Red 5 has awarded a contract to MLG Oz for integrated haulage and road maintenance services at the King of the Hills (KOTH) gold project in Western Australia.
The KOTH processing facility has a capacity of four million tonnes per annum and will receive ore from Red 5’s Darlot and Greater Western operations from the June quarter of 2022.
MLG will be tasked with hauling this ore between the operations in the Eastern Goldfields.
MLG founder and managing director Murray Leahy said he was glad to be a part of Red 5’s evolution into an operational gold miner.
“We are very pleased to be given the opportunity to continue to support and grow with Red 5 which has been a long-standing customer of MLG,” Leahy said.
“The KOTH project and Darlot expansion are very exciting opportunities for Red 5 and we look forward to supporting the company in developing its regional hub.”
The contract will double MLG’s annual revenue with Red 5 from about $10 million to $20 million over the two-year term, with the option for Red 5 to extend for a third year.
Red 5 recently achieved several milestones at KOTH on its way to producing first gold in the June quarter.
Commissioning of the crushing circuit began as well as powering up of the switchroom and installation of all powerline poles was complete.
Earlier in February, Macmahon Contractors commenced open pit mining services for Red 5, beginning a five-year deal that will transition into underground mining in April.
The KOTH gold project is a 2.4-million-ounce resource with a 16-year mine life and construction is now more than 83 per cent complete, according to Red 5.