Red 5 Ltd (ASX:RED) has made further headway at its cornerstone King of the Hills (KOTH) project, where construction is underway on one of Australia’s most well-endowed gold assets.
Over September, the gold stock kicked off installation works on its semi-autogenous grinding (SAG) mill — a crucial piece of equipment that will transform KOTH ore into finer particles for further processing.
Aside from the mill progress, RED also advanced work on its crusher equipment, the carbon-in-leach tanks and power station foundations.
The KOTH project —with 2.4 million ounces in reserve and a 16-year mine life — remains within budget and on schedule, meaning it’s set to come online in the June quarter of 2022.
Passing milestones each month
Red 5 managing director Mark Williams said: “September was another solid month of progress for our construction and development teams, and King of the Hills is now rapidly taking shape as Australia’s newest mid-tier gold mine.
“Thanks to the diligence and hard work of our in-house team, led by project manager Warren King and our EPC contracting partner MACA Interquip, development is powering ahead, and we continue to pass important milestones each month.
“As shown in the pictures, some of the key highlights for September have included the start of installation of the large mill shell and the crusher building steelwork.
“With the painting of the CIL tanks and construction of the ROM wall in progress, the site overall is rapidly beginning to resemble the state-of-the-art gold mining and processing centre that it will soon become!
“We continue to benefit from having locked in the key long-lead items and contracts last year as we remain on schedule and on budget for first gold by the June quarter 2022.”
Securities today are 17.78% higher to 26.5 cents and the company started the day with a market cap of approximately $530.2 million.
Construction continues
One of the key construction milestones for September involved the start of installation work on the all-important SAG mill.
The 36-foot mill shell is currently being placed, while the motors — which each weigh 62 tonnes — have been lifted into position.
Work on the crusher facilities is also advancing, with steelwork for the building underway.
The structure’s concrete base and chutes have been installed, while the gyratory crusher is being assembled before it’s lifted into place.
Work on a key retaining wall at the KOTH site continues, where nearly three-quarters of the 40 lifts are now complete.
Meanwhile, the four gigantic carbon-in-leach tanks, seen in the foreground of the picture below, are undergoing a paint job.
Work on the project’s gold room is also progressing, with steelwork on the important structure now underway.
RED is also working to electrify the KOTH site - the foundations of the power station are now complete, meaning electrical cables can be installed.
The maiden gas engine is now in place and will soon help bring the gold project online.
Finally, KOTH’s mine services building has been erected, while the fit-out continues.
Just beyond the processing hub, earthworks on the fourth tailings storage facility is underway, paving the way for a wall lift at the hub.
Proactive Gold Webinar
Red 5's chief corporate development officer Patrick Duffy will present the company's investor case during next Tuesday's Proactive Gold Webinar.
The webinar will be held from 12 noon Sydney time (9am WA time) on Tuesday, October 12, and registrations can be made here.