THE DRILL SERGEANT: Red 5 Limited (ASX: RED) announced maiden JORC 2012-compliant Mineral Resource estimates for the Cerebus-Eclipse and Centauri near-mine deposits at the company’s King of the Hills (KOTH) gold mine in Western Australia.
Red 5 have placed some importance on these satellite deposits within its proposed mining strategy for the KOTH project, as it considers they could hold potential to provide open pit mill feed and cash flow in the early stages of a proposed bulk mining operation.
The numbers stack up as follows:
Cerebus-Eclipse: Indicated and Inferred Resource of 2.8 million tonnes at 1.2 grams per tonne gold for 112,000 ounces; and
Centauri: Indicated and Inferred Resource of 1.7 million tonnes at 1.5g/t gold for 81,300 ounces.
Combined with previously reported Mineral Resource estimates for the near-mine Rainbow and Severn deposits in May 2019, the Cerebus-Eclipse and Centauri Mineral Resources bring the company’s total Satellite Open Pit Mineral Resource base at KOTH to approximately 308,200 ounces.
“Delivering strong Mineral Resources at both Centauri and Cerebus-Eclipse is another big step forward for our bulk mining strategy,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.
“These deposits have the potential to deliver early mill feed and cash flow from shallow open pits which can be accessed and developed relatively quickly during the early stages of bulk mining operations.
“In addition, we see the potential to continue to expand our Satellite Open Pit Resource inventory, with regional drilling underway to progressively test key targets – including at Cerebus-Eclipse and Centauri – each of which has the potential to yield further Resources.”