5 2022 ANNUAL REPORT KING OF THE HILLS OPERATIONAL RAMP-UP Open pit grade control drilling Red 5 completed an initial 70,000 metres of grade control drilling in the KOTH southern pit during FY-22 to cover the first 30 to 45 metres vertically of the current Stage 1 design. Open pit grade control will be conducted in phases, with the initial phase of drilling designed to cover the first six months of open pit mining with the objective of de-risking and setting up the initial ore blocks for mining. Underground drilling In preparation for mining at KOTH, approximately 40,100 metres of underground drilling was undertaken in FY-22, with an additional 86,000 metres planned for FY-23 for an estimated total of 140,000 metres. Drilling is focused on a mixture of grade control, resource definition and exploration programs. KOTH processing The KOTH processing facility was commissioned in May 2022 and has been progressively ramping up, with both throughput rates and gold recoveries in-line with expectations. The gas power station has been operating to plan, and the water balance has now reached steady state, with all water bores and Tailings Storage Facility (TSF) return water infrastructure operational. The first gold pour from the process plant was achieved on 5 June 2022. During June 2022, the total mill operating time was 84%. The SAG mill continues to deliver throughput rates in excess of 600 tonnes per hour for significant periods at moderate mill loads and power draw. A total of 385,704 dry tonnes was milled up to 30 June 2022, producing a total of 9,545 ounces at an average recovery of 90.9% and grade of 0.85g/t. The reconciled grade of near surface KOTH ore was 0.55g/t, with over 60% of the processing feed stock sourced from historical stockpiles. The reconciled grade of KOTH ore was within 1% of the expected grade of ore mined at this stage of the open pit cut-back. The processing plant feed was supplemented by higher-grade ore trucked from the Great Western satellite open pit during May and June 2022. KOTH mining activities During the June Quarter, Macmahon Contractors progressively ramped up total material movement as two open pit fleets and supporting ancillary equipment began operating on a double shift basis. Macmahon mined 2.9 million bank cubic metres (Mbcms) in the June Quarter from the Stage 1 pit, including 365,675 tonnes of ore at an average grade of 0.52g/t (consistent with the expected grade of ore mined at this stage of the open pit cut-back). Land clearing for the waste storage facility is progressing to plan, drill and blast activities are on plan. Construction of the Run of Mine (ROM) pad was completed early in the quarter. The ROM pad is now established and has been designed to allow highly efficient “super-quad” road trains to deliver ore from off-site sources such as Great Western and Darlot as part of a strategic haulage agreement in place with key business partner MLG. The construction of Tailings Storage Facility 5 (TSF5) is progressing to plan. Following the TSF5 construction tender award in May 2022, the successful contractor, Iron Mining, has mobilised to site and begun site establishment and construction. All construction materials for TSF5 have been sourced from Stage 1 open pit mining activities. Underground mine development activities continued during the quarter, with over 800 metres of development completed. The first stope was fired in June 2022, signalling the commencement of underground production activities. Underground infrastructure is still under development, with connection to the site high voltage system to occur early in the September Quarter. Mining infrastructure establishment continues, with the completion of the heavy vehicle workshop, offices, change rooms, ablutions and training facilities expected in the September 2022 Quarter. MANAGING DIRECTOR’S Report (cont.)
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