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Ramelius Resources has secured the relevant statutory approvals to mine at its Kathleen Valley gold project, located 50km north of Leinster in Western Australia.

The company will immediately start site mobilisation and infrastructure work, with plans to commence open pit mining in early July.

First ore from Kathleen Valley project will be trucked to the Checker mill at Mt Magnet in the September quarter.

Ramelius CEO Mark Zeptner said: "As planned, a key element of our production strategy has fallen into place with final approvals received from the relevant authorities, allowing project commencement in the current June 2015 Quarter.

"In the current environment, it is pleasing to be able to kick-off a new project with the associated employment and royalty benefits for the state, as well as the strong early cashflows that a high-grade, low-cost gold project like Kathleen Valley will deliver."

"It is pleasing to be able to kick-off a new project with the associated employment and royalty benefits for the state,"

The company has awarded a $17m (€12.02m) contract to Watpac Civil & Mining for mining services at its Kathleen Valley projec, and mobilisation works are already underway.

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Ramelius said it is in negotiations with preferred providers to finalise related contracts and agreements.

"Ramelius also looks forward to finalising arrangements for the nearby Vivien gold project, to allow for formal underground mining commencement, in the near future," Zeptner added.

The company acquired the Kathleen Valley project from Glencore subsidiary Xstrata Nickel operations in September last year.

Infill drilling on the project conducted in November 2014 has upgraded the inherited mineral resource to 1.8 million tonnes the rate of 2.8g/t for 163,000oz, from 1.44 million tonnes at the rate of 2.8g/t for 130,000oz.

A feasibility study forecasts all-in sustaining costs of $936 per ounce and undiscounted cashflow of A$27.8m (€19.6m).