PERTH (miningweekly.com) – Junior gold miner Red 5 has reported a steady production quarter in the three months to March, with gold production reaching 24 187 oz, compared with the 26 118 oz produced in the previous quarter.
Gold sales for the March quarter declined slightly from 27 149 oz in the previous quarter, to 23 444 oz, while all-in sustaining costs over the same period increased from A$1 547/oz to A$1 637/oz.
“The March quarter has been another active and positive period for Red 5, with gold production and operating costs in line with guidance and further excellent exploration results supporting the emerging bulk mining opportunity at King of the Hills,” Red 5 MD Mark Williams said on Tuesday.
“Darlot continues to deliver the baseload of ounces through consistent production from the high-grade Oval orebody. This quarter also saw the successful start of narrow vein airleg mining in remnant areas of the original Darlot Underground. This promising start to airleg operations indicate we can deliver consistent high-grade ore, adding incremental value to the operation in addition to the current mine plan.”
At the King of the Hills operation, bulk underground mining started during the quarter under review, with the bulk stopes expected to form part of the mine plan for the next 12 to 15 months, resulting in increased ore production rates and reduced costs.
For the June quarter, Red 5 is projecting gold production to reach between 27 000 oz and 31 000 oz, with all-in sustaining costs projected at between A$1 300/oz and A$1 450/oz.