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

Location
In the Eastern Goldfields region of Western Australia.

Project Owner/s
Gold producer 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
Red 5 has awarded a five-year mining services contract at its KOTH mine to a subsidiary of civil and mining contractor Macmahon.

Red 5 signed a letter of intent with Macmahon in March 2021 for the mining contract, and has now formally awarded the contract following the finalisation of terms.

The miner says the mining costs for the operation are in line with those outlined in the final feasibility study for the operation.

Key Contracts, Suppliers and Consultants
None stated.

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