Ramelius Resources has delivered encouraging exploration results at its Dalgaranga gold project that could materially reshape the mine’s production profile and extend its operational life. The March Quarter drilling campaign at Gilbey’s Underground returned multiple high-grade intercepts, with the standout result being 3.9 metres at 21.2 grams per tonne of gold from 219 metres depth. These results strengthen the case for developing Gilbey’s Underground as a new mining operation alongside the existing Never Never Underground mine, potentially displacing lower-grade mill feed scheduled for fiscal years 2029 and 2030.
The strategic significance lies in Ramelius’s ability to upgrade its production profile during a critical period. The company had previously scheduled approximately 3.7 million tonnes of relatively low-grade ore between FY29 and FY30, averaging just 0.7 grams per tonne. By establishing Gilbey’s Underground, management believes it can replace this material with higher-grade ore, creating a pathway to exceed its stated group production target of 525,000 ounces per annum by FY30. For investors, this translates to potential upside surprise to guidance and improved returns on capital deployed in future mine development.
Gilbey’s Underground currently hosts 6.9 million tonnes of mineral resources grading 1.9 grams per tonne for 380,000 ounces. Beyond this defined resource, the company has identified an exploration target range of 2.1 to 4.7 million tonnes at 1.5 to 2.0 grams per tonne, potentially containing 100,000 to 300,000 additional ounces. While the company appropriately notes this target remains conceptual and unclassified, the breadth of the resource envelope suggests substantial untapped potential. Surface exploration at Plymouth and Sly Fox has also generated encouraging results, with a 16.5 metre intersection at 2.45 grams per tonne indicating scope for an open pit cutback and potentially a third underground branch.
The exploration strategy targets down-dip extensions of existing mineralization while converting Inferred Resources to higher confidence classifications. This dual approach increases the probability of success by focusing on areas with demonstrated geological merit. The consistent recovery of high-grade intercepts across multiple zones, from West Winds through Four Pillars and into surface targets, suggests the broader Dalgaranga system possesses genuine strike continuity and vertical persistence.
Investors should monitor the company’s upcoming March Quarterly results conference call scheduled for 29 April 2026, which will provide additional colour on drilling performance, resource estimation timelines, and any preliminary guidance on mining studies for Gilbey’s Underground. The pace of resource definition and movement toward feasibility studies will be critical metrics, as will any commentary on capital requirements and production ramp timing. This announcement has been flagged as price sensitive by the ASX and represents material information for shareholders assessing the trajectory of Ramelius’s gold production growth.
View the full ASX announcement (PDF)
About Ramelius Resources Limited (ASX: RMS)
Ramelius Resources Limited is a gold mining and exploration company that engages in the exploration, evaluation, mine development, operation, production, and sale of gold. The company operates through three segments: Mt Magnet, Edna May, and Exploration, with a portfolio of projects in Australia. Based in Perth, Australia, the company was incorporated in 1979 and generates the majority of its revenue from gold mining operations.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
