RED 5 Ltd (ASX: RED) remains on target to complete the final Feasibility Study for the proposed stand-alone integrated bulk open pit and underground mining and processing operation at the King of the Hills (KOTH) Gold Project in Western Australia in the September 2020 Quarter.
The company recently released an updated Mineral Resource for the project comprising 90.7 million tonnes at 1.4g/t Au for an estimated 4.07 million ounces of contained gold.
The updated Resource is based on a A$2,100 optimised pit shell, utilising both Indicated and Inferred Resources, and represents a 31% increase in contained gold over the previous Mineral Resource estimate announced on 20 May 2019. 74% (3.01Moz) of the Mineral Resource estimate is classified in the higher confidence “Indicated Resource” category.
Red 5 Managing Director, Mark Williams, said the company is progressively completing the study milestones for the KOTH Final Feasibility Study.
He said that with the recently completed 4.1Moz Mineral Resource update, followed by a successful $125 million capital raising, Red 5 is building momentum towards the potential development of the KOTH bulk mining project.
“We are achieving progress across multiple workstreams, with the updated Resource model providing the foundation for the completion of final mining and engineering studies.
“Based on the significant increase in the open pit component of the Resource model, which now accounts for over 80 per cent of the total contained ounces, we are progressing with plans for a very large open pit, which has the potential to underpin a robust, large-scale, low-cost mining operation.
“We are also pleased to now have Mr Warren King join the Red 5 team. Warren has already hit the ground running, with a schedule for early works and Project Execution Plan now well advanced.
“We have an active work programme for the remainder of the June 2020 Quarter, with key deliverables to include final mine and infrastructure designs.
“Following completion of the King of the Hills Final Feasibility Study and with the $125 million capital raising undertaken, Red 5 is well placed to rapidly transition to the construction phase of one of Australia’s premier emerging gold projects,” he said.
Meanwhile, the company is assessing Maiden Mineral Resource estimates for key Cerebus-Eclipse and Centauri satellite deposits, located to the north-west of the KOTH Gold Project, as initial open pit mine developments to deliver oxide ore to the proposed Processing Plant in the early stages of a bulk mining operation. Mineral Resource estimates for these deposits are planned to be released in early May 2020.
Drilling and assaying of numerous low-grade stockpiles continued through March 2020 and are expected to be completed by late April 2020. Assays will then be assessed and modelled to determine potential inclusion in future KOTH Mineral Resource models.
Elsewhere, Expressions of Interest for the provision of energy requirements on a Build Own Operate basis have been received from major independent power producers. The 20-25MW power plant design process includes evaluation of the use of renewable energy to complement a gas-fired power station supplied from the nearby Gas Goldfields Pipeline.
