PERTH (miningweekly.com) – Gold miner Red 5 has reported a record quarter from its Western Australian operations during the three months to June, producing 30 098 oz of gold, compared with the 24 187 oz delivered in the March quarter.
Gold sales for the June quarter reached 27 406 oz, compared with the 23 444 oz sold in the March quarter, while all-in sustaining costs decreased from A$1 637/oz to A$1 331/oz in the same period.
“Every department kicked goals during the quarter, with excellent gold production of over 30 000 oz from our Darlot and King of the Hills gold mines representing our best operational performance since we completed the project acquisitions in October 2017,” said Red 5 MD Mark Williams.
“This strong production, combined with continued strength in the Australian dollar gold price, saw Red 5 end the June quarter with a cash and bullion balance of A$24.9-million.”
Williams said that the June quarter also saw positive development towards the assessment of long-term, standalone bulk mining and processing operations at King of the Hills, with the delivery of an updated 3.11-million-ounce Joint Ore Reserves Committee- (Jorc-) compliant resource for the Eastern Margin Contact, as well as shallow openpit oxide resources for two key satellite deposits.
Red 5 is working towards the completion of a Jorc-compliant openpit ore reserve, supported by a prefeasibility study for the potential development of a standalone bulk openpit mining operation at King of the Hills, which is on track for delivery in August this year.
Meanwhile, Red 5 has estimated that gold production for the September quarter would range between 27 000 oz and 31 000 oz, with production in the 2020 financial year expected to reach between 110 000 oz and 120 000 oz.