Red 5 (ASX:RED) has increased the data density of near to medium-term production fronts and builds on exploration at the Sugar Zone Project in Northern Ontario, Canada, amid receiving drilling results from an exploration program.
The 2024 surface and underground exploration program comprised 93,000m of drilling, targeting infill areas of the Sugar Main and Middle Zone areas.
In conjunction, Red 5, which has a market capitalisation of $2.44 billion, has advanced internal studies, evaluating various scenarios for future production of between 800 to 1,000 tonnes per day.
At the Sugar South zone, surface drilling intersected shallow mineralisation and showed the exploration potential of the project. The company says the continued intersections of mineralisation in areas outside the ore reserves presents an opportunity for the area to have an impact on the mining options being considered for the restart of operations.
Some of the results include 2.41m @ 62.8 grams per tonne (g/t) gold; and 0.77m @ 214g/t gold.
At the Middle Zone, drilling results include 1.21m @ 36.1g/t gold; 2.78m @ 39.3g/t gold; and 0.38m @ 94.3g/t gold.
Meanwhile, at the Sugar Main zone, the results support historical drilling within the Sugar Main lodes. The company says the results increase the confidence in the continuity of grade and mineralisation.
Some of the results include 0.31m @ 161g/t gold; 1.35m @ 28.3g/t gold; and 0.9m @ 103g/t gold.
Red 5 says in conjunction with providing necessary drill coverage to support mine planning and scheduling, an updated resource estimate is expected to highlight priority areas for follow-up drilling through the first half of next year.
Follow-up drilling will assess the possible extent and tenor of mineralisation in areas upgraded by the 2024 drilling program.
Red 5 adds the completion of the 2024 drilling program is the latest investment to reset the foundations of Sugar Zone to deliver a more predictable and sustainable operation.
Red 5 is an Australian gold producer focused on becoming a multi-operational resource company through several prospective projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Red 5
