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Red 5 fielding interest

21st November 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner Red 5 on Monday told shareholders that the company had been approached by "interested parties" in relation to transactions, including consolidation, acquisition and mergers.

The company at the end of September said that it, from time to time, participated in strategic discussions, however, the latest spate of interest in the company was in addition to these discussions.

The Red 5 board will continue with these discussions and diligence investigations regarding potential transactions, but told shareholder that there was now guarantee that any agreement would be entered into.

In the meantime, the company is expected to reach commercial production at its King of the Hills (KOTH) gold mine, in Western Australia, in the December quarter.

The company reported that during November, the KOTH process plant had performed well, processing a consistently harder ore feed blend. Overall, the plant utilisation averaged above 95%, with average mill throughput at 14 100 t/d, equivalent to a rate above five-million tonnes a year.

The initial mine plan for KOTH estimated a mine life of 16 years, with gold production in years one to six expected to average 176 000 oz/y, while peak annual gold production of 203 000 oz/y will be achieved in 2024, benefitting from underground mining of one-million tonnes a year in years one to four.

Edited by Creamer Media Reporter

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