Ramelius Resources managing director Mark Zeptner is hopeful the gold miner’s Cue project will deliver significant returns long-term.

West Perth-based Ramelius told the market on Tuesday that the project – located 40km north of the company’s Mt Magnet gold mine – had received approval from the Department of Energy, Mines, Industry Regulation and Safety.

Ramelius added Cue to its asset portfolio in September last year, as part of the company’s acquisition of Musgrave Minerals.

The gold miner has conducted a pre-feasibility study on Cue’s open pit facilities – which indicated a total mineral resources estimate of 12 million tonnes of ore at 2.4 grams of gold per tonne for a total of 910,000 ounces.

Additionally, the project’s maiden ore reserve was set at 2.7mt at 2.7g/t for 250,000oz.

Ramelius said its updated mineral resource and reserve estimates didn’t include recent data from its 2024 drilling program, which will be incorporated and released later this year.

As it stands, upfront capital cost sits at $26.6 million, at all-in sustaining cost of $1,585/oz.

“The Cue project will deliver ore to the Mt Magnet hub in parallel with the Penny high grade ore,” Mr Zeptner said.

“This high margin combination will deliver significant returns with our cash balance already exceeding $500 million. Additional underground potential still remains at both Cue and Penny.”

Earlier this month, Ramelius provided an update regarding its Erdianus project, located at its Mt Magnet operation – with its mineral resource estimate increasing by 64 per cent to 1.2 million oz.

Ramelius closed trade on Monday at $1.95 per share.