Red 5 Ltd (ASX:RED) remains on track for first gold production this quarter at the 2.4-million-ounce King of the Hills (KOTH) Gold Project in Western Australia after scoring further key construction and operational readiness goals last month.
Major milestones at the 100%-owned, 16-year life-of-mine project have been the resumption of underground mining and commissioning of the crushing circuit at the process plant.
Construction progress
Other construction achievements during March:
- Commissioning of the gas pipeline has been completed;
- Commissioning of the power station has been completed to the stage where it is ready to power the process plant;
- Installation of the solar panels has been completed and wiring is being finalised; and
- Commissioning of the SAG mill has commenced, with the current critical path to first gold being the commissioning of the Variable Speed Drive.
Red 5 has released a construction flyover video from April 6, 2022.
Red 5 managing director Mark Williams said: “With first gold production expected in the current quarter at King of the Hills, our open pit mining teams are operating 24/7 and underground mining is now ramping up on schedule.
“Commissioning of the crushing circuit is complete, commissioning of the SAG mill is underway, and ore is being stockpiled for when processing begins.
“We’re also completing the site power supply, with the gas pipeline fully operational, the installation of the solar panels complete, and the power station now ready to power the process plant.”
Sheer scale “impressive”
“The sheer scale of the mine development is impressive, and I encourage shareholders to watch the latest flyover video to get a sense of the team’s achievement over the past 18 months," Williams added.
"It really has been an incredible effort, and I would again like to commend all members of the team for their outstanding work.”
Underground mining recommenced on March 31, 2022.
Red 5’s mining business partner, Macmahon Contractors, recommenced underground mining at King of the Hills on March 31, 2022, in line with the project execution schedule. Its start-up underground mine fleet comprises one jumbo, two boggers and a supporting fleet.
The initial focus is on mine development, with the first stopes planned to be fired later in the quarter.
In the open pit, two fleets are now operating on both day and night shifts as Macmahon ramps up its on-site teams, with a third and final fleet planned to be operational in May 2022.
Open Pit mining now consists of two fleets.