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

Location
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 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 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
Commissioning of the crushing circuit has started, bringing developer Red 5 one step closer to production.

Mining activities at the project started earlier this month, with first gold pour slated for the June quarter.

“. . . we are now getting to the pointy end of completion activities. Recent key milestones have included the commencement of openpit mining and the start of commissioning . . . the crushing circuit, ” MD Mark Williams has said.

Semiautogenous grinding mill commissioning is expected to begin later in the March quarter once gas power is available, and once electrical and piping installation for the mill have been completed, Red 5 will build ore stockpiles in advance of sending first ore to the mill.

Red 5 has awarded ASX-listed MLG Oz a new contract for integrated haulage and road maintenance services to service the KOTH processing facility. The contract will run for an initial two years, with a one-year extension option.

Key Contracts, Suppliers and Consultants
None stated.

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