KOTH poised for first pour

King of the Hills project. Image: Red 5

Red 5’s plans to deliver Australia’s next major gold mine is well on track.

Boasting a Mineral Resource of 4.12 million ounces, its flagship King of the Hills (KOTH) operation in the eastern Goldfields region of Western Australia taps into one of the top 10 largest ore reserves in the country.

The company’s latest quarterly report anticipates first pour in the June quarter.

The estimated $226 million mine development is underpinned by the construction of a 4.7 million tonnes per annum processing plant, fed by the large open pit and underground mine at KOTH and complemented by a series of smaller satellite pits.

One of these is Darlot underground mine, with three workstreams underway to extend its mine life. The plant mill at the site will progressively scale down, and be suspended before 30 June.

The KOTH workforce will total about 450 people during construction and 300 during operations as the first bar is produced, and will deliver strong benefits to the State’s economy with estimated taxes of $375 million and royalties of $235 million over the initial 16-year mine life.

The miner said the biggest challenge now was the labour shortage that has hampered the industry for the past two years, and the unpredictable impacts of COVID disruptions.

Red 5 has been forced to revise up its full year AISC from $2300-2400 per ounce to between $2400-2500 per ounce, while production guidance remains at 62,000-72,000 ounces.

Red 5 ended the quarter with cash and bullion of $47.7 million, and enterprise value of $1041.1 million.

About Ray Chan

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).

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