Red 5 remains on track to complete the final feasibility studies for the King of the Hills gold mine in Western Australia during the September quarter.
Mining and engineering studies at the proposed open pit and underground mining and processing operation remain on schedule, with some updates expected in June.
Red 5 has commenced an initial review and recruitment drive for an open pit mine planning team ahead of mine pre-strip activities next year.
It has also continued with bulk underground stoping and airleg mining of selective high-grade gold veins at King of the Hills.
Underground ore production from the King of the Hills project averages around 500,000 tonnes per annum, with ore trucked to Red 5’s nearby Darlot processing plant.
Red 5 is also undertaking a final feasibility study for a stand-alone bulk open pit and underground mining and processing operation at King of the Hills.
This follows an updated mineral resource estimate from 3.1 million ounces of contained gold, to an indicated and inferred resource of 90.7 million tonnes at 1.4 grams per tonne of gold for 4.07 million ounces of contained gold.
Red 5 has since advanced its mine planning studies for the open pit and underground mines towards completion in June.
The company also received proposals from several Western Australian-based open pit mining contractors that aligned with the pre-feasibility study (PFS) mining costs.
“In addition to boosting King of the Hills’ satellite deposit Mineral Resources to over 300,000 ounce, the completion of these Mineral Resources estimates has allowed our team to commence mining studies for the inclusion of these deposits in our overall mine plan and schedule,” Red 5 managing director Mark Williams said.
Red 5 engaged GR Engineering Services to take charge of early works tasks. These include ordering long-lead items such as a crusher and mills, final design of bulk earthworks, and tendering and evaluating the supply of transportable buildings.
“This is an exciting time for the company as we move into the final key stages of the final feasibility study and towards its completion and delivery in the September 2020 quarter, paving the way for the development of one of Australia’s premier gold development projects,” Williams said.