higher rates of advance where existing development is being re-supported
• Long hole drill rig drilling 89mm holes and achieving a yield of 7.5t per drill metre
• Up to 5 x LHDs
• Up to 3 x 60t trucks

Figure 1: Isometric view of Galaxy Underground including historic Hill 50 workings

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Ore Reserves

A maiden Ore Reserve has been calculated for the project, as seen below in Table 2.

Table 2: Galaxy Underground Ore Reserve - Feb 2022

Deposit

Proven

Probable

Total Reserve

kt

g/t

koz

kt

g/t

koz

kt

g/t

koz

Galaxy UG

-

-

-

2,400

2.6

200

2,400

2.6

200

Figures rounded to 2 significant figures. Rounding errors may occur.

Metallurgy

Ore is planned to be processed through the Mt Magnet processing plant as part of an overall feed blend. Prior processing of the Saturn and Mars orebodies over a number of years has provided confidence in operational parameters and recoveries achieved. No capital modifications to the processing facility are required in order to process the ore. Existing tailings storage facilities will be utilised. The metallurgical modifying factors used for the Pre-Feasibility Study can be summarised as:

• Gold recovery: 92.7% (reduced from 94% used for Scoping Study after detailed review of historical data)
• Processing cost: A$21/t

Infrastructure

Considerable underground development is already in place at the Hill 50 underground, accessed from the Mars open pit, which will require re-supporting on the way down. The mine will be managed using existing mining offices and support services such as emergency services, and the mine infrastructure identified in the capital estimate includes:

• Power reticulation
• Ventilation fans
• Pumping stations and dewatering infrastructure
• Light vehicles and ancillary
• Open pit and portal preparation work

Pre-Feasibility Study Results#

Table 3: Galaxy (Saturn & Mars) Underground Scoping & Pre-Feasibility Study summaries

Parameter	Unit	Scoping Study	Pre-Feasibility Study
		(July 2021)	(February 2022)
General
Mining Method		Long Hole Open Stoping	Long Hole Open Stoping
		(top-down without backfill)	(bottom-up with backfill)
Start Date (decline rehabilitation)	Qtr	FY24	H2 FY22
Initial life	Yrs	6.0	5.5
Mining (underground)
Ore tonnes	Mt	3.0	2.5
Grade	g/t	1.9	2.6
Contained Gold	koz	190	209
Processing
Ore processed	Mt	3.0	2.5
Grade	g/t	1.9	2.6
Recovery	%	94	92.7
Gold Production	koz	179	194
Financial
Upfront Capital Cost	A$M	40	60
AISC	A$/oz	1,689	1,708

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#The Pre-Feasibility Study is a Production Target that contains a proportion of Inferred Mineral Resources (92kt @ 2.9g/t for 8,500oz). There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised.

Permitting & Approvals

The Galaxy open pits were previously mined by Ramelius from 2012 to 2018. All required statutory permits required to commence the project for the underground mine have been received.

The Ramelius Board has given approval for development to commence, which is expected to take place in March 2022.

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