THE DRILL SERGEANT: Red 5 Limited (ASX: RED) declared a boost for its strategy to develop a stand-alone bulk mining operation at the company’s King of the Hills (KOTH) gold mine, located in the Eastern Goldfields region of Western Australia.
Red 5 reported the boost had come in the form of additional assay results from ongoing underground diamond drilling.
The company completed a 30,000-metre underground diamond drilling program between November 2018 and June 2019, designed to in-fill and extend the current KOTH Mineral Resource totalling 3.1 million ounces of contained gold.
A second and third underground rig commenced on site during the September 2019 Quarter to continue the Resource development program and target the potential for further mineralisation.
These additional rigs brought the company’s expected total underground drilling for FY2020 to 85,000 metres with the program aimed at converting as much of the existing underground Resource into Reserves as possible for the Final Feasibility Study, due in the September 2020 Quarter.
The drilling was also charged with the reassessment of the final pit shape to determine whether more of the underground could be included in the pit due to grade uplift in both the South and North, and extension of the underground Resource along strike and down dip.
The latest results Red 5 has achieved include broad ‘whole-of-hole’ intercepts including:
107.1 metres at 2 grams per tonne gold and 61m at 4.8g/t gold.
High-grade assays were also received, including:
47.9m at 4.1g/t gold and 11.2m at 22.5g/t gold.
The company said the ongoing in-fill drilling continues to reinforce the continuity and tenor of stockwork development at the King of the Hills (KOTH) gold mine, supporting the potential for an open pit mine and strengthening the case for bulk underground mining using long-hole stoping.
“These excellent results not only support our ongoing studies for a proposed bulk open pit operation at King of the Hills but also confirming the strong potential to expand the current 3.1 million-ounce Resource, which is currently open in all directions,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.
“We have a very active drilling program scheduled for the remainder of FY2020, with 85,000 metres of underground diamond drilling in progress, as well as ongoing assaying of historical drill core and a regional drilling program targeting near surface oxide mineralisation.
“Collectively, these programs will underpin future updates to the KOTH Resource and feed into the ongoing Final Feasibility Study for the integrated bulk open pit and underground mining operation which is scheduled for completion by the September 2020 Quarter.”