PERTH (miningweekly.com) – Gold miner Red 5 has awarded a five-year mining services contract at its King of the Hills mine, in Western Australia, to a subsidiary of civil and mining contractor Macmahon.
Red 5 in March inked a letter of intent with Macmahon for the mining contract, and has now formally awarded the contract following the finalization of terms.
The miner told shareholders that the mining costs for the operation were in line with those outlined in the final feasibility study for the King of the Hills operation.
“We are pleased to have finalised agreed contract terms with Macmahon and formally appointed them as our openpit and underground mining contractor. Macmahon is one of the strongest mining contractors in the market, and we are looking forward to partnering with them to deliver Australia’s next significant new gold mine,” said Red 5 MD Mark Williams.
First gold from the King of the Hills mine is scheduled for the June quarter of next year, and the project would have a 16-year openpit mine life and a 5-year underground mine life.