Red 5 Continues to Advance King of the Hill Final Feasibility Study

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) reported continued progress with the Final Feasibility Study (FFS) for the proposed stand-alone integrated bulk open pit and underground mining and processing operation at the company’s King of the Hills (KOTH) gold project in Western Australia.

Red 5 has had multiple work streams progressed with work on stream to meet the overall delivery schedule on track for completion in the September 2020 Quarter.

The underground component of the KOTH resource of 17.5 million tonnes at 2 grams per tonne gold for 1.11 million ounces of contained gold has previously been identified as a key underground mine extension opportunity for the project.

AS such, three diamond drill rigs are currently progressively exploring multiple extensional opportunities to the existing underground operations.

The company has been encouraged by interim and geological modelling that provide increasing confidence in a potential uplift to the existing Resource.

In-fill RC drilling of the western crest of the KOTH open pit has been completed with the aim of evaluating the potential for Resource extension and assist further pit optimisation works.

In-fill drilling at the prospective Cerebus-Eclipse and Centauri near-mine satellite deposits to the north-west of the KOTH open pit is continuing and remains on track for completion in January 2020.

Geotechnical core drilling and test pitting programs have been completed in the open pit and for key project infrastructure, such as the process plant and village accommodation.

Geotechnical, hydrogeological and metallurgical diamond drilling at the Cerebus-Eclipse, Centauri and Rainbow satellite deposits is scheduled to commence in late January 2020.

Field works have largely been completed for flora, fauna, archaeology and anthropology surveys.

“Geotechnical, resource extension and resource in-fill drilling programs are in full swing again following a short break for the festive season,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“We expect to receive further results from underground extensional drilling and ongoing assaying of previously un-assayed historical drill core from KOTH, which will be progressively incorporated into an updated KOTH geological model.

“Infrastructure design, metallurgical testwork design and permitting, approvals and stakeholder engagement programs are also moving forward well as planned.

“This is a very exciting time for Red 5, as we work towards the delivery of a Final Feasibility Study for a major new stand-alone gold project at King of the Hills later this year, laying the foundations for Red 5 to take its next major growth step as a leading Australian gold producer.”