Gold miner Ramelius Resources has begun mining at its Western Queen South project in a bid to boost production to 100,000 ounces a year.

The high-grade open pit project at Western Queen South is 90km north-west of the company’s Mt Magnet gold operation in central Western Australia.

The Perth-based company expects the mine to produce about 23,000 ounces of gold during its 12-month life.

Ore from the mine will be delivered to Mt Magnet for processing from August, lifting Ramelius’ overall gold production for the 2013/14 financial year.

“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 ounce per annum mark for the foreseeable future,” the company said in a statement on Tuesday.

Last month, Ramelius posted a $5.7m first-half loss, reversing the $16.14 million interim net profit it made the previous year.

Shares in Ramelius were 1.25 cents lower at 36.25 cents at 1300 AEDT.