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Red 5 Moves KOTH Feasibility Closer to Completion

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) reported its 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 is on schedule for completion in the September 2020 Quarter.

Red 5 is currently reviewing the design and costings for the Process Plant and other on-site infrastructure.

Mine planning studies are continuing with the final KOTH open pit, satellite deposits, underground mine designs and mine schedules expected to be finalised early in the September 2020 Quarter.

An updated KOTH Ore Reserve to follow is anticipated to form part of the Final Feasibility Study.

“We continue to systematically progress towards completion of the FFS, with mining and engineering studies well advanced and project approvals on schedule,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“Strong progress is being made with planning for site early works and ordering of long-lead items, with the delivery of a recently-purchased accommodation village and offices expected to coincide with the planned commencement of site early works in the second half of CY2020.

“Over the coming weeks we expect to complete our review of the designs and costings for the Process Plant and other on-site infrastructure, and finalise the tailings storage management report, while also progressing heritage surveys over key infrastructure corridors.

“The successful completion of these workstreams will put us on track to deliver the FFS on schedule in the September 2020 Quarter, marking a major milestone towards the development of one of Australia’s most exciting new gold development projects.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

Red 5 Exercises Acquisition Option Over Cables and Mission Deposits

THE BOURSE WHISPERER: Red 5 Limited (ASX: RED) has exercised an option to complete the acquisition of the Cables and Mission gold deposits in Western Australia.

Red 5 described the acquisition as strategic, given that the “bolt-on” deposits are located around ten kilometres north of the company’s Darlot gold mine.

Red 5 explained the acquisition forms part of a multi-strand strategy to expand the Darlot Mineral Resource base, which includes ongoing near-mine and regional exploration as well as consolidation of strategic opportunities.

Before completing the acquisition of the Cables and Mission deposits, Red 5 carried out due diligence and confirmatory Reverse Circulation (RC) drilling to validate historical drilling and determine the potential of the Cables and Mission deposits.

Confirmatory Reverse Circulation drilling by Red 5 confirmed the mineralisation with best intercepts of:

20MIRC0001
7 metres at 5.7 grams per tonne gold;

20MIRC0002
4m at 14.7g/t gold; and

20CBRC0003
5m at 3.7g/t gold.

The Cables and Mission transaction follows Red 5’s recently announced acquisition of the Great Western gold deposit.

“The acquisition of the Cables and Mission deposits represents another strategic low-risk opportunity to continue growing the company’s Resource base in the area surrounding the Darlot gold processing plant,” Red 5 managing director Mark Williams said in the company’s annooucnement to the Australian Securities Exchange.

“The acquisition includes a JORC 2004 Inferred Resource which we plan to upgrade to JORC 2012 compliance, while at the same time commencing exploration activities aimed at testing the broader potential of the tenements, which are located in close proximity to our existing Darlot operations.

“Significantly, the rock units hosting the Cables and Mission deposits are similar to those that host the Centenary orebody, which has been mined for many years from underground at Darlot.

“The Cables and Missions transaction follows the recent acquisition of the Great Western gold deposit, both of which are planned to provide additional sources of ore feed for the Darlot processing plant in the coming years.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

Red 5 Defines Satellite Resources at KOTH

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.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

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

 

THE DAILY ROADHOUSE

 

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