THE BOURSE WHISPERER: Red 5 Limited (ASX: RED) achieved two major milestones in the development of the company’s 2.4 million ounces King of the Hills (KOTH) gold project in Western Australia.
Red 5 has had its KOTH Mining Proposal approved by the WA Department of Mines, Industry Regulation and Safety (DMIRS), being the final permit required for the restart of mining activities to proceed in 2022.
The company has also approved Phase 2 of the Engineering, Procurement & Construction (EPC) contract, allowing EPC contractor, MACA Interquip (ASX: MLD), to ramp-up the mobilisation of its construction teams.
“The KOTH construction and development teams are continuing to achieve solid progress, with the overall project under budget and on track to deliver first gold production on schedule by mid-2022,” Red 5 managing director Mark Williams said in the company’s ASX announcement.
“The manufacture and delivery to Australia of all key long-lead items for the plant is also well on track, which will help to ensure that key construction and installation milestones can be achieved once construction of the plant moves into full swing in the second half of this year.
“We are very encouraged by the important milestones being achieved, and we are looking forward to the next step-up in activities during the June 2021 Quarter as the key elements of this new large, long-life Australian gold mine continue to take shape.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE