44% INCREASE IN MINERAL RESOURCE AT MT MORGANS
Increased Mineral Resource at Mt Morgans to 869,140 ounces (oz) of gold (Au)
Updated Mineral Resource at Westralia/Millionaires delivers the 44% increase
Updated Mineral Resource underpins life of mine plan increase to 50,000 oz Au pa for six years from 2011/12
Emphasises the low cost, low risk and short lead time of Mineral Resource growth at Mt Morgans
Continuation of growth plan to produce 100,000 oz Au pa within five years
Tuesday 9 November 2010, Melbourne: Range River Gold Ltd (ASX:RNG) has increased Mineral Resources by 44% to 869,140 oz Au for its Mt Morgans operation located near Laverton, Western Australia. This brings the total increase since 30 June 2010 to 62% or 333,480 oz Au.
Managing Director, Rick Watsford commented:
The 44% increase to 869,140 oz Au in Mineral Resource for Mt Morgans continues the growth in Mineral Resources since 30 June 2010 to 62%.
The updated Mineral Resource underpins an increase in the average life of mine production profile to 50,000 oz Au pa for six years from 2011/12. That is an increase from an average of 40,000 oz Au pa for four years.
This is the first major step in delivering the growth plan to increase annual production to 100,000 oz Au pa within five years through extensional and brown field exploration.
The highly successful low cost and low risk mineral resource definition program Mt Morgans supports the acceleration and expansion of our production. The expansion of production requires capital, as supplied by our recent placement and SPP. We believe that realising the potential of Mt Morgans is a very appropriate way to provide shareholder value.
Further increases to Mineral Resources and Ore Reserves are expected from Mt Morgans as the Company continues its exploration program and moves toward increasing annual production to 100,000 oz Au pa.
The 44% increase in Mineral Resource emphasises the excellent exposure of Range to a rising gold price through re-evaluation, discovery and development of near mine extensional resources.
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