Gold producer Ramelius Resources has commenced mining at the Western Queen South project in Western Australia.

Western Queen South project is located 90 kilometer north-west of its Mount Magnet operation and is expected to produce 23,000 ounces of gold at a head grade of 3.9 grams per tonne of gold.

The company has forecasted that the project has a lifetime of 12 months with Mount Magnet to process the ore produced starting August 2013.

In fiscal 2013-2014, Ramelius aims to increase the production at the Mount Magnet project to 100,000 ounces.

"The Western Queen South project represents the first of a number of smaller high grade satellite deposits to be mined at Mt Magnet which will increase overall grade with the goal of maintaining production from the Mt Magnet operations at the 100,000 oz p.a. mark for the foreseeable future," stated Ramelius in a statement.