Red 5 Ltd (ASX:RED) has begun processing the first ore through the 4.7 million tonnes per annum processing plant at its King of the Hills (KOTH) Gold Project in Western Australia.
Processing will initially focus on low-grade development ore, sourced primarily from stage one of the KOTH open pit and existing stockpiles, while the final commissioning of the processing circuit is completed.
Looking ahead, the first gold from the processing plant is expected to be poured in the near future.
“Key milestone”
Red 5 managing director Mark Williams said: “This is a key milestone for King of the Hills, delivered on time and on budget, and puts us on track for first gold production in the near future.
“I am very proud of the achievements to date of our construction and operations teams during these unprecedented market conditions.
“I would also like to acknowledge our major business partners, MACA Interquip and Macmahon, for their contributions and commitment to the success of the KOTH project.
KOTH flyover and ore processing.
Forward plan
Mining is ongoing at both the KOTH open pit and underground mines, with the third open-pit fleet now ramping up.
Open-pit grade control drilling has confirmed the grade and tonnes of ore expected within the initial mining area.
Williams adds: “The King of the Hills processing plant will become a highly efficient processing hub for our operations in the Leonora district, enabling Red 5 to deliver a significant step-change in our business.
“We are delighted to have commenced processing operations, and we look forward to delivering our next key milestone of first gold.”
Shares were as much as 5.8% higher to A$0.365 while the company's market cap is approximately A$828.85 million.
