Red 5 (ASX:RED) has received new drill results that support the ‘long-term growth potential’ of the King of the Hills underground mine in Western Australia.
About 85% of the grade control drilling has been complete for the FY24 mine plan, delivering ‘high-grade’ assays including drillhole KHRD0768 with 2.4m @ 34.07g/t Au from 117.5m; drillhole KHRD0948 with 2.3m @ 29.93g/t Au from 106.7m; and drillhole KHRD1005 with 0.6m @ 214.90g/t Au from 99.62m.
Ahead of the $605.41 million market capitalisation company’s presentation tomorrow (9 August) at the Diggers and Dealers Mining Forum in Kalgoorlie, Red 5 says the ‘outstanding’ drill results suggest potential to deliver mine life extensions at King of the Hills, particularly within the Regal and Eastern Flank mining areas.
Commenting on the drill results, Red 5 Managing Director Mark Williams says: “Our underground drilling programs are continuing to confirm the robust nature of the King of the Hills resource and reserve models, with these latest results from grade control and resource extension drilling supporting our mine plan over the next 12 months and defining extensions to the key Regal, Eastern Flanks, and West Bulk mining areas.
“we see outstanding potential to continue expanding the existing resource and reserve inventory to further extend the current mine life”
Despite the enormous amount of drilling completed to date, large sections of the King of the Hills orebody remain relatively undrilled, and we see outstanding potential to continue expanding the existing resource and reserve inventory to further extend the current mine life.”
The company adds that further underground drilling is planned in FY24 to define extensions to current mining fronts.
Red 5 is an ASX-listed company focused on its King of the Hills and Darlot mine operations. As of 30 June 2023, the company had $45.9 million cash and bullion at hand, according to its latest quarterly report published on 26 July 2023.
Images: Red 5 Ltd