Red 5 (ASX:RED) is expecting to produce similar amounts of gold in May as it did in March and April at its King of the Hills Gold Mine in the Eastern Goldfields of Western Australia.
Speaking today (16 May 2023) at the Resource Rising Stars conference in the Gold Coast, Red 5 Chief Financial Officer, Patrick Duffy says: “Since February, we have hit the primary orebody, and we are now seeing much higher tonnes and grades coming from the open pit, and also the mill that was designed for the primary ore body is responding very well.”
According to the CFO, the company produced 41,000 ounces of gold over the March quarter. Yet in just the month of March, Red 5 produced 17,550 ounces, and in April it produced 18,550 ounces.
Duffy adds that the company is expecting similar results during May and June 2023, with somewhere between 50,000 to 55,000 ounces to be produced for the second quarter of the year.
Further, the company’s anticipated target for gold production at King of the Hills is expected to be about 95,000 ounces for the second half of 2023.
Duffy says: “Having declared commercial production in December, we have guidance for the half year. So for the second half, it was 90,000 to 105,000 ounces, and I think we’ll be somewhere near 95,000 ounces for that half of the year.
“We’re lucky we have a 15-year mine life for King of the Hills, so we’ll be producing 200,000 ounces per annum for a long time”
We’re lucky we have a 15-year mine life for King of the Hills, so we’ll be producing 200,000 ounces per annum for a long time.”
The King of the Hills Gold Mine consists of a 4.75 million ounce (Moz) mineral resource along with a 2.7Moz Ore Reserve, making it one of the top 10 largest mines in Australia by Ore Reserve.
According to the Red 5 CFO, the company is continuing to focus the next 12 months on generating good cash flow, reducing debt to a ‘comfortable’ level, and then starting to look at doing more drilling, both in the underground and to extend the depth of the southern pit.
Additionally, Red 5 is working towards becoming a multi-asset producer and says King of the Hills would fit well into a ‘high-quality’ portfolio of assets.
Red 5 is an ASX-listed gold producer based in Perth. The company is focused on operating its Darlot and King of the Hills gold mines, which are both located in the Eastern Goldfields of Western Australia.
Images: Red 5 Ltd
