Red 5 Targets History to Expand KOTH Mineralisation

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) recently conducted underground exploration drilling at the company’s King of the Hills (KOTH) gold mine in the Eastern Goldfields region of Western Australia.

Red 5 said the drilling identified a new target area for Resource extensions at the King of the Hills mine by confirming the presence of gold mineralisation more than 470 metres vertically down-plunge to the north of the current 3.1-million-ounce Resource area.

The company explained that drill-hole KHRD0278 was drilled to target previously reported high-grade historical exploration results, which returned a series of high-grade intercepts including 4m at 30.74g/t gold from 588m down-hole (TARD4041) in an area down-plunge to the north of the historical open pit.

KHRD0278 targeted an area within 80m of TARD4041, however it deviated from the original planned course and did not successfully test the intended target.

Red 5 reported that the hole did, however, intersect the prospective granodiorite-ultramafic contact and confirmed that this contact remains mineralised 470m vertically down-plunge to the north of the current Resource area.

The company considers this result supports and enhances the emerging bulk mining opportunity at KOTH, providing a new target for ongoing Resource extension drilling.

Results from KHRD0278 include:

16 metres at 1.24 grams per tonne gold (204m-220m), including 0.34m at 29.3g/t gold;

7.5m at 1.13g/t gold (286m-293.5m), including 0.33m at 14.25g/t gold;

15m at 1g/t gold (407m-422m), including 0.23m at 29.6g/t gold; and

9m at 1.26g/t gold (464.7m-473.8m), including 0.25m at 21.1g/t gold.

“This is an encouraging development, which provides further insight into the broader potential of the KOTH mineralised system developing around the granodiorite contact,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“The underground component of our current Mineral Resource totals 1.11 million ounces of contained gold, which covers around one kilometre of strike.

“The perimeter of the granodiorite is over 12 kilometres, with significant potential for along strike extensions or repeats of the existing Resource.

“Our intention is to progressively extend and test new areas within the granodiorite under the south pit and around the north-eastern and northern section of the granodiorite contact in the coming months, with three diamond rigs now operating on site, bringing our total planned underground drill metres for KOTH to approximately 85,000 metres for FY2020.

“Exploration and Resource in-fill drilling are being undertaken in parallel with the assaying of previously unassayed historical drill core, with all three programs offering the potential to further define and expand the KOTH Resource base.

“We are also forging ahead with a Final Feasibility Study for an integrated bulk open pit and underground mining operation at KOTH, which is scheduled for release in mid-CY2020.”