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- During the June quarter, Red 5 (RED) completes the King of the Hills mine development on time and within budget
- The gold producer achieved first gold pour on June 5 and has since been ramping up mining and processing activities which it says are tracking well
- Additionally, Red 5’s Darlot operations produced nearly 18,600 ounces of gold, bringing total production in FY22 to over 64,600 ounces which was in line with company guidance
- The Darlot processing plant is now under a planned suspension and the underground ore will be trucked to the KOTH plant for processing as part of RED’s transition strategy
- Company shares are down 4.08 per cent to trade at 23.5 cents at 3:55 pm AEST
Red 5 (RED) achieved first gold pour at its King of the Hills (KOTH) operation during the June quarter.
This milestone occurred on June 5 following the commencement of ore processing at the WA-based KOTH development.
Red 5 completed the construction of the $226 million mine development earlier this year which includes over four million tonne per annum processing plant fed by the open pit and underground mine within the KOTH project.
Since first gold pour, the Australian gold producer has been focused on ramping up mining and processing operations which it said are advancing accordingly.
Managing Director Mark Williams said the June quarter was a “defining period” in Red 5’s growth pathway to becoming a mid-tier Australian gold producer.
“The delivery and ramp up to date of the KOTH project, with first gold production achieved on time and on budget, is a huge achievement by our team and business partners,” he said.
“All aspects of the KOTH operation are shaping up well. The open pit and underground mines are now operational, and our processing plant is ramping up towards our target throughput of 4.7Mtpa.”
In addition, Red 5 said its Darlot operations produced 18,586 ounces of gold which is an uplift from the 13,185 ounces produced in the March quarter. This brought total production in FY22 to 64,667 ounces at an all-in sustaining cost of $2479 per ounce which was in line with RED’s guidance.
The company plans to report on its production and cost guidance for 2023 once the KOTH operation is in steady state production which is expected before the end of this year.
The Darlot processing plant is now under a planned suspension and the underground ore will be trucked to the KOTH plant for processing.
Red 5 said the “modern and highly efficient” KOTH processing hub will deliver a step-change in operating costs to support growth and development over the next decade.
At the end of the quarter, Red 5 has $55.6 million in cash and equivalents.
Company shares were down 4.08 per cent to trade at 23.5 cents at 3:55 pm AEST.
