Red 5 has scheduled open pit production at the Great Western gold deposit in Western Australia to start in January next year, around nine months after purchasing the site in April.
The Great Western deposit was acquired from Terrain Minerals for $2.5 million, serving as part of Red 5’s plan to expand its mineral resources through the Darlot mining hub.
Red 5 managing director Mark Williams said Great Western would assist the company in ramping down its underground mining operations at King of the Hills as it prepared to construct a new four million tonne a year bulk mining and processing operation.
“Our recent drilling programs have reinforced the quality of the (Great Western) deposit, with in-fill drilling increasing the higher confidence measured and indicated categories within the mineral resource to over 80 per cent,” he said.
“In addition, we are looking forward to seeing results from deeper RC drilling designed to test high-grade gold mineralisation in deeper parts of the Great Western deposit, which currently remains open.”
Red 5 has awarded Emeco subsidiary Pit N Portal with a mining services contract for the Great Western operations.
“We are thrilled to be continuing our partnership with Red 5 on this project and also entering the open cut mining services space with a long-term customer,” Pit N Portal chief executive Steve Versteegen said.
“… This project allows Pit N Portal to perform the open cut operations for Darlot gold mine and provides an opportunity for Pit N Portal to continue with Red 5 when it reviews the potential for an underground accessed via a portal at the base of the pit.”
Ore from Great Western will be trucked 55 kilometres to the Darlot mill for processing.
Red 5 completed a drill campaign at Great Western, which underpinned an updated joint ore reserves commission (JORC) mineral resource estimate of 870,000 tonnes at 2.5 grams per tonne of gold for 70,300 ounces of contained gold.
Red 5 stated this revealed a 13 per cent increase of contained gold over the previous mineral resource estimate. The mineral resource estimate includes both open pit and underground components.
Red 5 has also commenced studies for underground mining activities at Great Western, with plans to proceed to underground orebodies following the completion of the open pit in approximately 13 months.