Western Australian gold company Red 5 has finalised its acquisition of the Darlot mine and the King of the Hills project in the state’s Eastern Goldfields.
Red 5 acquired Darlot from South Africa’s Gold Fields and King of the Hills from WA-based Saracen Mineral Holdings, respectively, for a combined $34.5 million in cash and shares.
The acquisition provides Red 5 with the opportunity to take over operations at the Darlot processing facility, while also tentatively planning to launch operations at King of the Hills by November 2017 — resulting in significant stock market growth for the emerging company.
Darlot and King of the Hills are both in the Leonora-Leinster mineral district, which Red 5 hopes will provide valuable growth opportunities as an aspiring gold producer.
Red 5 hopes to extend the life of the Darlot mine through increased resource recovery, and with the addition of mining operations at King of the Hills, to hit the processing plant’s capacity of 830,000 tonnes per annum.
The company is employing mining contractors to review plans for the facilities; with Darlot having undergone a recent seismic survey it hopes to commence drilling of newly identified targets in the first half of 2018.
Ore samples for the purpose of leach testing has started at King of the Hills, with results expected by December.
Red 5 managing director Mark Williams said of the deal: “The completion of these transactions marks a significant milestone for Red 5, providing the company with immediate gold production and cash-flow in one of Australia’s most exciting gold provinces, plus an outstanding growth pipeline which starts with an immediate satellite mining opportunity at King of the Hills but also includes numerous near-mine and regional resource development and exploration opportunities.”