2022 ANNUAL REPORT 3 MANAGING DIRECTOR’S Report The 2022 financial year has been a busy and successful period for Red 5, with the Company successfully constructing and commissioning Australia’s newest major gold mine, the King of the Hills (KOTH) gold mine in the Eastern Goldfields region of Western Australia. The efficient and highly professional execution of this $226 million project during the year is a significant achievement, with the first gold pour on 5 June 2022 marking a major milestone for our entire team. Considering the challenging conditions being experienced in the Western Australian resource sector with widespread labour and skills shortages, cost inflation, border closures and the onset of the COVID-19 pandemic, the delivery of KOTH on time and within budget is testament to the dedication and commitment of the entire Red 5 team supported by contracting partners MACA-Interquip and Macmahon Contractors. On the mining front, Red 5’s Eastern Goldfields operations delivered total gold production over the past year from Darlot and the Great Western open pit of 64,667 ounces. This was a commendable achievement, particularly given the operator and skills shortages experienced during the year and high turnover of operators and staff – an industry-wide issue which has impacted many mining operations around Western Australia. Following the comprehensive review of our operations completed last year, Red 5 implemented a revised mine plan for Darlot which saw Redpath Mining Contractors engaged to commence underground mine development as part of a strategy to unlock the project’s resource base and reduce reliance on mining remnant areas. Our new mine plan and future processing strategy will see the Darlot underground mine transition into a high-grade feed source for the new KOTH processing plant, with trucking of ore from Darlot to KOTH having commenced in the September 2022 quarter. Processing Darlot’s ore through KOTH’s new processing plant will enable us to deliver a step-change in production costs, with the Darlot mill suspended in July 2022 and the bulk of the surface operations personnel transitioned across to KOTH. KOTH, Darlot and Great Western locations, showing annual mill throughput from key gold deposits in the region. Goldfields Highway Eastern Goldfields Gas Pipeline 150km 100km 50km Leinster Leonora Laverton Sunrise Dam Sunrise Dam 4.1 Mtpa NLGP Bellevue Darlot Darlot 1.0 Mtpa Thunderbox Great Western Thunderbox 3.0 Mtpa Bannockburn Agnew Vivien Agnew 1.3 Mtpa King of the Hills 4.7 Mtpa King of the Hills Mt Ida Apollo Hill Ulysses Gwalia Gwalia 1.5 Mtpa Mt Morgans Cardinia Mt Morgans 2.8 Mtpa Granny Smith Granny Smith 3.5 Mtpa Duketon Duketon 2.5, 2.5 & 5 Mtpa 6,950,000mN 6,900,000mN 6,850,000mN 350,000mE 400,000mE 300,000mE 250,000mE RED 5 LIMITED Tenements ARDEA JV Tenements Gold Mine (operating, closed) Gold Project (developing) Gold Prospects Greenstones Granites Western Australia Darlot Project King of the Hills Project 25 Kilometers Mill throughput (million tonnes/annum) Mtpa 6,800,000mN NORTH
RkJQdWJsaXNoZXIy MjE2NDg3