PERTH (miningweekly.com) – Gold miner Red 5 has confirmed its production guidance for the first half of 2023 at between 90 000 oz and 105 000 oz at its King of the Hill (KOTH) mine, in Western Australia, and has put an estimate on its all-in sustaining costs for the period of between A$1 750/oz and A$1 950/oz.
Red 5 declared commercial production at KOTH in December last year and produced 36 260 oz of gold during the three months to December.
The miner on Wednesday told shareholders that it was expecting a stronger March quarter, with a record 13 534 oz produced in January on the back of a progressive increase in average head grade and average recovery.
Following minor issues in the processing circuit and crusher which constrained production early in January, the process plant finished the month strongly, with mill throughput averaging at the equivalent of 4.8-million tonnes a year for the final two weeks of the month. The company is now focused on progressively increasing mill throughput and consistency.
Meanwhile, the construction of tailings storage facility 5 (TSF5) at KOTH is proceeding on schedule, with planned commissioning in early April 2023, providing an initial 7.9-million tonnes of new tailings capacity. TSF5 has been a significant capital activity for the project and will be finished on time and within budget, Red 5 told shareholders.
The bulk of the earthworks for TSF5 is now complete and the contractor is progressively demobilising from site.