Red 5 Limited (ASX: RED) has completed maiden JORC 2012 Mineral Resource estimates for the Cerebus-Eclipse and Centauri near-mine deposits at the King of the Hills (KOTH) gold mine in Western Australia.
Managing Director, Mark Williams, said these satellite deposits are an important element of Red 5’s proposed mining strategy for the KOTH Project, with the potential to provide open pit mill feed and cash flow in the early stages of a proposed bulk mining operation.
Mr Williams said the continued growth in the company’s Satellite Open Pit Mineral Resource base is an important part of delivering its proposed broader bulk mining strategy at King of the Hills.
“Delivering strong Mineral Resources at both Centauri and Cerebus-Eclipse is another big step forward for our bulk mining strategy. These deposits have the potential to deliver early mill feed and cash flow from shallow open pits which can be accessed and developed relatively quickly during the early stages of bulk mining operations.
In addition, we see the potential to continue to expand our Satellite Open Pit Resource inventory, with regional drilling underway to progressively test key targets – including at Cerebus-Eclipse and Centauri – each of which has the potential to yield further Resources,” he said.
Together with the previously reported Mineral Resource estimates for the near-mine Rainbow and Severn deposits, the Cerebus-Eclipse and Centauri Mineral Resources bring the company’s total Satellite Open Pit Mineral Resource base at KOTH to approximately 308,200 ounces.
RED believes that the Cerebus-Eclipse and Centauri deposits are both located on the Ursus Fault and may potentially form part of the same mineralised system. The Ursus Fault trend is highly prospective, with a significant portion remaining untested.
The two deposits are approximately 2km apart and assay results from broad-spaced 200m x 80m Reverse Circulation drilling conducted between the deposits show anomalous gold values along the Ursus Fault zone.
Cerebus and Centauri remain open to the north-west, south-east and down-dip with good potential to develop underground Mineral Resources. The Eclipse deposit is open to the north.