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- Red 5 (RED) progresses activities to ramp up production at its King of the Hills (KOTH) gold project in Western Australia
- The company says its processing mill is performing as expected, and its SAG mill has continued to deliver throughput rates of over 600 tonnes per hour
- Meanwhile, mining operations for feedstock at the Darlot gold mine are performing to expectations
- Darlot produced over 64,000 ounces of gold over the 2022 financial year — a result within Red 5’s production guidance, contributing to a positive final quarter of the year
- Shares in Red 5 last traded at 24.5 cents on July 4
Red 5 (RED) has progressed activities to ramp up production at its King of the Hills (KOTH) gold project in Western Australia.
The project was delivered within budget and on time, with commissioning and ramp-up activities now underway following the first gold pour from the project in early June.
Red 5 said its processing mill was performing as expected, and the semi-autogenous grinding (SAG) mill has continued to deliver throughput rates of over 600 tonnes per hour.
The open pit and underground mines at KOTH are now fully operational, and the company has over two months of feedstock ore available.
Meanwhile, the company’s plans to transition the Darlot underground mine into an additional feed source for its KOTH project are progressing, with the trucking of ore to begin in the September quarter.
The Darlot gold mine has met Red 5’s production guidance, producing over 64,000 ounces of gold over the 2022 financial year, and all-in sustaining costs are expected to land within expectations.
To further progress activities, the company has fully drawn down on its $175 million KOTH debt facility and had cash on hand of $55.6 million at the end of June.
Managing Director Mark Williams said he was pleased with how the company’s activities were progressing.
“We now have an excellent platform to embark on this next chapter of Red 5’s growth,” he said.
“The successful ramp-up of production at KOTH will put us on an exciting growth trajectory over the coming quarters, and we look forward to keeping the market informed about our progress during FY23.”
Shares in Red 5 last traded at 24.5 cents on July 4.
