Hermès Annual Report 2009

FY2009 Annual Report · Hermès

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RAMELIUS RESOURCES LIMITED
2009 ANNUAL REPORT

CONTENTS

Chairman’s Report
Chief Executive Officer’s Report
Review of Operations
Native Title
Corporate Governance Statement
Glossary of Terms
Photographs & Diagrams
Directors’ Report
Auditor’s Independence Declaration
Income Statement
Balance Sheet
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
Directors’ Declaration
Independent Audit Report
Shareholder Information
Corporate Directory

01
02
03
10
11
24
29
34
46
47
48
49
51
52
86
87
90
Back Cover

Ramelius Resources Limited
ACN 001 717 540
ABN 51 001 717 540

Annual General Meeting
The Annual General Meeting of
Ramelius Resources Limited
will be held at
Enterprise House,
136 Greenhill Road, Unley,
South Australia on
Friday 27 November 2009
at 11.00 am Adelaide time.

Front Cover: Images at Wattle Dam Mine and Burbanks Mill
Below: Development adjacent to Emergency Escapeway at Wattle Dam Mine

Stock Exchange
The Company is listed on the
Australian Securities Exchange Limited.
The Home Exchange is Adelaide.

ASX Codes
Shares: RMS
Options: RMSOC

CHAIRMAN’S REPORT

Dear Shareholder,

It is with pleasure that I present to you the 2009 Annual
Report of Ramelius Resources Limited. Significant
progress has been made over the past twelve months
towards establishing the Company as a high grade
underground miner.

As at June 30, 2009 the Company was in a strong
financial position with cash on hand of $26.7 million.

Significant milestones achieved by Ramelius during the
year were as follows:

• A net profit after income tax expense of $4.97 million

for the 2009 financial year;

• Completion of the pit cut back at Wattle Dam;
• Production of 16,283 ounces of gold and revenue of

$19.8 million;

• Commencement of the Wattle Dam underground

mine in May, 2009; and

• Substantially completed the rehabilitation of

the

Wattle Dam Waste Dump.

The financial result of a $4.97 million net profit was an
excellent result and is the third year that the Company
has achieved this outcome. The result reflects the focus
the Company continues to have on low cost
that
operations as the principle driver
its business
activities.

for

The Company again benefited from the gold overcall at
Wattle Dam. It was planned to produce 5,620 ounces of
gold from the cut back to the open pit, with actual
production of 16,283 ounces. This is a positive outcome
for the mine, as we are about to commence production
from the high grade underground resource.

In March 2009 the Company selected HWE Mining Pty
Limited to undertake the mining of the underground
project, and operations commenced in May, 2009 with
the first cut of the portal. Significant progress was made
by the end of the financial year, with over 253 metres of
decline completed in two months.

The Company’s Burbanks mill also performed well during
the year, with over 158,000 tonnes of ore processed and
recoveries above 96 percent. The Burbanks mill has been
a significant purchase for the Company, ensuring cash
flows are received in a timely manner without being reliant
on third party mills.

Ramelius has
completed the
also substantially
rehabilitation of waste dumps from its open pit operations
to a high industry standard. This is an important step
towards ensuring that regulatory and social expectations
are met as the project moves forward.

that

It was also announced during the year
the
Company’s founding Managing Director Mr. Joe
Houldworth would retire. I would like to thank Joe for his
vision and enthusiasm to develop Ramelius into the
position it is in today. It is also with great pleasure that I
acknowledge that Joe will stay on as a Non-Executive
Director.

I would like to thank shareholders for their loyalty and
support throughout the year and together with my fellow
directors, look forward to being able to deliver high grade
production in 2009/10.

I also take this opportunity to sincerely thank our
Directors, all our employees and consultants for their
efforts throughout the year.

Bob Kennedy
Chairman

CHIEF EXECUTIVE OFFICER’S REPORT

Dear Shareholder,

The past year has been a year of consolidated production
and development for the Company.

The open pit cut back was expected to be completed by
the end of 2008, but mining was slowed due to hard
mining conditions and the large number of ore tonnes
extracted. The pit did however produce over 16,000
ounces of gold, which was approximately three times that
expected. This outcome, whilst not taken for granted,
was in line with results from the original pit.

The pit cut back was designed to provide access to fresh
rock in which the portal and decline could be established.
The pit was completed in April 2009 and the
underground portal and decline were established in the
western wall of the pit in May 2009. The Company
selected HWE Mining Pty Limited as its primary
underground contractor and to date this arrangement
has been very successful.

The underground mine is expected to be one of
Australia’s highest grade underground mines, producing
an expected base case 68,000 ounces of gold up to
November 2010. First development ore should be milled
in November 2009 and high grade stoping ore from
January 2010. At this time the mine will be in full
production.

Deep exploration drilling continues below the current
mine plan, with the current drilling defining the mine
geology and visible gold up to 300 metres below surface.
During the year, diamond drilling intersected a significant
result of 5.5 metres at 148 g/t gold below the current
mine plan. This and other deeper results will be followed
up with drilling from underground in early 2010.

results at

Regional exploration continued during the year, with
significant
the Golden Orb and 8500N
prospects. These results will be followed up in the
2009/10 year. Several new projects were reviewed dur-
ing the year, with none meeting the Company’s criteria of
acquiring projects with potential for low cost production.

The Company is now entering an exciting time where it is
finally gaining access to the high grade zone at Wattle
Dam. It is also a time where the Company will begin to
look for growth opportunities; both through exploration
and acquisition.

I would like to take this opportunity to thank the Ramelius
team and our contractors for their dedication to getting
the job done well in the 2009 year. I would also like to
thank my fellow directors for their continued support and
guidance.

Ian Gordon
Chief Executive Officer

REVIEW OF OPERATIONS

Financial Highlights

• Sales revenue of $19.8 million from gold sales of

15,393 ounces at an average price of A$1,288 per ounce.

• Net profit after tax of $4.97 million (up from $0.61 million in 2008)

• $17.9 million additional capital raised during the year

• Cash at the end of the financial year of $26.7 million.

Revenue from gold sales of $19.8 million was up 33.8%
from the previous year and reflects a stronger average
gold price during the current year of A$1,288 per ounce.

Consolidated net profit after tax was $4,973,356.

Additional capital totalling $17.9 million was raised from
a $13.4 million placement of shares to institutional and
sophisticated investors and an issue of $4.5 million of
shares to shareholders under the Company’s Share
Purchase Plan at $0.53 per share.

At 30 June 2009 the Company had no debt and held
cash assets of $26.7 million.

REVIEW OF OPERATIONS

Operational Highlights

• Completion of the pit cut back at Wattle Dam in April 2009

• Production of 16,283 ounces of gold from the pit cut back

• Commencement of high grade underground mine in May 2009

MINING AND MILLING OPERATIONS

The Wattle Dam Gold mine is located approximately
25km south-west of Kambalda in the Eastern Goldfields
of Western Australia. The gold resource at Wattle Dam is
hosted in sheared ultramafic rocks and has been drilled
to a vertical depth of over 200 metres. The mine
commenced production in March 2006 and as at
30 June 2009,
two phases of mining had been
completed. A cut back to the open pit was completed in
April 2009 to establish access to fresh rock for the
underground portal.

The Company appointed HWE Mining Pty Limited as its
underground contractor in March 2009. The underground
mine at Wattle Dam was commenced in May 2009 with
the portal cut and by the end of June 2009, the decline
was advanced by 253 metres (refer Figure 1 on page 29).

Mining
During the 2009 financial year a total of 158,038 tonnes
of ore was mined from the pit cut back at a grade of 3.34
grams per tonne gold.
In May 2009 the portal was
established at a depth of 75 metres below surface into
the west side of the pit (refer Figure 2 on page 29). The
underground decline and cross cuts will intersect the top
of the ore body at a depth of 99 metres below surface,
immediately below the north western edge of the open pit.

Milling
A total of 151,697 tonnes of ore was processed during
the 2009 financial year at the Company’s gold treatment
plant at Burbanks, near Coolgardie. The mill performed
well during the year, treating ore at capacity since
September 2008.

Production Statistics –
2009 Financial Year

Unit

Mined

Grade g/t
gold

Ore processed

tonnes

151,697

3.59

Recovery

Gold Production*

16,283

506.4

* Includes G.I.C. recovered

Rehabilitation
During the year, the Company completed a substantial
rehabilitation program over the open pit waste dump,
including slope design,
replacement and
vegetation spreading (refer Figure 3 on page 30).

top soil

At the date of this report, the underground mine was well
advanced, with ore development commencing in
September 2009 and full production expected by
January 2010.

REVIEW OF OPERATIONS

EXPLORATION

Ramelius controls the gold rights and majority nickel
rights over approximately 220 km2 covering the
Kunanalling and Spargos Reward Shears.

Gold exploration during the year was conducted at the
Wattle Dam, Golden Orb, 8500N, West Wattle Dam and
Black Cat prospects whilst nickel exploration was
conducted at
Regional
exploration focusing on both gold and nickel was also
conducted within the project area (refer Figure 4 on
page 30).

the 1A North prospect.

Wattle Dam Project
(Gold, Tantalum, Nickel) (100% Gold, Tantalum and
earning 80% Nickel Rights; MLs; 15/1101; 15/1263;
15/1264; 15/1323; 15/1338; 15/1769-1773; PL
15/4479, 100% MLs 1774-1776; PL 15/4381 [MLA
15/1474])

Wattle Dam Gold Mine (Gold)
Exploration diamond drilling totalling 19 holes for 5,968.9
metres was completed at Wattle Dam. The drilling was
focused on the definition of the high grade gold zone
immediately beneath and to the north of the open pit and
defining further high grade mineralisation further down
plunge. High grade intersections returned from within the
underground mine plan include 4 metres at 14.4g/t gold
from 204 metres including 1 metre at 54.1g/t from 204
metres.

Further high grade intersections including 5.5 metres at
148g/t Au from 273.5 metres (including 0.2 metres at
1,846g/t gold from 273.9 metres and 0.6 metres at
738g/t gold from 277.4 metres) and 3 metres at 7.7g/t
gold from 284 metres were received from drilling
completed down plunge to the north of the mine plan.
These intersections highlight the potential for further high
grade resources underneath the current underground
mine plan (refer Figure 5 on page 31). Further drilling is
planned to extend and define mineralisation associated
with these intersections.

An updated mineral resource estimate for the Wattle Dam
Gold Deposit was completed. The mineral resource
estimate included all resources outside of the Stage 1 pit.
The total estimated contained ounces within the resource
has increased by 43% since the initial resource estimate
completed in 2007. Using a 1.0g/t gold lower cut, the
total JORC compliant Indicated and Inferred resource is
estimated at 677,000 tonnes @ 5.5 g/t gold containing
118,600 ounces of gold. Within the total mineral
resource there are four higher grade (≥8.0g/t Au) zones
which are estimated to contain a total of 131,000 tonnes
@ 18.8 g/t gold for 79,000 ounces, or 65% of the gold
within the resource. A top cut of 400g/t gold was
applied to the above four higher grade zones.

evaluate

completed to further

Golden Orb (Gold)
A program of 15 diamond drill holes for 3,095.7 metres
was
interpreted
north-northwest trending mineralised zones identified by
previous RC drilling which returned a maximum result of
7 metres @ 10.9 g/t gold from 117 metres.
The
completed diamond drilling intersected zones of quartz-
carbonate veining and minor visible gold within weak to
moderate chlorite/carbonate/pyrite altered ultramafic
lithologies. Maximum results returned from the drilling
include 1 metre at 99.1g/t gold from 199 metres and
10 metres at 3.2g/t gold from 176 metres.

The drilling identified and intersected a structure which
dips 48 degrees towards the east-northeast which is
interpreted to offset mineralisation to the east and down
the structure, (dextral dip-slip movement).

Further drilling at Golden Orb is likely to be orientated to
evaluate the offsetting structure and the interpreted offset
location of the mineralised trend at depth.

8500N (Gold)
is located approximately 600
The 8500N Prospect
metres to the north of the Wattle Dam Gold Mine. The
prospect is defined by an 800 metre long, >50ppb gold
in soil anomaly. Drilling of the soil anomaly by previous
explorers was completed at 200 metre line spacings.

A total of 21 RC drill holes for 2,317 metres were drilled
over the most significant portion of the soil anomaly in
order to infill previous drilling to 20 metres x 40 metres
drill spacing. The drilling intersected predominantly felsic
lithologies in contact with ultramafic lithologies to the east
and west.

Two zones of mineralisation were interpreted from the
results of the drilling, comprising a supergene zone within
the weathering profile overlying the felsic lithologies and
a fresh rock zone associated with the eastern felsic/
ultramafic contact. Maximum results returned from the
zone include 20 metres at 5.3g/t gold from 40 metres
including 9 metres at 8.5g/t gold from 40 metres and 4
metres at 4.9g/t gold from 84 metres including 1 metre at
10.1g/t gold from 86 metres respectively.

REVIEW OF OPERATIONS

A program of 10 RC drill holes has been generated to
follow up the above zones of mineralisation along strike
to the north and south and down dip.

Two lines of Aircore drilling spaced 200 metres to the
north and south of the above significant RC drilling were
completed for a total of 21 holes for 1,001 metres. The
drilling was designed to test
the
supergene mineralisation and contact associated
mineralisation identified at 8500N. Anomalous results
were received from this drilling associated with both the
supergene and contact related zones identified at 8500N,
however the grades within the zone ranged from 0.1 to
0.8 g/t gold.

for extensions of

West Wattle Dam (Gold)
A program of 40 Aircore (hammer) holes for 1,476 metres
was completed in order to evaluate an area of auger gold
anomalism associated with physical gold within quartz
veining located at
the surface. The drilling was
completed at spacings of 20 metres x 25/50 metres.

Drilling results returned a maximum intercept of 8 metres
at 0.27g/t gold from 16 metres from drilling completed
underneath the identified gold mineralised quartz veining
at surface.

1A North (Nickel)
One diamond drill hole for 297 metres was completed to
evaluate a strong off-hole conductor indentified by Down
Hole Transient Electromagnetics (DHTEM)
in earlier
drilling. The hole consisted of a 198 metre RC precollar
with a 99 metre diamond tail. The drill hole intersected a
complex range of lithologies, with the conductor identified
as a narrow interval of pyrrohtite rich ultramafic.
Subsequent DHTEM of this hole identified a moderate in
hole anomaly at this depth.

Regional RAB/Aircore Drilling (Gold and Nickel)
A large program of Aircore drilling (199 holes for
approximately 7,245 metres) was completed. The drilling
was designed to evaluate several areas anomalous in
gold and nickel and trends to the east and south of the
Wattle Dam Gold Mine as well as infill anomalous regional
drilling to the north of Wattle Dam (Central Area) to a drill
spacing of 40 metres x 200 metres.

A number of nickel anomalies were generated from the
drilling program. The most significant results, including
11 metres at 6,858ppm Nickel
from 28 metres
(SRAC0338) and 12 metres at 6,053ppm Nickel from
28 metres (SRAC0312), lie adjacent and along strike of
the western contact of an ultramafic belt to the east of
the Wattle Dam Gold Mine.

The gold results from the completed drilling highlighted a
number of significant (≥0.5g/t gold) anomalies. A maximum
intercept of 20 metres at 1.0g/t gold from 32 metres
including 4 metres at 3.1g/t gold from 32 metres within
SRAC0277 was received. This intercept is located
40 metres to the north of a significant intersection of
4 metres @ 4.7g/t gold from 49 metres within previous
RC drilling, (WDRC086).

Further Aircore drilling designed to infill areas of nickel
and gold anomalism and to extend the completed drilling
is planned for the coming year.

North Widgiemooltha Blocks
(100% Gold Rights)
15/101; 15/102; 15/653; ML 15/1271)

(MLs 15/97; 15/99; 15/100;

North Widgiemooltha Regional
A total of three RC holes for 231 metres were drilled to
follow up a significant intercept of 12 metres @ 5.5g/t
gold from 28 metres including 4 metres at 10.5g/t gold
from 32 metres, located 300 metres south of Golden
Orb. Drilling was completed over a single line with holes
drilled every 10 metres. A significant result of 3 metres at
2.2g/t gold from 36 metres (NWRC0016) was returned
down dip from the above significant result. No immediate
follow up drilling is planned.

The Information in this report that relates to Exploration Results is based
on information compiled by Matthew Svensson and Diane Tily-Laurie.

Matthew Svensson is a Member of the Australian Institute of Geoscientists
and has sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity he is
undertaking to qualify as a Competent Person as defined in the 2004
Edition of the Australasian Code for Reporting on Exploration Results.
Matthew Svensson is a full-time employee of the Company and consents
to the inclusion in the report of the matters based on his information in the
form and context in which it appears.

Diane Tily-Laurie is a Member of the Australian Institute of Mining and
Metallurgy and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity she is undertaking to qualify as a Competent Person as defined
in the 2004 Edition of the Australasian Code for Reporting on Exploration
Results. Diane Tily-Laurie is a full-time employee of the Company and
consents to the inclusion in the report of the matters based on her
information in the form and context in which it appears.

The information in this report that relates to in-situ mineral resources is
based on information compiled by Scott Jarvis of Ramelius Resources
Limited. Scott Jarvis has taken overall responsibility for the report. He is
a Member of the Australian Institute of Geoscientists and has sufficient
experience, which is relevant to the style of mineralisation and type of
deposit under consideration, and to the activity he is undertaking, to
qualify as a Competent Person in terms of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves
(JORC Code 2004 Edition). Scott Jarvis consented to the inclusion of
such information in this report in the form and context in which it appears.

REVIEW OF OPERATIONS

Interests in Mining Tenements
The Company’s interests in mining tenements are as follows:

Project

Location

Tenement

Status

Application
Date

Grant
Date

Expiry
Date

Associated
Tenement
ID

Acquiring
%

Acquired
%

Registered Beneficial

Owner

Coolgardie
Coolgardie
Coolgardie

P15/5399
P15/5400
P15/5462

Application
Application
Application

13-May-09
13-May-09
1-Sep-09

100%
100%

Ramelius
Ramelius
Chitty

Ramelius
Ramelius
Ramelius

90%

Coolgardie

M16/34

Granted

15-Sep-86

28-Jan-87

27-Jan-29

90%

Ramelius

Bullabulling
Bullabulling
Bullabulling

Jaurdi/
Black Cat

Coolgardie

M16/115

Granted

29-Sep-88

10-Sep-90

9-Sep-11

Hilditch

Coolgardie

M15/1448

Granted

9-Mar-04

30-Jun-08

29-Jun-29

Wattle Dam

Coolgardie

M15/1101

Granted

26-Mar-97

19-Mar-04

18-Mar-25

Wattle Dam

Coolgardie

M15/1263

Granted

23-Oct-98

24-Aug-04

23-Aug-25

Wattle Dam

Coolgardie

M15/1264

Granted

23-Oct-98

24-Aug-04

23-Aug-25

Wattle Dam

Coolgardie

M15/1323

Granted

10-Feb-00

30-Jun-08

29-Jun-29

Wattle Dam

Coolgardie

M15/1338

Granted

9-Jun-00

30-Jun-08

29-Jun-29

Ramelius

90%

100% &
80% of
Ni Rights

Wattle Dam

Coolgardie

M15/1474

Application

12-Apr-04

P15/4381

100%

Ramelius

Wattle Dam

Coolgardie

M15/1769

Granted

1-Feb-06

30-Jun-08

29-Jun-29

Wattle Dam

Coolgardie

M15/1770

Granted

1-Feb-06

30-Jun-08

29-Jun-29

Wattle Dam

Coolgardie

M15/1771

Granted

1-Feb-06

30-Jun-08

29-Jun-29

Wattle Dam

Coolgardie

M15/1772

Granted

1-Feb-06

30-Jun-08

29-Jun-29

Wattle Dam

Coolgardie

M15/1773

Granted

1-Feb-06

30-Jun-08

29-Jun-29

Wattle Dam

Coolgardie

M15/1774

Granted

1-Feb-06

30-Jun-08

29-Jun-29

Wattle Dam

Coolgardie

M15/1775

Granted

1-Feb-06

30-Jun-08

29-Jun-29

Wattle Dam

Coolgardie

M15/1776

Granted

1-Feb-06

30-Jun-08

29-Jun-29

Wattle Dam
Wattle Dam

Coolgardie
Coolgardie

P15/4381
P15/4444

North Widgie
North Widgie
North Widgie
North Widgie
North Widgie
North Widgie
North Widgie

Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie

M15/97
M15/99
M15/100
M15/101
M15/102
M15/653
M15/1271

Granted
Granted

Granted
Granted
Granted
Granted
Granted
Granted
Granted

5-May-00
2-Feb-01

9-Jan-01
5-May-06

9-Dec-83
9-Dec-83
9-Dec-83
9-Dec-83
9-Dec-83
20-Nov-92
7-Dec-98

26-Jul-84
26-Jul-84
26-Jul-84
26-Jul-84
11-Apr-85
29-Jan-93
7-Feb-07

8-Jan-05
4-May-10

25-Jul-26
25-Jul-26
25-Jul-26
25-Jul-26
10-Apr-27
28-Jan-14
6-Feb-28

Larkinville

Coolgardie

E15/689

Granted

2-Jun-00

20-Apr-05

19-Apr-10

Larkinville

Coolgardie

E15/742

Granted

26-Oct-01

20-Apr-05

19-Apr-10

Ramelius

100% &
80% of
Ni Rights

M15/1474

100%
100%

Ramelius
Ramelius

was
P15/3666

Gold Rights
Gold Rights
Gold Rights
Gold Rights
Gold Rights
Gold Rights
Gold Rights

ANM
ANM
ANM
ANM
ANM
ANM
ANM

Ramelius
Ramelius
Ramelius
Ramelius
Ramelius
Ramelius
Ramelius

75% & 80% Ramelius
Ni Rights

Ramelius
& Pioneer & Pioneer

75% & 80% Ramelius
Ni Rights

Ramelius
& Pioneer & Pioneer

REVIEW OF OPERATIONS

Project

Location

Tenement

Status

Application
Date

Grant
Date

Expiry
Date

Associated
Tenement
ID

Acquiring
%

Acquired
%

Registered Beneficial

Owner

Larkinville

Coolgardie

E15/896

Granted

13-Jul-05

9-Jan-07

8-Jan-12

Larkinville

Coolgardie

E15/1039

Granted

3-Sep-07

13-Mar-09

12-Mar-14

75% & 80%
Ni Rights

Pioneer

Ramelius
& Pioneer

Larkinville

Coolgardie

E15/1062

Granted

8-Feb-08

3-Dec-08

2-Dec-13

100%

Ramelius

Coolgardie

M15/1449

Application

9-Mar-04

P15/4213-
4214

75% & 80% Ramelius
Ni Rights

Ramelius
& Pioneer & Pioneer

Larkinville

Coolgardie

P15/4213

Granted

17-Feb-99

28-Mar-00

27-Mar-04 M15/1449

Larkinville

Coolgardie

P15/4214

Granted

17-Feb-99

28-Mar-00

27-Mar-04 M15/1449

Larkinville

Coolgardie

P15/4765

Application

17-Jan-06

Larkinville

Coolgardie

P15/4790

Granted

19-Apr-06

14-Aug-07

13-Aug-11

Larkinville

Coolgardie

P15/4904

Application

22-Jan-07

Larkinville

Coolgardie

P15/4905

Application

22-Jan-07

M15/1449

75% & 80% Ramelius
Ni Rights

Ramelius
& Pioneer & Pioneer

75% & 80% Ramelius
Ni Rights

Ramelius
& Pioneer & Pioneer

75% & 80%
Ni Rights

Pioneer

Ramelius
& Pioneer

75% & 80% Ramelius
Ni Rights

Ramelius
& Pioneer & Pioneer

75% & 80% Ramelius
Ni Rights

Ramelius
& Pioneer & Pioneer

75% & 80% Ramelius
Ni Rights

Ramelius
& Pioneer & Pioneer

Larkinville

Coolgardie

P15/5185

Granted

25-May-07

11-Apr-08

10-Apr-12

100%

Ramelius

Eucalyptus

Mt Margaret

M39/803

Granted

15-Aug-00

22-May-08

21-May-29

Eucalyptus

Mt Margaret

M39/804

Granted

15-Aug-00

22-May-08

21-May-29

50% of
Gold Rights

NiWest

Groundlark

Coolgardie

M15/1290

Granted

29-Jun-99

25-Oct-02

24-Oct-23

100%

Ramelius

Eagles Nest

Coolgardie

M15/1475

Granted

12-Jul-04

29-Sep-04

28-Sep-25

100%

Ramelius

Burbanks

Coolgardie

M15/1273

Granted

16-Dec-98

30-Mar-99

29-Mar-20

Burbanks

Coolgardie

M15/1369

Granted

22-May-01

31-Dec-01

30-Dec-22

Burbanks

Coolgardie

M15/1370

Granted

22-May-01

31-Dec-01

30-Dec-22

Burbanks

Coolgardie

P15/5269

Granted

19-May-08

29-Jun-09

28-Jun-13

Burbanks

Coolgardie

G15/10

Granted

22-Mar-91

20-May-92

19-May-13

Burbanks

Coolgardie

G15/11

Granted

22-Mar-91

20-May-92

19-May-13

Burbanks

Coolgardie

G15/12

Granted

22-Mar-91

20-May-92

19-May-13

Burbanks

Coolgardie

G15/13

Granted

22-Mar-91

20-May-92

19-May-13

Burbanks

Coolgardie

L15/109

Granted

3-Jul-89

22-Jun-90

21-Jun-10

Burbanks

Coolgardie

L15/110

Granted

3-Jul-89

22-Jun-90

21-Jun-10

Burbanks

Coolgardie

L15/189

Granted

10-Mar-94

21-Jun-94

20-Jun-14

Burbanks

Coolgardie

L15/234

Granted

31-Jan-02

27-Nov-03

26-Nov-24

Burbanks

Coolgardie

L15/284

Granted

21-Sep-07

25-May-09

24-May-30

100%

Ramelius
Milling
Services
Pty Ltd

REVIEW OF OPERATIONS

Royalty Interests
The Current status of the Company’s Royalty Interests is as follows:

Project
Name

SANDSTONE*
– Gold

BULONG*
– Gold

SPARGOS
REWARD*
– Gold

Location

Tenement

East Murchison

Various

Current
Holder

Nature of
Ramelius’
Royalty

Troy Resources
NL

Production based
Royalty Capped
at $300,000

East Coolgardie

Various

Yilgarn Gold Ltd

Production based
Royalty
Not Capped

Coolgardie

Various

Breakaway
Resources Ltd

3% Gross
Gold Royalty

SIBERIA*
– Gold/Nickel

Broad Arrow

Various

Siberia Mining
Corp Ltd

EDJUDINA*
– Gold

Mt Margaret

Various

Saracen
Mineral
Holdings Ltd

EUCALYPTUS*
– Nickel

Mt Margaret

M39/803,
M39/804

GME
Resources Ltd

Nickel and Gold
Royalty
Collectively
capped at
$100,000

Production
based
Royalty Capped
at $500,000

Option to
purchase on
commencement
of mining Nickel
Laterites at
$0.10/tonne of
Proven Ore.

Comments

No Current
Activity by
Holder on the
Royalty
Tenements

No Current
Mining Activity
by Holder on
the Royalty
Tenements

No Current
Activity by
Holder on the
Royalty
Tenements

Currently
Subject to
Proposed
Development

No Current
Activity by
Holder on the
Royalty
Tenements

PARKER
RANGE
– All minerals

Yilgarn

E77/1403,
P77/3764-5,
P77/3481

Cazaly Iron
Pty Ltd

Royalty of 1%
of value of
minerals produced
capped at
$500,000.

No Current
Activity by
Holder on the
Royalty
Tenements

* These royalty assets have been impaired and their carrying costs written off.

NATIVE TITLE STATEMENT

Exploration and mining areas held by the Company may
be subject to issues associated with Native Title. Whilst
it is not appropriate to comment in any detail upon
specific negotiations with Native Title parties,
the
directors of Ramelius believe it is important to state the
Company’s policy and approach to Native Title and
dealings with indigenous communities. The directors
believe that the following Native Title policy statement
summarises the Company’s desire to develop a spirit of
cooperation in its dealings with indigenous people, create
goodwill, mutual awareness and understanding and most
importantly, respect and commitment.

Recognition and Respect
Ramelius recognises Aboriginal regard for land and
respects their culture, traditions and cultural sites.

Understanding and Trust
Ramelius listens to Aboriginal community representatives
in order to understand their views and beliefs. Recognising
that communities may not be fully appreciative of how the
Company’s business and industry operates, Ramelius works
towards increasing their understanding, respect and trust
and to promote the Company’s obligations and economic
constraints amongst indigenous communities. Ramelius
ensures that its employees and contractors approach the
Company’s activities at local sites with respect and a
clear understanding of important issues and priorities.

Communication and Commitment
Ramelius adopts practical measures to develop trust.
Acknowledging that community leaders and representatives
have an obligation to consult its people in order to
determine their opinions and wishes and that this may
often not be achieved as quickly as is desired, Ramelius
uses its best endeavours to expedite the process and
ensure that its commercial
interests are not adversely
impacted. The Company also uses its best endeavours
to ensure reasonable rights of consultation and continued
access to land are facilitated and the integrity of land is
preserved. The Company is committed to taking
appropriate steps to identify and reduce the effects of any
unforseen impacts from its activities.

Achievements
During the year, Ramelius made production related
payments to both the Widji People and the Central West
Goldfields People and continued its business development
arrangements with the Widji People.

Acknowledgement
The directors of Ramelius publicly acknowledge the
continued co-operation and goodwill shown by the Widji
and Central West Goldfields People and their
representatives in the course of their interactions with the
Company during the year.

CORPORATE GOVERNANCE STATEMENT

Part A: Introduction
A1. The Board of Directors are responsible for the overall Corporate Governance of the Company including strategic
direction, management goal setting and monitoring, internal control, risk management and financial reporting.
In discharging this responsibility, the Board seeks to take into account the interests of all key stakeholders of the
Company, including shareholders, employees, customers and the broader community.

A2. As a listed entity, Ramelius Resources Limited is required to adhere to the ASX Listing Rules of the Australian
Securities Exchange. This includes the requirement to annually report the extent to which the entity has followed
the Corporate Governance Recommendations published by the ASX Corporate Governance Council (“ASXCGC”).
The recommendations are based on eight core principles of best practice for corporate governance which are not
intended to be prescriptions to be followed by all ASX listed companies, but rather guidelines designed to
produce an outcome that is effective and of high quality and integrity.
In considering corporate governance
practices, the Board is mindful of the recognition by the ASXCGC that a “one size fits all” approach to Corporate
Governance is not required. Instead, the ASXCGC states suggestions for best practice designed to optimise
corporate performance and accountability in the interests of shareholders and the broader economy. A company
may consider that a recommendation is inappropriate to its particular circumstances and has flexibility not to
adopt it and explain why.

A3. Except for those specifically identified and disclosed below, the Company has not to date adopted all ASXCGC
best practice recommendations because the Board believes it cannot justify the necessary cost given the size and
stage of the entity’s life as a public listed exploration company. The Board is, nevertheless, committed to
ensuring that appropriate Corporate Governance practices are in place for the proper direction and management
of the Company. This statement outlines the main Corporate Governance practices of the Company disclosed
under the principles outlined by the ASXCGC, including those that comply with best practice and which unless
otherwise disclosed, were in place during the whole of the financial year ended 30 June 2009.

Summary of Corporate Governance Principles and Recommendations

Reference

Principle 1 – Lay solid foundations for management and oversight
1.1 Establish the functions reserved to the Board and those delegated to senior

executives and disclose those functions.

B4, B6, B8, B18,
B20

1.2 Disclose the process for evaluating the performance of senior executives.

1.3 Provide the information indicated in the Guide to reporting on Principle 1.

B11, B66

Principle 2 – Structure the Board to add value

2.1 A majority of the Board should be independent directors.

2.2

2.3

The chair should be an independent director.

The roles of the chair and chief executive officer should not be exercised by
the same individual.

2.4

The board should establish a nomination committee.

2.5 Disclose the process for evaluating the performance of the board, its committees

and individual directors.

2.6 Provide the information indicated in the Guide to reporting on Principle 2.

B14

B12, B14

B15

B11

B11, B12, B13,
B14, B16, B17,
B66

Principle 3 – Promote ethical and responsible decision making

3.1 Establish a code of conduct and disclose the code or summary of the code as to:
• The practices necessary to maintain confidence in the company’s integrity;
• The practices necessary to take into account their legal obligations and the

B22, B23

reasonable expectations of their stakeholders;

• The responsibility and accountability of individuals for reporting and investigating

reports of unethical practices.

CORPORATE GOVERNANCE STATEMENT

3.2 Establish a policy concerning trading in company securities by directors,

B26, B27

senior executives and employees, and disclose the policy or a summary of that policy.

3.3 Provide the information indicated in the Guide to reporting on Principle 3.

Principle 4 – Safeguard integrity in financial reporting

4.1

The board should establish an audit committee.

4.2

The audit committee should be structured so that it:
• Consists only of non-executive;
• Consists of a majority of independent directors;
•
• Has at least three members.

Is chaired by an independent chair, who is not chair of the board;

4.3

The audit committee should have a formal charter.

4.4 Provide the information indicated in the Guide to reporting on Principle 4.

B66

B25

B12, B14,
B29, B34

B30

B12, B13, B34,
B36, B66

Principle 5 – Making timely and balanced disclosure

5.1 Establish written policies designed to ensure compliance with ASX Listing Rules
disclosure requirements and to ensure accountability at senior executive level for
that compliance and disclose those policies or a summary of those policies.

B38

5.2 Provide the information indicated in the Guide to reporting on Principle 5.

B37, B66

Principle 6 – Respect the rights of shareholders

6.1 Design a communications policy for promoting effective communication with

B39

shareholders and encouraging their participation at general meetings and disclose
the policy or a summary of the policy.

6.2 Provide the information indicated in the Guide to reporting on Principle 6.

B40, B66

Principle 7 – Recognise and manage risks

7.1 Establish policies for the oversight and management of material business risks

B41, B42

and disclose a summary of those policies.

7.2

7.3

The Board should require management to design and implement the risk
management and internal control system to manage the company’s material
business risks and report to it on whether those risks are being managed effectively.
The board should disclose that management has reported to it as to the
effectiveness of the company’s management of its material business risks.

The Board should disclose whether it has received assurance from the chief
executive officer (or equivalent) and chief financial officer (or equivalent) that the
declaration provided in accordance with section 295A of the Corporations Act
is founded on a sound system or risk management and internal control and that
the system is operating effectively in all material respects in relation to financial
reporting risks.

B42

B44

7.4 Provide the information indicated in the Guide to reporting on Principle 7.

B44, B66

CORPORATE GOVERNANCE STATEMENT

Principle 8 – Remunerate fairly and responsibly

8.1

The board should establish a remuneration committee.

B49

8.2 Clearly distinguish the structure of non-executive director’s remuneration from

that of executive directors and senior executives.

B48, B50, B56

8.3 Provide the information indicated in the Guide to reporting on Principle 8.

B12, B13, B48, B66

Part B: Corporate Governance Disclosure

Principle 1 – Lay solid foundations for management and oversight

Role of the Board
B1. The Board is governed by the Corporations Act 2001, ASX Listing Rules and a formal constitution adopted by the
Company in 2002 on its conversion from a proprietary limited company to a public company limited by shares and
as subsequently amended by shareholders.

B2. The Board’s primary role is the protection and enhancement of long-term shareholder value.
B3. The Board takes responsibility for the overall Corporate Governance of the Company including its strategic
direction, management goal setting and monitoring, internal control, risk management and financial reporting.
In discharging this responsibility, the Board seeks to take into account the interests of all key stakeholders of the
Company, including shareholders, employees, customers and the broader community.

B4. The Board has adopted a formal Board Charter in accordance with ASXCGC best practice recommendation 1.1.
The Board Charter details the functions and responsibilities of the Board of Directors including the Chairman and
the Managing Director/Chief Executive Officer of the company.

B5. The Board of Directors is responsible for the overall Corporate Governance of the Company. The Board overviews
the formulation of strategies and participates in setting objectives for the Company and the establishment of
policies to be implemented by management. The Board monitors the activities of the Company and ensures the
entity is accountable to external stakeholders.

B6. The Board’s responsibilities are extensive and include the following:

• Determining the size and composition of the Board of Directors, remuneration of directors (subject to the
maximum aggregate amount as approved from time to time by the company in general meeting) and
assessing the effectiveness of individual directors and the Board as a whole;

• Establishing committees of the Board and determining terms of reference and reporting requirements;
• Selecting and appointing (and where appropriate, removing) the Chief Executive, determining conditions of

service including remuneration and reviewing performance against key objectives;

• Ratifying the appointment (and where appropriate, removal) of senior management including the Chief
Financial Officer and Company Secretary and approving conditions of service including remuneration and
performance monitoring;

• Reviewing senior management succession planning and development;
• Approving strategic directions and performance objectives for the Company and monitoring implementation by

management;

• Ensuring adequate financial, and human resources are available to achieve the Company’s objectives;
• Delegating appropriate levels of authority to management;
• Overseeing the activities of the Company and ensuring effective systems of audit, risk management and
internal controls are in place to protect the entity’s assets and minimise operations beyond legal and
regulatory requirements or acceptable risk thresholds;

• Monitoring compliance with legal and other regulatory requirements including accounting standards, continuous

disclosure and ASX Listing Rules;

• Approving and monitoring financial budgets, capital management, major expenditures and significant

acquisitions and divestments;

• Approving and monitoring financial and other reporting;
• Approving and monitoring appropriate policies, procedures, codes of conduct and ethical standards for

directors and employees;

• Ensuring effective communication and reporting to shareholders and other key stakeholders of the Company.

CORPORATE GOVERNANCE STATEMENT

Board processes and management

B7. The Board has an established framework for the management of the entity including a system of internal control,
a business risk management process and appropriate ethical standards. To assist in the execution of its
responsibilities, the Board has an Audit Committee to deal with internal control, ethical standards and financial
reporting. The Audit Committee’s role and responsibilities, composition, structure and membership are set out in
In August 2008 the Board established a Remuneration Committee to deal executive
a formal Charter.
performance, remuneration, recruitment, retention and termination policies for senior management and incentive
schemes. In August 2009 the Committee was renamed the Nomination and Remuneration Committee.
B8. The Board appoints a Managing Director/Chief Executive Officer responsible for the day to day management of
the Company. The role of the Managing Director is documented in the Board Charter (refer Principle 2 below).

Performance Evaluation
B9. The Nomination and Remuneration Committee evaluates the performance of the Managing Director/Chief
Executive Officer, Chief Financial Officer/Company Secretary and other senior executives on a regular basis and
makes recommendations to the Board on any performance related remuneration matters. The Board encourages
continuing professional development of senior executives and other employees. The Company’s remuneration
practices are disclosed in the Remuneration Report section of the Directors Report.

B10. The Nomination and Remuneration Committee’s responsibilities include the following:

• Evaluating the necessary and desirable competencies for members of
the Board of Directors;
• Assessing skills, experience and expertise and making recommendations to the Board on candidates for

appointment and re-appointment as directors on the Board;

• Reviewing and making recommendations on processes for evaluating the performance of members of the

Board and its Committees and for assessing and enhancing director competencies;

• Reviewing and monitoring progress of succession plans and making recommendations to the Board;
• Reviewing and making recommendations to the Board on the remuneration of the Managing Director/CEO;
• Reviewing and making recommendations to the Board, on advice from the Managing Director/CEO, on
remuneration of senior executives of the Company (other than the Managing Director/CEO) and in respect of
remuneration matters generally;

• Evaluating and making recommendations to the Board on the Company’s recruitment, retention and

termination policies and procedures;

• Assessing and making recommendations to the Board on remuneration policies and practices including
superannuation arrangements, incentive schemes and performance targets for senior executives and other
employees of the Company.

• Reviewing and assessing annually the performance of the Committee and the adequacy of its charter.
B11. A performance evaluation for the Board and its members is conducted by the Chairman on an informal basis as
considered necessary. There was no performance evaluation of the Board undertaken during the 2009 financial
year because this was planned for completion by December 2009. Performance evaluations for relevant senior
executives were undertaken by the remuneration committee during the 2009 financial year in accordance with the
Company’s performance evaluation process.

Principle 2 – Structure the Board to add value

Composition of the Board
B12. The names of the directors of the Company and terms in office at the date of this Statement together with their
skills, experience and expertise are set out below. The directors’ terms in office are considered appropriate in light
of the fact that the Company was a dormant company prior to its ASX listing in March 2003.

Robert Michael Kennedy Non-Executive Chairman - ASAIT, Grad, Dip (Systems Analysis), FCA, ACIS, Life
member AIM, FAICD.
Mr Kennedy joined Ramelius Resources Limited on 1 November 1995 as a non-executive chairman. He is a
chartered accountant and a consultant to Kennedy & Co, Chartered Accountants, a firm he founded. He is also
a director of ASX listed companies Beach Petroleum Limited (since 1991), Flinders Mines Limited (since 2001),
Maximus Resources Limited (since 2004), Monax Mining Ltd (since 2004), Eromanga Uranium Limited (since

CORPORATE GOVERNANCE STATEMENT

2006), and Marmota Energy Limited (since 2007). His special responsibilities include membership of the Audit
Committee and the Nomination & Remuneration Committee. Mr Kennedy brings to the Board his expertise in
finance and management consultancy and extensive experience as chairman and non-executive director of a
range of listed public companies including in the resources sector. Mr Kennedy leads the development of
strategies for the development and future growth of the Company.

Reginald George Nelson Non-Executive Director - BSc, Hon Life Member Society of Exploration Geophysicists,
FAusIMM, FAICD.
Mr Nelson joined Ramelius Resources Limited as a non-executive director on 1 November 1995. He has had a
career spanning nearly four decades as an exploration geophysicist in the minerals and petroleum industries. He
was chairman of the peak industry organisation, the Australian Petroleum Production and Exploration Association
(APPEA) from 2004 to 2006 and remains a member of its Council. He is a former Chairman of the Nevoria Gold
Mine Joint Venture in Western Australia. He has broad experience in gold exploration and mining operations in
Western Australia, the Northern Territory and South Australia. He is also a director of ASX listed companies, Beach
Petroleum Limited (since 1992), Monax Mining Ltd (since 2004) and Marmota Energy Limited (since 2007). His
special responsibilities include Chairmanship of the Audit Committee and the Nomination & Remuneration
Committee. Mr Nelson’s contribution to the Board is his wide technical expertise and knowledge of the mining
industry and corporate matters.

Ian James Gordon Executive Director and Chief Executive Officer - B.Com, MAICD.
Mr Gordon joined Ramelius Resources Limited as an executive director on 18 October 2007. He has more than
20 years experience in the resources industry in gold, diamonds and base metals. He has held management
positions with Rio Tinto Exploration Pty Ltd, Gold Fields Australia Pty Ltd and Delta Gold Limited. He was a
director of ASX listed company, Glengarry Resources Limited (2004 to 2005). His special responsibilities relate to
directing the exploration program and development of the Wattle Dam gold mine. Mr Gordon’s contribution to the
Board is his broad experience in gold exploration and mining operations in Australia and knowledge of industry
issues is directed towards expanding and strengthening the future growth of the Company.

Joseph Fred Houldsworth Non-Executive Director
Mr Houldsworth joined Ramelius Resources Limited as an executive director on 18 February 2002 and was
Managing Director and Chief Executive Officer until 31 July 2009. He has extensive practical experience in the
resource industry having worked in the mining and exploration industry for more than 30 years at both operational
and management levels primarily in the Western Australian Goldfields. He was instrumental in turning around the
troubled Nevoria Gold Mine in 1993 and is a former consultant for 10 years to insolvency specialists on both
mining and exploration. Mr Houldsworth’s contribution to the Board is his considerable experience and knowledge
of the mining industry and as the former chief executive of the company as well as his background in asset
management for various mining entities.

Kevin James Lines Non-Executive Director - BSc (Geology), MAusIMM.
Mr Lines joined Ramelius Resources Limited as a non-executive director on 9 April 2008. He has over 25 years
experience in mineral exploration and mining for gold, copper, lead/zinc and tin. He has held senior geological
management positions with Newmont Australia Limited, Normandy Mining Limited and the CRA group of
companies. He was the foundation Chief Geologist at Kalgoorlie Consolidated Gold Mines where he led the team
that developed the ore-body models and geological systems for the Super-Pit Operations in Kalgoorlie, managed
the Eastern Australian Exploration Division of Newmont Australia that included responsibility for the expansive
tenement holdings of the Tanami region. He is also managing director of ASX listed company, Eromanga Uranium
Limited (since 2006). Mr Line’s contribution to the Board is his extensive experience in the assessment and
evaluation of exploration projects and development of properties and mining operations overseas.

CORPORATE GOVERNANCE STATEMENT

B13. The Company held 22 meetings of directors (including committees of directors) during the financial year. The
number of directors’ meetings and number of meetings attended by each of the directors of the Company
(including committees of directors) during the financial year were as follows:

Directors’
Meetings

Audit Committee
Meetings

Nomination &
Remuneration
Committee
Meetings

Number
Eligible
to attend

Number
Attended

Number
Eligible
to attend

Number
Attended

Number
Eligible
to attend

Number
Attended

Director
Robert Michael Kennedy
Reginald George Nelson
Joseph Fred Houldsworth 1
Ian James Gordon 1
Kevin James Lines 1

17
17
17
17
17

3
3
N/A
N/A
N/A

2
2
N/A
N/A
N/A

1 Messrs Houldsworth, Gordon and Lines are not members of the Audit Committee or the Nomination & Remunera-
tion Committee.

B14. The composition of the Board currently consists of five directors, Mr RM Kennedy (Chairman), Mr RG Nelson,
Mr JF Houldsworth, Mr KJ Lines and Mr IJ Gordon. Apart from Mr Gordon (Chief Executive Officer), all other
directors including the Chairman, are non-executives. Although the composition of the Board is comprised of a
majority of non-executive directors, the majority of the Board is however not regarded as meeting the criteria of
being independent because two of the non-executive directors (Messrs Kennedy and Nelson) are officers of a
substantial shareholder of the Company and Mr Houldsworth was Managing Director until July 2009. One
director (Mr Lines) meets the independent director criteria contained in ASXCGC best practice recommendation
2.1. Notwithstanding the criteria set out in best practice recommendation 2.1, the Board considers that all non-
executive directors act independent from any conflict of interest and in the best interests of stakeholders because
all directors are required to disclose any conflict or material interest in any matter being considered by the Board
in accordance with the provisions of the Section 191 of the Corporations Act.

B15. Mr Kennedy’s role as Chairman of the Board is separate from that of the Managing Director/Chief Executive
Officer, Mr Houldsworth (until 31 July 2009)/Mr Gordon (since 1 August 2009) who is responsible for the day to
day management of the Company and is in compliance with the ASXCGC best practice recommendation 2.3
that these roles not be exercised by the same individual.

B16. The Company’s constitution specifies the number of directors must be at least three and at most ten. The Board
may at any time appoint a director to fill a casual vacancy. Directors appointed by the Board are subject to
election by shareholders at the following annual general meeting and thereafter directors (other than the
Managing Director) are subject to re-election at least every two years. The tenure for executive directors is linked
to their holding of executive office.

B17. Formal deeds were entered into by the Company with directors whereby all directors are entitled to take such legal
advice as they require at any time and from time to time on any matter concerning or in relation to their rights,
duties and obligations as directors in relation to the affairs of the Company.

B18. The Board Charter details the roles of the Chairman and Managing Director as follows.

CORPORATE GOVERNANCE STATEMENT

Role of the Chairman
B19. The role of Chairman is non executive and central to the effective corporate governance of the Company. The
in ensuring effective

Chairman leads the Board and General Meetings of the Company and is instrumental
communications exist between the Board of Directors and senior management. The Chairman is also
responsible for the following:

• Ensuring the Company has an effective Board and that there are appropriate procedures in place to evaluate

the performance of the Board as a whole, its individual directors and committees;

• Ensuring that meetings of the Board are conducted efficiently and effectively and that the quality of agenda and
Board papers properly inform directors on the operations of the Company so as to facilitate effective review,
analysis, discussion and decision making by directors;

• Promoting high standards of integrity and ethics;
• Establishing and maintaining a close working relationship with the Managing Director/Chief Executive Officer

and providing ongoing support and advice;

• Overseeing communications with shareholders and other key stakeholders and representing the Board of

Directors as required.

Role of the Managing Director/Chief Executive Officer
B20. The role of the Managing Director/Chief Executive Officer is separate from the Chairman and is appointed by the
non executive directors of the Board. The responsibilities of the Managing Director/Chief Executive Officer include
the following:

• Recommending strategic directions and implementing business plans approved by the Board;
• Managing the day to day operations of the Company including its financial, physical and human resources;
• Developing and implementing risk management procedures;
• Developing and implementing internal control and regulatory compliance policies and procedures;
• Providing timely, accurate and relevant information to the Board.

Principle 3 – Promote ethical and responsible decision making

Ethical standards
B21. The Company aims to a high standard of corporate governance and ethical conduct by directors and employees.
B22. The Company has a Policy Manual which contains a code of conduct that provides guidance to employees

regarding expected standards of behaviour, ethics and integrity as a condition of their employment.

B23. The Company’s code of conduct requires Directors and officers to:
• act in good faith and in the best interests of the Company;
• exercise care and diligence that a reasonable person in that role would exercise;
• exercise their powers in good faith for a proper purpose and in the best interests of the Company;
• not improperly use their position or information obtained through their position to gain a personal advantage

or for the advantage of another person to the detriment of the Company;

• disclose material personal interests and avoid actual or potential conflicts of interests;
• keep themselves informed of relevant Company matters;
• keep confidential the business of all directors meetings; and
• observe and support the Board’s Corporate Governance practices and procedures.

B24. All directors have signed deeds with the Company which require them to provide the Company with details of all
securities registered in the director’s name or an entity in which the director has a relevant interest within the
meaning of section 9 of the Corporations Act 2001 and details of all contracts, other than contracts to which the
Company is a party to which the director is a party or under which the director is entitled to a benefit, and that
confer a right to call for or deliver shares in the Company and the nature of the director’s interest under the
contract.

CORPORATE GOVERNANCE STATEMENT

B25. Directors are required to disclose to the Board any material contract in which they may have an interest. In
accordance with Section 195 of the Corporations Act 2001, a director having a material personal interest in any
matter to be dealt with by the Board, will not be present when that matter is considered by the Board and will not
vote on that matter.

Trading in the Company’s Securities
B26. The Company has a policy whereby directors, officers and employees are not permitted to trade in securities of
the Company at any time whilst in possession of price sensitive information not readily available to the market.
Section 1043A of the Corporations Act 2001 also prohibits the acquisition and disposal of securities where a
person possess information that is not generally available and which may reasonably be expected to have a
material effect on the price of the securities if the information was generally available.

B27. In addition the Board has approved a formal policy regarding notification of Directors’ interests in securities of the

Company and contracts.

Principle 4 – Safeguard integrity in financial reporting

CEO/CFO declarations on financial reports
B28. The Chief Executive Officer and Chief Financial Officer are required to provide written declarations to the Board
stating that in their opinions the Company’s annual financial reports present a true and fair view, in all material
respects, of the Company’s financial position and financial performance are in accordance with relevant accounting
standards.

Audit Committee
B29. Ramelius is not a Company required by ASX Listing Rule 12.7 to have an Audit Committee during the year although
it is a best practice recommendation of the ASXCGC. Notwithstanding the Listing Rule requirement, the Company
has established an Audit Committee in accordance with ASXCGC best practice recommendation 4.1 to oversee
the Company’s internal controls, ethical standards, financial reporting, and external accounting and compliance
procedures.

B30. The Board has adopted a formal Charter for the Audit Committee in accordance with ASXCGC best practice
recommendation 4.3. The Charter details the Audit Committee’s role and responsibilities, composition and
membership requirements. The role of the Chairman of the Audit Committee is also detailed in the Charter.
B31. The Audit Committee is generally responsible for the integrity of the Company’s financial reporting and

overseeing the performance and independence of the external auditor.

B32. Members of the Audit Committee have full rights to access all information and records of the Company and to
discuss any matter with the external auditor and senior management. The Committee also has the right to seek
external professional advice at the cost of the Company.

B33. The Audit Committee’s responsibilities are as follows:

• Overseeing establishment, maintenance and reviewing the effectiveness of the Company’s internal control and
ensuring efficacy and efficiency of operations, reliability of financial reporting and compliance with applicable
Accounting Standards, Regulations and ASX Listing Rules;

• Reviewing, assessing and making recommendations to the Board on the annual and half year financial reports

and other financial information or formal announcements published or released by the Company;

• Assessing and ensuring that any significant transactions and related party dealings are properly recognised,

recorded and disclosed in the Company’s financial reports;

• Obtaining and reviewing statements from the Chief Executive Officer and Chief Financial Officer expressing
opinions on whether the Company’s financial records have been properly maintained and whether financial
statements comply with accounting standards and present a true and fair view;

• Reviewing the effectiveness of the Company’s risk management and internal compliance systems;
• Approving and monitoring appropriate policies, procedures, codes of conduct and ethical standards for
directors and employees and receiving and assessing management reports on any deficiencies or weaknesses
that may arise;

• Liaising and discussing any relevant issues with the Chief Executive Officer and Chief Financial Officer;

CORPORATE GOVERNANCE STATEMENT

• Assessing the scope of the annual audit and half year review, ensuring emphasis is placed on any areas

requiring special attention;

• Liaising with and reviewing all reports of the external auditor including audit reports, management letters and

independence declarations;

• Reviewing performance and assessing independence of the external auditor having regard for the provision of
any non audit services and where necessary, making recommendations relating to audit fees, selection process,
appointment, and removal of the Company’s external auditor;

• Obtaining and reviewing statements confirming the external auditor’s independence;
• Reviewing and monitoring management’s response to any significant external auditor

findings and

recommendations;

• Reporting generally to the Board on the activities of

the Committee and making any necessary

recommendations relating to areas of improvement;

• Reviewing the contents of statements to be included in the annual report on the activities of the Committee;
• Ensuring effective communication and reporting of the role of the Committee to shareholders and other key

stakeholders of the Company;

• Reviewing and assessing annually the performance of the Committee and the adequacy of this Charter.

B34. The Audit Committee currently consists of the two non-executive Board directors, Messrs Kennedy & Nelson,
and is chaired by Mr Nelson. Mr Kennedy is a qualified Chartered Accountant. Details of these directors’
qualifications and attendance at meetings are set out in the Directors’ Report section of this report. The Audit
Committee currently consist of less than three members and does not have a majority of independent directors
including an independent Chairman. The members of the Committee are not regarded as being independent
according to the criteria set out in the ASXCGC best practice recommendations because they are officers of a
substantial shareholder of the Company. Notwithstanding the criteria set out in best practice recommendation 2.1
regarding independence, the Board considers that all members of the Committee act independent from any
conflict of interest and in the best interests of stakeholders because all directors are required to disclose any
conflict or material interest in any matter being considered by the Committee in accordance with the provisions
of the Section 191 of the Corporations Act. Nevertheless, notwithstanding that the Company is not required to
have an Audit Committee by ASX Listing Rule 12.7, the Audit Committee established by the Board is in partial
compliance with ASXCGC best practice recommendation 4.2 in that it consists of only non-executive directors with
a Chairman who is not the Chairman of the Board. The Board considers the current composition of the Audit
Committee is appropriate given the current composition and size of the Board of Directors.

B35. The role of Chairman is non executive and central to the effectiveness of the Audit Committee and its
contribution to the Board’s overall responsibility for the Corporate Governance of the Company. The Chairman
leads the Committee and its meetings and is instrumental in ensuring effective communications exist between the
Committee and the Board of Directors, senior management and external auditor. The Chairman is also
responsible for the following:
• Ensuring the Audit Committee has appropriate procedures in place to evaluate the performance and

effectiveness of the Committee as a whole and its individual Members;

• Ensuring that meetings of the Audit Committee are conducted efficiently and effectively and that the quality of
agendas and papers properly inform Members on matters before the Committee that facilitates effective review,
analysis, discussion and decision making by Members of the Committee;

• Promoting high standards of integrity and ethics;
• Maintaining a close working relationship with the Managing Director/Chief Executive Officer, senior management
and external auditor so as to facilitate an effective flow of relevant and appropriate information to the
Committee;

• Ensuring that the Board is kept informed on all matters relating to the activities of the Committee and overseeing

any communications concerning its activities with shareholders and other key stakeholders.

B36. The Committee meets at least two times per annum and reports to the Board. The Managing Director/Chief
Executive Officer, Chief Financial Officer and external auditor may by invitation attend meetings at the discretion
of the Committee.

CORPORATE GOVERNANCE STATEMENT

Principle 5 – Making timely and balanced disclosure

Continuous Disclosure
B37. The Company operates under the continuous disclosure requirements of the ASX Listing Rules and ensures that
all information which may be expected to affect the value of the Company’s securities or influence investment
decisions is released to the market in order that all investors have equal and timely access to material information
concerning the Company. The information is made publicly available on the Company’s website following release
to the ASX.

B38. Although the Company has a procedure in place to promote timely disclosure of material information, proper
vetting and authorisation of announcements that are factual and properly presented, such procedures have only
been summarised and not formally documented in detail. The Board does not consider this to have impeded
compliance with the continuous compliance requirements of the ASX Listing Rules given the size of the Company.

Principle 6 – Respect the rights of shareholders

The Role of Shareholders
B39. The Board aims to ensure that shareholders are informed of all major developments affecting the Company’s state
In accordance with the ASXCGC best practice recommendation 6.1, information is communicated to

of affairs.
shareholders as follows:
•

the annual financial report which includes relevant information about the operations of the Company during the
year, changes in the state of affairs of the entity and details of future developments, in addition to the other
disclosures required by the Corporations Act 2001;
the half yearly financial report lodged with the Australian Securities Exchange and thereby the Australian
Securities and Investments Commission and sent to all shareholders who request it;

•

• notifications relating to any proposed major changes in the Company which may impact on share ownership

rights that are submitted to a vote of shareholders;

• notices of all meetings of shareholders;
• publicly released documents including full text of notices of meetings and explanatory material made available
on the Company’s internet web-site at www.rameliusresources.com.au and sent by email to shareholders
who request to receive such information electronically; and

• disclosure of the Company’s Corporate Governance practices and communications strategy on the entity’s

internet web-site.

B40. The Board encourages full participation of shareholders at the Annual General Meeting to ensure a high level of
accountability and identification with the Company’s strategy and goals.
Important issues are presented to the
shareholders as single resolutions. In accordance with ASXCGC best practice recommendations, the external
auditor of the Company is also invited to the Annual General Meeting of shareholders and is available to answer
any questions concerning the conduct, preparation and content of the auditor’s report. Pursuant to section 249K
of the Corporations Act 2001 the external auditor is provided with a copy of the notice of meeting and related
communications received by shareholders.

Principle 7 – Recognise and manage risks

Risk Assessment and Management
B41. The Board recognises that there are inherent risks associated with the Company’s operations including mineral
exploration and mining, environmental, title and native title, legal and other operational risks. The Board
endeavours to mitigate such risks by continually reviewing the activities of the Company in order to identify key
business and operational risks and ensuring that they are appropriately assessed and managed. The Board of
Directors believe that consistent with the operations of the Company, its key stakeholders, principally
shareholders, are willing to accept a higher level of risk than may otherwise be expected with other listed
companies in return for higher potential rewards. Nevertheless, the Directors consider that there is value in
formalising a process for monitoring material business risks in order to assist it with its overall responsibility for
mitigating such risks.

CORPORATE GOVERNANCE STATEMENT

B42. The Board has approved a policy manual the contents of which assists with risk mitigation, oversight and
management. However the Board has not to date requested management to formally design and implement a risk
management and internal control system to manage the entity’s material business risks because the Board
considers the size of the Company renders the costs associated with this to be prohibitive. Consequently
management does not currently report to the Board against a formal risk management and internal control
system. Notwithstanding this, the Company has during the year commenced and is currently in the process of
reviewing its risk management system.

B43. Although the Board recognises its ultimate responsibility for risk management and oversight, in discharging its
duties, considerable reliance is placed on information provided by management to mitigate material business
risks. Ramelius does not have a separate Risk Management Committee as the Directors do not consider this
would be efficient given the size of the Board and in view of the size of the Company and the environment in
which it operates. Instead Directors prefer to proactively and continually assess all material business risks as part
of the Board’s overall decision making process. Whilst every effort is made by Directors to weigh up material
business risks against potential rewards in their decision making process, the Board acknowledges that no process
can guarantee elimination of potential material loss.

B44. The Chief Executive Officer and Chief Financial Officer are required to declare to the Board in writing that the
financial records of the Company for the financial year have been properly maintained in accordance with Section
286 of the Corporations Act 2001 the financial statements and associated notes comply in all material respects
with the accounting standards as required by Section 296 of the Corporations Act 2001; and the financial
statements and associated notes give a true and fair view, in all material respects, of the financial position as at
balance date and performance of the Company for the year as required by Section 297 of the Corporations Act
2001. The declarations were provided to the Board in respect of the 2009 financial year. However these officers
are not presently required to state in writing that the integrity of the financial statements are based on a sound
system of risk management and internal control because the Board considers the size of the Company renders
the costs of implementing such systems and controls prohibitive.

Principle 8 – Remunerate fairly and responsibly

Remuneration Policy
B45. In accordance with ASXCGC best practice recommendations, the Company’s remuneration practices are set out

as follows:

Remuneration Practices
B46. The Company’s policy for determining the nature and amounts of emoluments of board members and Key

Management Personnel of the Company is as follows.

B47. The Company’s Constitution specifies that the total amount of remuneration of non-executive directors shall be
fixed from time to time by a general meeting. The current maximum aggregate remuneration of non-executive
directors has been set at $400,000 per annum. Directors may apportion any amount up to this maximum amount
amongst the non-executive directors as they determine. Directors are also entitled to be paid reasonable
travelling, accommodation and other expenses incurred in performing their duties as Directors. The remuneration
of the Managing Director/Chief Executive Officer is determined by the non-executive directors on the Nomination
and Remuneration Committee and approved by the Board as part of the terms and conditions of his employment
which are subject to review from time to time. The remuneration of other executive officers and employees is
determined by the Managing Director/Chief Executive Officer subject to the approval of the Board.

B48. Non-executive director remuneration is by way of fees and statutory superannuation contributions. Non-
executive directors do not participate in schemes designed for remuneration of executives nor do they receive
options or bonus payments and are not provided with retirement benefits other than salary sacrifice and statutory
superannuation.

CORPORATE GOVERNANCE STATEMENT

B49. The Company’s remuneration structure is based on a number of factors including the particular experience and
performance of the individual in meeting key objectives of the Company. The Nomination and Remuneration
Committee is responsible for assessing relevant employment market conditions and achieving the overall, long
term objective of maximising shareholder benefits, through the retention of high quality personnel.
In August
2008, a Nomination and Remuneration Committee was established to assist the Board by overseeing
remuneration policies and make recommendations to the Board. The Company may also engage external
consultants to advise on remuneration policy and to benchmark remuneration of senior executives against
comparable entities so as to ensure that remuneration packages are consistent with the market and are
appropriate for the organisation.

B50. All key management personnel receive a base salary based on factors such as experience, length of service,
superannuation and performance incentives. Performance incentives are generally paid once predetermined key
performance indicators have been met. Key management personnel receive a statutory superannuation
guarantee contribution, however do not receive any other form of retirement benefits. Individuals may elect to
salary sacrifice part of their salary to increase payments towards superannuation. On retirement, key management
personnel are paid employee benefit entitlements accrued to the date of retirement.

B51. To date, the Company has not emphasised payment for results through the provision of cash bonus schemes or
other incentive payments based on key performance indicators. However the Nomination and Remuneration
Committee may recommend to the Board the payment of cash bonuses from time to time in order to reward
individual executive performance in achieving key objectives as considered appropriate by the Nomination and
Remuneration Committee. Cash bonuses paid during the financial year are disclosed in the Remuneration Report.

B52. All remuneration paid to key management personnel is valued at the cost to the Company and expensed.

Employee Incentive Plan
B53. The Company has an Employee Share Acquisition Plan and a Performance Rights Plan which have been
approved by shareholders in November 2007. The Share Acquisition Plan enables the Board to offer eligible
employees as a long-term incentive, ordinary fully paid shares in the Company and in accordance with the terms
of the Plan, shares may be offered at no consideration unless the Board determines that market value or some
other value is appropriate. Any consideration may be by way of interest free loans repayable in accordance with
the terms and conditions of the Plan. The Performance Rights Plan enables the Board to grant Performance
Rights (being entitlements to shares in the Company that are subject to satisfaction of vesting conditions) to
selected key senior executives as a long-term incentive as determined by the Board in accordance with the terms
and conditions of the Plan.

B54. The objective of the Share Acquisition Plan is to align the interests of employees and shareholders by providing
employees of the Company with the opportunity to participate in the equity of the Company as an incentive to
achieve greater success and profitability for the Company and to maximise the long-term performance of the
Company. The objective of the Performance Rights Plan is to provide selected senior executives the opportunity
to participate in the equity of the Company through the issue of Performance Rights as a long-term incentive that
is aligned to the long-term interests of shareholders.

B55. During the year ended 30 June 2009 a total of 72,090 shares with a fair value of $39,650 were issued to employees

under the Employee Share Acquisition Plan.

Performance Based Remuneration
B56. Key Management Personnel receive performance based remuneration as considered appropriate by the
Nomination and Remuneration Committee and the Board. The intention of this remuneration is to facilitate goal
congruence between Key Management Personnel with that of the business and shareholders.

B57. The remuneration policy of the Company has been tailored to increase goal congruence between shareholders,

directors and senior executives. Two methods have been used to achieve this aim.

B58. The first method was the issue of options to Key Management Personnel. During the 2008 financial year a total
of 800,000 options (each exercisable at $1.90 by 30 June 2009) with a fair value of $272,000 were issued to
certain Key Management Personnel. These options were not exercised and lapsed at expiry. No options were
issued to Key Management Personnel during the 2009 financial year.

B59. The second method was through a Performance Rights Plan based on Key Performance Indicators (“KPI’s”) set
by the Board. The KPI conditions attached to the Performance Rights Plan include a vesting period of three years
from grant date (7 April 2008) and a requirement for the Company’s share price to be within the top 40%
comparator group of companies as set by the Board. The Companies in the comparator group are as follows.

CORPORATE GOVERNANCE STATEMENT

Avoca Resources Limited
Alkane Resources Limited
Apex Minerals NL
Barra Resources Limited
Bendigo Mining Limited
Carrick Gold Limited
Citigold Corporation Limited
Crescent Gold Limited

Dioro Exploration NL
Gryphon Minerals Limited
Integra Mining Limited
Monarch Gold Mining Company Limited
Norton Gold Fields Limited
Silver Lake Resources Limited
Tanami Gold NL
Troy Resources NL

B60. During the 2008 financial year a total of 900,000 Performance Rights with a fair value of $576,000 were granted
under the Performance Rights Plan to selected Key Management Personnel. No Performance Rights were granted
during the 2009 financial year. These Rights are recognised on a pro-rata basis over the vesting period. Any Rights
that do not vest on the vesting date will lapse. The Rights are subject to performance conditions which are to be
tested in future financial periods.

B61. The employment conditions of Executive Directors including the Chief Executive Officer and Key Management
Personnel are formalised in contracts of employment. During the year the new employment contracts of the
former Managing Director, Chief Executive Officer and the Chief Financial Officer/Company Secretary were entered
into. The contracts have no fixed term with 3 months and 6 months notice of termination by the executive and
Company respectively. Generally, employment contracts of senior executives enable the Company to terminate
the contracts without cause by providing written notice or making a termination payment in lieu of notice
including a minimum termination payment as provided for under the contracts. However any such termination
payments to officers of the Company are subject to the requirements of ASX Listing Rule 10.19, and in the event
that the value of termination benefits to be paid and the value of all other termination benefits that are or may be
payable to all officers of the Company together exceed 5% of the equity interests of the Company as set out in
the latest accounts given to the ASX, the payment shall be pro-rata based on the maximum total termination
benefits allowable under ASX Listing Rule 10.19. Termination payments are not generally payable on resignation
or dismissal for serious misconduct. Any performance rights or options not vested or exercised before the date
of termination will lapse.

B62. Details of directors’ and executives/officers’ remuneration, superannuation and retirement payments are set out

in the Remuneration Report section of the Directors’ Report.

B63. In August 2008 the Board established a Remuneration Committee to deal with executive performance,
remuneration, recruitment, retention and termination policies for senior management and incentive schemes.
In August 2009 the committee was renamed the Nomination and Remuneration Committee.

B64. The Nomination and Remuneration Committee currently consists of the two non-executive Board directors, Messrs
Kennedy & Nelson, and is chaired by Mr Nelson. Details of these directors’ qualifications and attendance at
meetings are set out in the Directors’ Report section of this report. The Board considers the current composition
of the Nomination and Remuneration Committee is appropriate given the current composition and size of the
Board of Directors.

Products limiting risk
B65. The Company has a policy that Directors should not engage in hedge contracts over securities of the company.

Corporate Governance Statements
B66. Corporate governance statements relating to the following matters are publicly available from the Company’s

website at www.rameliusresources.com.au

• Functions and responsibilities of the Board, Chairman & Managing Director/Chief Executive Officer;
• Board charter;
• Audit Committee charter;
• Nomination and Remuneration Committee charter;
• Code of Conduct;
• Trading Policy;
• Continuous Disclosure;
• Risk oversight and management;
• Products limiting risk.

GLOSSARY OF TERMS

ADSORPTION
The attraction of molecules (of gold) in solution to the
surface of solid bodies (carbon).

BIOTITE
A mineral of the mica group widely distributed in a
variety of rock types.

AEROMAGNETICS
A geophysical technique measuring changes in the
earth’s magnetic field from an airborne craft.

CALCRETE
Soil and superficial material cemented by calcium
carbonate.

AIRCORE
A method of rotary drilling whereby rock chips are
recovered by air flow returning inside the drill rods rather
than outside, thereby providing usually reliable samples.

ANOMALOUS
A departure from the expected norm. In mineral exploration
this term is generally applied to either geochemical or
geophysical values higher or lower than the norm.

ARCHAEAN
The oldest rocks of the Earth’s crust – older than 2,400
million years.

AURIFEROUS
Gold bearing material

AUGER
A screw-like boring or drilling tool for use in clay or soft
sediments.

CARBONATE
A common mineral type consisting of carbonates of
calcium, iron, and/or magnesium.

CHLORITE
A representative of a group of micaceous greenish
minerals which are common in low grade schists and is
also is a common mineral associated with hydrothermal
ore deposits.

CIL CIRCUIT
That part of the gold treatment plant where gold is
dissolved from the pulverised rock and subsequently
adsorbed onto carbon particles from which the gold is
ultimately recovered.

COMPANY
Ramelius Resources Limited (ACN 001 717 540)

COSTEAN
A trench dug through soil to expose the bedrock.

ASX
The Australian Securities Exchange Limited
(ACN 008 629 691)

CU
Copper.

AU
Gold

AZ
Azimuth, a surveying term,
the angle of horizontal
difference, measured clockwise, of a bearing from a
standard direction, as from north.

BASE METAL
Non precious metal, usually referring to copper, zinc and
lead.

BCM
Bank Cubic Metre. Usually refers to the volume of waste
measured in situ.

CUT
A term used when referring to average assays where the
grade of a particularly high-grade interval is reduced to a
lesser value.

DISSEMINATED
Usually referring to minerals of economic interest
scattered or diffused through out the host rock.

DIP
The angle at which rock stratum or structure is inclined
from the horizontal.

DYKE
Tabular igneous intrusive cutting the bedding or planar
features in the country rock.

BERM
A horizontal bench left in the wall of an open pit to
provide stability to the wall.

EL
Exploration Licence.

GLOSSARY OF TERMS

ELA
Exploration Licence application.

EM
Electromagnetic, a geophysical technique used to detect
conductive material in the earth.

EOH
End of Hole.

FAULT
A fracture in rocks along which rocks on one side have
been moved relative to the rocks on the other.

F.C.I.
Free carried interest.

FELSIC
Light coloured rock containing an abundance of any of
the following: - feldspars, felspathoids and silica.

FERRUGINOUS
Containing iron.

FLITCH
A Mining Term for the different levels in an open pit.

GEOCHEMICAL EXPLORATION
Used in this report to describe a prospecting technique,
which measures the content of certain metals in soils and
rocks and defines anomalies for further testing.

GEOPHYSICAL EXPLORATION:
The exploration of an area in which physical properties
(eg. Resistivity, gravity, conductivity and magnetic
properties) unique to the rocks in the area quantitatively
measured by one or more geophysical methods.

g/cc
grams per cubic centimetre

G.I.C.
Gold in circuit

g/t
grams per tonne

GOSSAN
The oxidised, near surface part of underlying primary
sulphide minerals.

GROSS GOLD ROYALTY
A royalty payment based on the total amount of product
(gold) produced.

GRADE
g/t – grams per tonne, ppb – part per billion, ppm – parts
per million.

GRATICULAR BLOCK
With respect to Exploration Licences, that area of land
contained within one minute of Latitude and one minute
of Longitude.

GRAVITY CIRCUIT
Part of the Gold Treatment Plant where gold particles are
accumulated by virtue of their density.

GSWA
The Geological Survey of Western Australia.

ha
Hectare

JORC
The Australasian Code for Reporting of Mineral Resources
and Ore Reserves

km
kilometre

KOMATIITE
An ultramafic rock with high magnesium content extruded
from a volcano.

LAG
A residual deposit remaining after finer particles have
been blown away by wind.

LATERITE
Highly weathered residual material rich in secondary
oxides or iron and/or aluminium.

LEACHWELL
An analytical method.

LODE DEPOSIT
A vein or other tabular mineral deposit with distinct
boundaries.

GLOSSARY OF TERMS

MASSIVE
Large in mass, having no stratification. Homogeneous
structure.

OXIDISED
Near surface decomposition by exposure to the
atmosphere and groundwater, compare to weathering.

MINERALISED
Rock impregnated with minerals of economic importance.

oz
Troy ounces = 31.103477 grams

M TONNES
million tonnes

M
metre

ML
Mining Lease.

MLA
Mining Lease Application.

NATIVE TITLE
Native Title is the recognition in Australian law of indigenous
Australian’s rights and interests in land and waters
according to their own traditional laws and customs. In
June 1992, the High Court of Australia, in the case of
Mabo v Queensland (1992) 175 Commonwealth Law
Reports 1, overturned the idea that
the Australian
continent belonged to no one at the time of European’s
arrival. It recognised for the first time that indigenous
Australians may continue to hold native title. Indigenous
Australians may now make native title claimant
applications seeking recognition under Australian law of
their native title rights.

NATIVE TITLE TRIBUNAL
The Native Title Tribunal set up under the Native Title Act
1993.

Ni
Nickel.

OPEN PIT
A mine excavation produced by quarrying or other
surface earth-moving equipment.

ORE GRADE
The grade of material that can be (or has been) mined
and treated for an economic return.

PEDOGENIC
The development of soil.

PENTLANDITE
An important ore of nickel (FeNi)9S8

PETROLOGICAL
Pertains to a study of the origin, distribution, structure
and history of rocks.

PERCUSSION DRILLING
Method of drilling where rock is broken by the hammering
action of a bit and the cuttings are carried to the surface
by pressurised air returning outside the drill pipe.

Pd
Palladium.

PL
Prospecting Licence.

PLA
Prospecting Licence application

PORPHYRY
A felsic or sub volcanic rock with larger crystals set in a
fine groundmass.

ppb
parts per billion

PRIMARY GOLD
Gold mineralisation that has not been subject
to
weathering processes, as opposed to Secondary Gold.

PROTEROZOIC
The Precambrian era after Archaean.

Pt
Platinum.

OVERCALL
Refers to more metal
anticipated.

(gold) being recovered than

PYRITE
A common, pale bronze iron sulphide mineral.

GLOSSARY OF TERMS

PYRRHOTITE
An iron sulphide mineral.

SILICIFIED
Alteration of a rock by introduction of silica.

QUARTZ
Mineral species composed of crystalline silica.

RAB DRILLING
Rotary Air Blast Drilling: Method of drilling in which the
cuttings from the bit are carried to the surface by
pressurised air returning outside the drill pipe. Most
“RAB” drills are very mobile and designed for shallow,
low-cost drilling of relatively soft rocks.

RC DRILLING
Reverse Circulation Drilling: A method of drilling whereby
rock chips are recovered by air flow returning inside the
drill rods rather than outside, thereby providing usually
reliable samples.

REIDEL FAULT
A slip surface that develops during the early stage of
shearing.

REGOLITH
A layer of fragmented and unconsolidated material that
overlies or covers basement.

STRATIGRAPHY
The study of formation, composition and correlation of
sedimentary rocks.

STRIKE
The direction of bearing of a bed or layer of rock in the
horizontal plane.

SULPHIDES
Minerals consisting of a chemical combination of sulphur
with a metal.

t
tonnes

TEM
Transient Electromagnetic, a geophysical technique used
to detect conductive material in the earth.

TOLL TREATMENT
The treatment of ores where payment is made to the
operator of the treatment plant according to the amount
of material being treated.

RESERVE
The mineable part of a resource to which a tonnage and
grade has been assigned according to the JORC code.

TONNE
32,125 Troy ounces.

RESOURCE
Mineralisation to which a tonnage and grade has been
assigned according to the JORC code.

ROCK CHIP SAMPLE
A series of rock chips or fragments taken at regular
intervals across a rock exposure.

SECONDARY GOLD
Gold mineralisation that has been subject to and usually
enriched by weathering processes.

SEDIMENTARY ROCKS
Rocks formed by deposition of particles carried by air, water
or ice.

SHEAR ZONE
A generally linear zone of stress along which deformation
has occurred by translation of one part of a rock body
relative to another part.

OZ
Troy ounce = 31.103477 grams

TREMOLITE
A pale coloured amphibole mineral.

ULTRAMAFIC
An igneous rock comprised chiefly of mafic minerals.

UNCUT
A term used when referring to average assays where the
grade of a particularly high-grade interval is not reduced
to a lesser value.

VACUUM DRILLING
A method of rotary drilling where the drill cuttings are
recovered inside the drill rods by a vacuum system.

PHOTOGRAPHS & DIAGRAMS

Figure 1 Twin Boom Jumbo underground at Wattle Dam

Figure 2 Wattle Dam Pit and Underground Mine Portal

PHOTOGRAPHS & DIAGRAMS

Figure 3 Waste Dump Rehabilitation

Figure 4A Preparing to go underground

Figure 4 Project Location Plan

PHOTOGRAPHS & DIAGRAMS

Figure 5 Wattle Dam Diagrammatic Long Section showing selected drill intersections

Figure 6 Wattle Dam Mine Portal

PHOTOGRAPHS & DIAGRAMS

Figure 7 Inspecting progress at Wattle Dam

Figure 8 Preparation work for portal development

DIRECTORS’ REPORT

AUDITORS’ INDEPENDENCE DECLARATION

INCOME STATEMENT

BALANCE SHEET

STATEMENT OF CHANGES IN EQUITY

CASH FLOW STATEMENT

NOTES TO THE FINANCIAL STATEMENTS

DIRECTORS’ DECLARATION

INDEPENDENT AUDITOR’S REPORT

SHAREHOLDER INFORMATION

CORPORATE DIRECTORY

Principal Registered Office
Ramelius Resources Limited
140 Greenhill Road UNLEY SA 5061
GPO Box 1373 ADELAIDE SA 5001
Telephone: (08) 8373 6473 / (08) 8373 5588
Facsimile: (08) 83735917
Email: info@rameliusresources.com.au
Website: www.rameliusresources.com.au

Perth Exploration Office
Suite 3, 14 The Avenue
MIDLAND WA 6056
P.O. BOX 1527 MIDLAND WA 6936
Telephone: (08) 9250 6644
Facsimile: (08) 9250 6699
Email: rameliuswa@tpg.com.au

Australian Securities
Exchange Code
RMS: Shares
RMSOC: Options
Listed on Australian Securities
Exchange Limited
Home Exchange: Adelaide
Level 19, 91 King William Street
Adelaide SA 5000

Share Registrar
Location of Share Register
Computershare Investor
Services Pty Limited
Level 5, 115 Grenfell Street
ADELAIDE SA 5000
Telephone: (08) 8236 2300 or
1300 556 161
Facsimile: (08) 8236 2305
Email: info@computershare.com.au

Auditors
Grant Thornton
Chartered Accountants
67 Greenhill Road
WAYVILLE SA 5034

Lawyers
DMAW Lawyers
Level 3, 80 King William Street
ADELAIDE SA 5000

Directors and Senior Management

ROBERT MICHAEL KENNEDY
ASIT, Grad. Dip. (Systems Analysis)
FCA, ACIS, FAIM, FAlCD
Non-Executive Chairman

JOSEPH FRED HOULDSWORTH
Non-Executive Director

REGINALD GEORGE NELSON
BSc (MATHS), FAusIMM, FAICD
Non-Executive Director

IAN JAMES GORDON
BCom, MAICD
Executive Director &
Chief Executive Officer

KEVIN JAMES LINES
BSc (Geology), MAusIMM.
Non-Executive Director

DOMENICO ANTONIO FRANCESE
BEc, FCA, FFin, ACIS
Company Secretary and
Chief Financial Officer

DANNY DOHERTY
BSc, Applied (Mining Engineering)
MAusIMM, Registered
Mine Manager, WA
Operations Manager

ANTONY WEBB
BSc. (Metallurgy)
Process Manager