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Red 5 Completes Great Western Acquisition

THE BOURSE WHISPERER: Red 5 Limited (ASX: RED), through its wholly-owned subsidiary, Darlot Mining Company Pty Ltd, has exercised an Option Agreement to acquire a 100 per cent-interest in Mining Lease M37/54.

The Mining Lease includes the Great Western gold deposit.

Red 5 has executed a Sale and Purchase Agreement (SPA) with the tenement holder, Terrain Minerals (ASX: TMX).

The company believes the acquisition supports its stated multi-strand strategy to expand the Darlot Mineral Resource base, which includes regional ‘bolt-on’ acquisitions in addition to aggressive exploration being undertaken as part of its Darlot Mining Hub Strategy.

The Great Western gold deposit is located 80 kilometres trucking distance south of Red 5’s Darlot processing plant, which is currently operating at one million tonnes per annum.

Red 5 considers the acquisition of the Great Western gold deposit and surrounding Mining Lease represented a high-quality strategic addition to its Mineral Resource base within trucking distance of the Darlot mill.

Terrain Minerals had previously completed a JORC 2012-compliant Mineral Resource estimate for the Great Western deposit totalling 709,000 tonnes at an average grade of 2.7 grasm per tonne gold for 62,000 ounces of contained gold.

“Having completed the due diligence drilling, we believe the Great Western deposit represents a highly prospective addition to our Darlot Mining Hub Strategy, with an existing 62,000 ounce Mineral Resource and exploration upside, particularly at depth,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“With an acquisition cost of $40 per Resource ounce, it boosts our Mineral Resource base within economic trucking distance of the Darlot mill.

“We will continue to seek further such opportunities – both through our exploration programs as well as through strategic acquisitions – with the aim of establishing five to ten years of Ore Reserves either at or within trucking distance of the Darlot mill as part of the company’s Darlot Mining Hub Strategy.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

Red 5 Completes $125M Raising to De-Risk KOTH

THE BOURSE WHISPERER: Red 5 Limited (ASX: RED) bucked recent trends by announcing a $125 million share placement to sophisticated and professional investors.

Red 5 made the placement at a price of 18 cents per share, saying that it would underpin the company’s next pivotal phase of its growth pathway to becoming a multi-asset, mid-tier Australian gold producer.

Red 5 declared the Placement de-risks the funding requirements to develop the proposed integrated bulk open pit and underground mining and processing operation for the King Of The Hills (KOTH) gold project in Western Australia, where a Final Feasibility Study is due for completion in the September 2020 Quarter.

“We are delighted with the strong support received from existing and new investors, particularly given the current challenging equity market environment,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“In particular, I would like to thank our existing shareholders for their ongoing support and welcome a number of new institutional investors to our register.

“This strong outcome reflects the market’s confidence in the growth pathway we have mapped out, which will see Red 5 evolve into a multi-asset, mid-tier gold producer over the next two years.

“The capital raising significantly de-risks our funding requirements at King of the Hills, which is now well established as one of Australia’s premier emerging gold projects.”

 

Email: info@red5limited.com

Web: www. red5limited.com

 

Red 5 Makes Progress on KOTH FFS

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) made sure everybody remains up to speed with progress of the Final Feasibility Study (FFS) that is underway at the company’s King of the Hills (KOTH) gold project in Western Australia.

Red 5 declared it has made substantial progress across all workstreams to facilitate the completion of the FFS, which is due in the September 2020 Quarter is for the proposed stand-alone integrated bulk open pit and underground mining and processing operation at King of the Hills.

The company explained that results from assaying of some 32,000 metres of historical diamond drilling core, together with results from ongoing underground drilling programs, will underpin the completion of an update to the current 3.1 million ounces Mineral Resource estimate for KOTH.

This update is now expected to be delivered earlier than forecast and reported this month.

“We have completed a significant amount of work already, with the next major deliverable to be an update to the current 3.11 million ounce Mineral Resource estimate, which we expect to be able to report this month,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“The Resource model will enable us to finalise mine planning and the completion of an updated bulk open pit and underground Ore Reserve for King of the Hills.

“We are delighted to have appointed an experienced Construction Manager who will join the team later this month.

“We are also close to finalising the infrastructure and site layout, with results from sterilisation drilling expected shortly.

“A clear pathway for project approvals has been defined with no significant hurdles expected given this is a brownfields mine development with a long operating history.

“Collectively, these programs put us well on track to complete the Final Feasibility Study for the integrated bulk open pit and underground mining operation in the September Quarter 2020.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

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Ramelius Resources Makes Move on Spectrum Metals

THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) and Spectrum Metals (ASX: SPX) have struck a Bid Implementation Agreement (BIA) that will result in Ramelius offering to acquire all of the issued and outstanding ordinary shares in Spectrum that it does not already own.

Red 5 Increases Darlot Reserve and Resource Estimates

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) updated the JORC Code 2012-compliant Ore Reserve and Mineral Resource estimates for the company’s Darlot gold mine in Western Australia.

 

Red 5 Increases Darlot Reserve and Resource Estimates

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) updated the JORC Code 2012-compliant Ore Reserve and Mineral Resource estimates for the company’s Darlot gold mine in Western Australia.

Red 5 has increased the contained ounces at the Darlot mine with the updated Proven and Probable Ore Reserve for the mine now totalling 2.6 million tonnes at 3.3 grams per tonne gold for 275,000 ounces of contained gold.

This represents a 26 per cent increase in contained ounces for Darlot since 30 June 2019, net of mining depletion of 37,738 ounces to 31 December 2019.

“Darlot is an exceptional gold system and our ongoing Resource and Reserve development programs are delivering growth across multiple fronts,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“This announcement is part of a number of workstreams currently underway to progress Red 5’s Darlot Hub Mining Strategy, which is aimed at establishing a five to ten year mine life at Darlot, as a stand-alone mining operation, complementing the proposed development of King of the Hills and establishing two growth pillars of a leading mid-tier Australian gold producer.

“When Red 5 purchased the Darlot Gold Mine in 2017, the acquisition included a significant high-grade non-JORC mineral endowment that required review, confirmation and design by our Geology and Mining Engineering team before it could be included within our Resource and Reserve estimates.”

Red 5 explained that the increase in the Reserve base is due to it having completed mining studies to confirm suitable mining methods to extract gold mineralisation within the Centenary orebody along with areas that had previously been classified as sterilised and/or not economical.

“This includes areas deemed by the previous owner to have been sterilised, together with additional areas – including several oxide open pit deposits – that were modelled but never upgraded to JORC compliance,” Williams said.

“Red 5 has been working to convert these areas to Resource and Reserve status, with the work completed to date, together with extensional drilling at Lords Felsics, increasing our Reserve base by 26 per cent to 275,000 ounces and our Resource base by 16 per cent to 1.2 million ounces since the previous estimates reported as at 30 June 2019, net of the ounces produced up to 31 December 2019.”

The Ore Reserve is based on an updated Measured, Indicated and Inferred Mineral Resource for the Darlot gold mine of 10.8 million tonnes at 3.5g/t gold for 1,203,900 ounces of contained gold – representing a 16 per cent increase in contained ounces since the previous Resource estimate the company reported as at 30 June 2019 (net of mining depletion).

This Total Resource figure includes an updated underground Mineral Resource of 8.1 million tonnes at 4.3g/t gold for 1,122,000 ounces of contained gold (at a 2g/t gold cut-off grade), and a maiden open pit Mineral Resource of 2.7 million tonnes at 0.9g/t gold for 81,600 ounces of contained gold (at a 0.5g/t gold cut-off grade).

“Importantly, we also see opportunities for further growth,” Williams continued.

“We have recently increased our budget for Darlot expansion programs in FY20, committing an additional $2.3 million for Resource drilling as well as $2 million to accelerate underground mine development to access new mining areas and open up new underground exploration platforms.

“This brings our total geology budget for Darlot to $10.1 million for current financial year.

“Work programs include 12,500 metres of underground drilling and 6,000 metres of surface drilling at the Darlot mine, as well as an 11,000 metres regional drilling program, with processing studies also underway with the goal of extending our Reserve base within trucking distance of the Darlot mill.

“With the Final Feasibility Study well advanced for the establishment of a stand-alone mining and processing operation at King of the Hills, this would potentially provide Red 5 with two high-quality, long-life mining hubs in the world-class Eastern Goldfields region of Western Australia.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

THE DAILY ROADHOUSE

 

Encounter Resources Intersects Tanami Bedrock Gold

THE DRILL SERGEANT: Encounter Resources (ASX: ENR) reported on recent drilling activities undertaken at the Afghan and Mojave prospects in the Tanami region of Western Australia with Joint Venture partner Newcrest Mining.

Red 5 Continues Growth at King Of The Hill

THE DRILL SERGEANT: Red 5 Limited declared its decision in the December 2019 Quarter to boost underground drilling capacity at the company’s King of The Hill (KOTH) project in Western Australia with three diamond rigs, has paid off.

Peel Mining Drills New Southern Nights Gold Zone

THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported the discovery of strong gold mineralisation associated with a new high-grade zone at the southern end of the Southern Nights deposit from the recent resource upgrade drilling program at the company’s 100 per cent-owned Wagga Tank-Southern Nights project, located south of Cobar in western New South Wales.

Neometals Produces High Purity Dioxide Hydrolsate

THE BOURSE WHISPERER: Neometals (ASX: NMT) has successfully produced high purity (>98%) titanium hydrolysate (hydrated titanium dioxide ‐ TiO2.2H2O) from the titanium recovery stage of the Australian pilot plant trial at the company’s Barrambie titanium and vanadium project in Western Australia.

Magnetic Resources Encounters Encouraging Gold Results at Lady Julie

THE DRILL SERGEANT: Magnetic Resources (ASX: MAU) has completed an initial RC drilling program at the Lady Julie project, not far from the company’s Hawks Nest 9 project, located near Laverton in Western Australia.

 

Red 5 Continues Growth at King Of The Hill

THE DRILL SERGEANT: Red 5 Limited declared its decision in the December 2019 Quarter to boost underground drilling capacity at the company’s King of The Hill (KOTH) project in Western Australia with three diamond rigs, has paid off.

Red 5 reported the drilling has produced results that add further confidence to the Final Feasibility Study (FFS) it currently has underway for KOTH.

The latest broad ‘whole-of-hole’ intercepts include:

190.6 metres at 1.3 grams per tonne gold
231m at 1.2g/t gold and
58m at 4.1g/t gold.

Extensional drilling delivered widths of up to:

57.3m at 2.3g/t gold outside of the existing 3.1-million-ounce Resource envelope, together with high-grade intersections, including:

15.9m at 34.5g/t gold and
18.2m at 11.5g/t gold.

“The 85,000-metre underground drilling program is progressing strongly with approximately 60 per cent of the program completed,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“The volume and quality of the data being generated are progressively being fed into an updated Resource model, that will underpin an update to the current 3.1-million-ounce Mineral Resource as part of the FFS on an integrated bulk open pit and underground mining operation due to be released in the September 2020 Quarter.

“Importantly, the results continue to contribute towards achieving the three outcomes we are targeting – namely, to convert as much of the existing Underground Resource into Ore Reserves as we can for inclusion in the FFS, to reassess the final shape of the open pit, and to identify extensions to the underground Resource both along strike and down-dip.

“In-fill and grade control drilling is also delivering positive results by reinforcing the continuity and tenor of the stockwork development zones, which have formed part of our transition to bulk underground mining program and will provide us greater confidence for the future.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

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Blackstone Minerals Hits Big Numbers at King Cobra Discovery

THE DRILL SERGEANT: Blackstone Minerals (ASX: BSX) announced impressive drilling intersections from the King Cobra discovery at the company’s Ta Khoa nickel project in Northern Vietnam.

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.

PolarX Identifies Mineralised Alaskan Strike Potential

THE DRILL SERGEANT: PolarX Limited (ASX: PXX) has identified potential for approx. 600 metres of mineralised strike length at the Zackly East Skarn within the company’s Alaska Range project.

Alloy Resources Reports on RTX JV Activity

THE DRILL SERGEANT: Alloy Resources (ASX: AYR) reported on recent progress at the company’s farm-in agreement with Rio Tinto Exploration Pty Limited (RTX), under which RTX is earning an initial 70 per cent interest in E45/4807 in the Paterson Province of Western Australia.

 

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.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

Red 5 to Conduct Resource Drilling at Darlot Gold Mine

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) is soon to commence a new program of exploration and resource drilling to test a series of priority gold targets located within an economic trucking radius of the company’s Darlot gold mine in Western Australia.

Red 5 indicated the program will test gold targets located at the Cables and Mission and Great Western gold deposits which are both subject to recent Option Agreements, as well as the Taranaki Trend, the Ockerburry Project and the Darlot Project tenements.

“The new regional surface drilling program at Darlot is an important addition to our already expanded drilling program for FY2020 – which includes a previously announced budget of 120,000 metres of planned drilling across the King of the Hills and Darlot assets,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“The addition of over 11,000 metres of surface exploration and resource drilling reinforces our commitment to delivering growth through exploration.

“Following the recent Option Agreements for two ‘bolt-on’ resources at Great Western and Cables and Mission as part of the Darlot Mining Hub Strategy, we now have an expanded pipeline of exciting targets to test within an economic trucking radius of the Darlot Mill.

“These programs have the potential to quickly grow our resource base, make new discoveries and provide us with further targets for future follow-up.

“This multi-pronged strategy is consistent with our objective to meaningfully increase the mine life of the Darlot Operation – as part of our overall target of having two long-life, high-quality gold production centres operating in parallel as the cornerstone assets of a multi-asset, mid-tier gold producer.”

 

Email: info@red5limited.com

Web: www.red5limited.com