Ramelius Resources expects to reach full production at its flagship Mt Magnet operation by the end of the year after boosting gold production by 15 per cent in the quarter.

The WA gold miner produced a total 20,066 ounces of gold for the September quarter, but production at its Wattle Dam operation fell as grades of remaining ore sources decreased.

Ramelius shares rose one cent, or 2.6 per cent, to 40 cents at 1430 AEDT on Monday.

The company said gold production at Mt Magnet increased to 12,173 ounces, up from 10,548 ounce in the quarter at a cash cost of $1,203, which was down from $1,551 in the same quarter.

“Mt Magnet continued its ramp up to full production, which is expected in December 2012,” Ramelius said in a statement.

Production at Wattle Dam mine continued above expectations, with 7,714 ounces of gold produced for the quarter at a cash cost of $1,168.

Ramelius shares have fluctuated wildly over the past year, after reaching a high of $1.32 in December, 2011.

On Monday, the company declared current cash and gold on hand of $55.5 million.

Ramelius plans to produce 23,000 ounces of gold per year with the expansion of its second operation at Mount Magnet.

Production guidance for Mt Magnet for the December 2012 quarter is 15,000 ounces.

Last month Ramelius said it will add the Western Queen South open pit gold deposit, 90 km north-west of its Mount Magnet mine, to its production at Mt Magnet.

The company said it will be milled at Mt Magnet in the 2013-14 financial year.

Mining at Western Queen South is expected to commence in January 2013 after approval for development was granted during the quarter.