Red 5 Ltd (ASX:RED) remains on track for first gold production at its 100%-owned, 2.4 million ounces, 16-year life-of-mine King of the Hills (KOTH) Gold Project in Western Australia next quarter after achieving further key construction and operational readiness milestones during February 2022.
The project remains within budget and on schedule for first gold production in the June quarter, with the operation now entering the final stages of the construction and commissioning process.
Red 5’s mining business partner Macmahon has commenced open pit mining and is operating with two fleets and supporting equipment.
The company also now has its site leadership team in place, with overall Red 5 recruitment 93% complete.
Delivering against key milestones
Red 5 managing director Mark Williams said: “We’re continuing to deliver against our key milestones at King of the Hills as we approach first gold production next quarter.
“Our plant commissioning and mining programs are proceeding on schedule and within budget, with the operation now entering the final stages of the construction and commissioning process.
Key progress
Key construction progress during February 2022 included:
➢ Commissioning of the crushing circuit has commenced, with the initial no-load operation of the crusher and conveyor belts now complete;
➢ The gas pipeline has been installed, hydro-tested and is scheduled for commissioning by mid-March 2022;
➢ Commissioning of the power station and battery storage facility is ongoing and installation of the solar farm is underway; and
➢ Piping and electrical installation for the SAG mill and leach circuit is ongoing.
SAG mill commissioning is expected to begin later this month once electrical and piping installation for the mill has been completed.
Site leadership appointments
Red 5 and Macmahon have assembled a highly experienced management team for the KOTH operation, with key members of the site leadership team comprising:
➢ Neal Valk, general manager operations is an experienced industry general manager with a proven track record in commencing and successfully operating copper-gold and base metal mines. He has held numerous general manager roles, including at the Peak Gold Mine (Aurelia Metals), Osborne Mines (Ivanhoe Mines/Barrick), the Porgera Gold Mine in PNG (Barrick) and the Mt Lyell Copper Mine (CMT);
➢ Craig Hatch, operations manager is an experienced mining engineer whose previous roles have included mining manager for BHP Nickel West, technical services manager for Khoemacau Copper Mining’s Zone 5 Copper Mine in Botswana and underground mining manager at the St Ives Gold Mine in Western Australia (Goldfields). The operations manager will alternate with the general manager to oversee all operational activities centred around the KOTH Hub.
➢ Andrew McRae, mining manager (open pit) is a mining engineer, who has held several senior technical and management roles over the past 10 years, including at Evolution Mining’s Cowal Gold Mine in New South Wales and senior roles at iron ore operations at Koolan Island and Koolyanobbing in Western Australia.
➢ Oliver Keene, mining manager (underground) is a mining engineer, who has held several underground mine manager roles, including at the King of the Hills underground operation, the Andy Well Gold Mine (Doray Minerals) and the Cosmos Nickel Mine (Xstrata Nickel).
➢ Malcolm Cowcill, project manager (KOTH, Macmahon) is an experienced, having held several key roles for Macmahon, NRW and BGC Contracting for both surface and underground mining. He will oversee Macmahon’s open pit and underground mining activities at KOTH.
“Outstanding breadth of experience”
Williams added: “Given the current widespread labour shortages being experienced across Western Australia, I am particularly pleased that we have been able to assemble such an experienced and well-credentialled site management team, led by our general manager operations, Neal Valk.
“This team has an outstanding breadth of experience across all aspects of site operations, and are now on the ground to oversee the start of production from this major new gold operation.
Latest flyover video
Red 5 has released a construction flyover video from 8 March 2022. It can be viewed here.
Williams said: “With open pit mining now underway and the crusher circuit switched on, I encourage our shareholders to watch our latest flyover video to get a sense of the impressive scale of this world-class operation.”