Shareholders in Ramelius Resources (RMS) have seen their holdings go from a 52-week high of 91c to 31.5c on Friday. Nevertheless, the company is persevering with attempts to keep output at its Mt Magnet operation above 100,000oz a year. Mining has now begun at the Western Queen South project 90km away where over 12 months it is intended to scrape out another 23,000oz.

This is part of the historic Western Queen deposit which was mined between 1926 and 1937 by Western Queen NL until the mine shaft collapsed and water inflows made mining impossible. The average grade was a handsome 17.23 grams/tonne. The former Western Mining Corp in 1990 thought about reopening the mine, estimating the resource to be 500,000 tonnes at 11g/t. But the gold price in the 1990s hardly encouraged thoughts of ploughing capital into brownfield projects.


----keen to BUY back in low 30's .....