Guess which ASX 200 gold stock is marching higher on a 'significant resource upgrade'

ASX 200 investors are bidding up the Aussie gold miner following a sizeable estimated resource increase.

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A high-performing S&P/ASX 200 Index (ASX: XJO) gold stock is marching higher again today.

Shares in the big Aussie gold miner closed on Friday trading for $2.00. At the time of writing, in early morning trade on Monday, shares are swapping hands for $2.03 apiece, up 1.5%.

For some context, the ASX 200 is down 0.1% at this same time.

Investors are bidding up the ASX 200 gold stock after the miner reported on a sizeable resource upgrade at one of its key projects.

Any guesses?

If you said Ramelius Resources Ltd (ASX: RMS), go to the head of the virtual class.

Here's what's happening today.

ASX 200 gold stock gaining on expanded resource

The Ramelius Resources share price is in the green on news the Mineral Resource Estimate for its Eridanus project at the Mt Magnet gold mine in Western Australia has been increased by 64%.

The ASX 200 gold stock said the updated Mineral Resource Estimate now includes the adjacent Lone Pine and Theakston deposits. The MRE also incorporates recent drilling and mining information collected at the sites.

This brings the new estimate to 21 million tonnes at 1.7 grams of gold per tonne for a total of 1.2 million ounces.

The increased MRE has positive implications for both open pit and underground options, which remain available beyond the current open pit. The miner noted that this itself is expected to produce some 300,000 ounces of gold once completed and all stockpiles are processed.

In ongoing exploration at the project to improve the analysis of both mining options, Ramelius plans to kick off a 10,000 metre drill program next month. The drill campaign will include 3,300 metres of diamond drilling,

What did management say?

Commenting on the increased MRE boosting the ASX 200 gold stock today, Ramelius managing director Mark Zeptner said, "In keeping with the previously released Mt Magnet 10-Year Plan, the Eridanus project is expected to figure prominently in one form or another for the entirety of the mine plan."

Zeptner added:

Today's significant resource upgrade, both in terms of tonnes and grade, augurs well for a mine life well beyond 10 years especially if an open pit option is ultimately chosen.

Given the 64% increase is net of depletion and the current open pit will produce over 300,000 ounces once processed, Eridanus is set to become the third one-million-ounce-plus mine in the Mt Magnet field, after Hill 50 & Morning Star.

With today's intraday gains factored in, shares in the ASX 200 gold stock are now up 19% in 2024 and up 45% over the past full year.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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