Red 5 has announced that its Western Australian gold mine, King of the Hills (KOTH), has achieved a second consecutive month of record gold production.
The mine produced 18,633 ounces of gold in April, up from the previous record of 17,550 ounces in March.
The gold recovery for April was at a record 94.2 per cent.
Gold production for May is also expected to perform well, but is anticipated to be lower than April due to planned maintenance shutdowns on the crusher and mill at the site.
In February this year, Red 5 announced the launch of an $80 million capital raise for two-tranche share placement of new fully paid ordinary shares.
The raise is being used to strengthen Red 5’s balance sheet in support of operations at KOTH.
“Following the (share) placement, Red 5 will have a strong balance sheet with financial flexibility and a robust platform for growth,” Red 5 managing director Mark Williams said at the time.
“Studies are underway to evaluate an expansion of the KOTH process plant and open pit mine for future growth.”
KOTH has had a bumper 2023, with Red 5 delivering a record 13,534 ounces in January, an increase on the December quarter.
“King of the Hills is an enormous orebody with significant areas remaining relatively undrilled, providing excellent potential for continued growth,” Williams said.
The mine also saw impressive drilling results in February, with the project returning significant mineralisation.
“These impressive drill results provide further support for our mine plan over FY23 and FY24, as well as opening up potential new mining areas for the future,” Williams said.
“King of the Hills is an enormous orebody with significant areas remaining relatively undrilled, providing excellent potential for continued growth.”