Resolute Mining Limited (ASX: RSG) shares could get a boost today after announcing a major gold resource and reserve upgrade for Ravenswood.

Resolute has more than 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa and has produced more than 8 million ounces of gold.

Resolute Mining’s Major Upgrade

The gold company announced a major upgrade to its mineral resources and ore reserves at its Ravenswood Gold Mine in Queensland, Australia.

Ravenswood Ore Reserves have increased by 1 million ounces, or 58%, from 1.7 million ounces to 2.7 million ounces. Mineral Resources at Ravenswood have increased by 24% from 4.8 million ounces to 5.9 million ounces.

An updated Mineral Resource estimate has been prepared for Resolute’s combined Ravenswood deposits consisting of Buck Reef West, Nolans and Sarsfield, which are immediately adjacent to the Nolans Processing Plant within a radius of 1.5km. The updated Mineral Resources stands at 270 million tonnes at 0.7 grams per tonne for 5.9 million ounces of gold.

The upgrades to Resolute’s available gold inventory at Ravenswood are net of depletion at 30 June 2019.

Managing Director and CEO Mr John Welborn was encouraged by the increase of the company’s gold inventory at Ravenswood and the implications for larger scale production over a long mine life:

One million additional ounces of gold in Ore Reserves at Ravenswood is an excellent outcome from our recent drilling programs and study work. Available gold resources at Ravenswood now exceed five million ounces demonstrating its status as an outstanding Australian gold mine. 

With almost three million ounces of gold in Ore Reserves we are now directing our ongoing study work to focus an optimised REP that can produce around 200,000 ounces annually over a 15-year mine life. The expanded gold inventory demonstrates that Ravenswood presents a unique opportunity for transformation in a large scale, low cost operation with an exceptionally long mine life that will deliver considerable economic benefits,”

Is It A Buy?

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.