Resolute's Ravenswood operation in Queensland.
Resolute's Ravenswood operation in Queensland.

UPDATE 2.25pm: Shares in Resolute Mining were firmer after it announced a significant new resource for its Buck Reef West deposit near its Ravenswood operation in Queensland and benefitted from a higher gold price.

Resolute said it had identified a 1.28 million ounce resource at Buck Reef West, 70 per cent of which was in measured and indicated categories comprising 29.4 million tonnes at one gram per tonne gold.

The resources identification follows drilling at Buck Reef West between September last year and May this year.

"The significant new addition delivers substantial growth in Resolute's total resource base in Australia and as such potential for extension to the Ravenswood operation," the company said.

Resolute chief executive Peter Sullivan said the results had the potential to extend gold production at Ravenswood.

The company said it had begun a scoping study to establish an open pit mine design and schedule.

Yesterday Resolute announced it had formally taken control of the Bibiani gold project in Ghana.

Shares in the company were up 2.5 cents, or 3.85 per cent, to 67.5 cents at the close as it and other gold miners benefitted from a rising gold price.

Gold headed for the longest run of weekly advances since March after rising to a two-month high, as expectations that borrowing costs in the US will remain low fuelled demand for bullion as an alternative investment.

The metal for immediate delivery climbed to $US1322.12 an ounce overnight, the highest level since April 15, after a 3.3 per cent jump yesterday that was the biggest increase since September.

Meanwhile shares in Ramelius Resources were placed in a trading halt ahead of a proposed capital raising.

Its shares last changed hands for 9.9 cents.

The West Australian

Popular videos

Compare & Save

Our Picks

Compare & Save

More from The West