PERTH (miningweekly.com) – Gold miner Red 5 has adjusted its production expectations for the Darlot gold mine, in Western Australia.
The ASX-listed miner is now expecting gold production to reach between 74 000 oz and 78 000 oz in 2021, down from the previous estimate of between 80 000 oz and 85 000 oz.
Meanwhile, all-in sustaining cost forecasts at the project have increased to between A$2 240/oz and A$2 290/oz, up from the previous estimate of between A$2 150/oz and A$2 280/oz.
The miner told shareholders that labour availability at both the Darlot underground mine and the Great Western openpit mine had continued to impact production.
During the March quarter, the company started mining at the Great Western mine, however, owing to a shortage of machine operators and truck drivers, the contractor has been unable to ramp up mining activities at the planned rate, meaning the delivery of higher-grade ore to the Darlot mill has been delayed into 2022.
“Red 5 continues to make excellent progress on the King of the Hills gold project, however, we continue to face challenges at our Darlot gold mine. The difficulty sourcing skilled labour for both Darlot and our new Great Western mine has impacted our ability to achieve our 2021 production guidance,” said MD Mark Williams.
He noted that the King of the Hills project remained on schedule and on budget, with gold production expected in the June quarter of 2022.