Name of the Project
King of the Hills (KOTH) gold project.

Location
In the Eastern Goldfields region of Western Australia.

Project Owner/s
Red 5.

Project Description
Red 5 has approved the final feasibility study for a proposed standalone four-million-tonne-a-year bulk mining and processing operation at the KOTH, with an initial mine life of 16 years and the potential to expand this to six-million tonnes a year.

Life-of-mine production is estimated at 2.5-million ounces of contained gold.

Gold production in years 1 to 6 is expected to average 176 000 oz/y, while peak gold production of 203 000 oz/y will be achieved in 2024, benefiting from underground mining of one-million tonnes a year in years 1 to 4.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$1.1-billion and an internal rate of return of 64.3%, with a payback of 25 months and a gold price of A$2500/oz.

Capital Expenditure
The feasibility study has delivered a capital cost for the project of about A$226-million.

Planned Start/End Date
First production is scheduled for the June quarter of 2022, with three months of mine prestrip.

Latest Developments
The Western Australian Department of Mines, Industry Regulation and Safety has approved the mining proposal for Red 5’s KOTH gold project – the final significant permit required for the restart of mining activities at the project in 2022.

“With all major mining approvals now in place and the debt funding process on track for completion this quarter, Red 5 has approved Phase 2 of the engineering, procurement and construction contract,” MD Mark Williams has said.

This will enable MACA Interquip to ramp up the mobilisation of its construction teams over the coming months. The manufacture and delivery 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 progresses in the second half of this year.

To date, the project is about A$10-million under budget and on track to deliver its first gold production from the processing plant in the June quarter of next year.

Red 5 is finalising the debt financing for the KOTH project with a tier-1 banking syndicate; completion is expected in the March quarter of this year.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Red 5, tel +61 8 9322 4455 or email info@red5limited.com.