Join our daily newsletter At The Bell to receive exclusive market insights
- Red 5 (RED) has received further outstanding results from drilling at its King of the Hills gold mine in Western Australia
- The company recently completed an extensive drilling program and uncovered up to 78 grammes per tonne of gold
- In a busy day for Red 5, it also announced an update to its mineral resource estimate
- This updated estimate is essential in completing the final feasibility study for the project
- Red 5 says the study is now well advanced and is on schedule for completion in the September 2020 quarter
- The company is up a slight 2.44 per cent on the market today and shares are trading for 21 cents each
Red 5 (RED) has received further outstanding results from drilling at its King of the Hills gold mine in Western Australia.
The company has recently completed an extensive drilling program comprising of in-fill drilling, underground diamond drilling, and surface reverse circulation (RC) drilling.
King of the Hills is located 80 kilometres south of Red 5’s Darlot Gold Mine and 28 kilometres north of Leonora in the Eastern Goldfields region.
Mining at King of the Hills has traditionally been focused on extracting high-grade gold veins, however, since Red 5 began mining in January 2018, potential has been identified to economically extract significant qualities of lower-grade gold mineralisation, which is located between the high-grade veins.
This recently completed drilling focused on the Regional Lode, Western Tension Veins, Eastern Tension Veins, the new structural corridor, the eastern area between the Osha and Eastern Flanks, and beneath the South Pit.
Two new mineralised structures were also identified; the Drone and Stark Lodes.
Structural interpretation is ongoing and follow-up in-fill and extensional drilling in this area is expected to begin shortly.
Significant assay results from this program include 0.3 metres at 78.7g/t gold, 2.8 metres at 33.2g/t gold, 7.5 metres at 28.4g/t gold, and one metre at 25g/t gold.
Red 5’s Managing Director Mark Williams said these latest assay results demonstrate the significant potential to grow the existing mineral resource at King of the Hills.
“These represent the latest assay results to be received from King of the Hills and include new, high-grade results both inside and outside the pre-feasibility study pit shell,” Mark said.
“The integration of all the drilling data that has been generated over the past 12 months has been included in the King of the Hills March 2020 mineral resource estimate,” he added.
Red 5 also announced today an update to its mineral resource estimate.
King of the Hills has an existing mineral resource estimate totalling 3.1 million ounces of contained gold, however, the new indicated and inferred resource now sits at 90.7 million tonnes at 1.4g/t gold for 4.07 million ounces of contained gold.
Of the new estimate, 74 per cent, 69.8 million tonnes at 1.3g/t gold for 3.01 million ounces of contained gold, is classified in the higher-confidence indicated category while the remainder is in the inferred category.
Indicted mineral resources are economic mineral occurrences that have been sampled from locations such as outcrops, trenches and drill holes to a point where an estimate can be made of the contained metals, grades and physical characteristics.
Inferred resources are based on limited sampling and reasonably assumed, but limited, information. Samples can also come from trenches, drill holes or outcrops.
This updated mineral resource estimate essential in completing the final feasibility study for King of the Hills. This study is now well advanced and is on schedule for completion in the September 2020 quarter.
“Based on this updated resource model, we continue to forge ahead with the final components of the bulk mining feasibility study, including mining and engineering studies and an updated ore reserve,” Mark commented.
“These work programs are on track to deliver the final feasibility study on schedule in the September 2020 quarter,” he concluded.
Red 5 is up a slight 2.44 per cent on the market today and shares are trading for 21 cents each at 12:17 pm AEDT.
