Developing a major new standalone bulk mining and processing operation at King of the Hills
The estimated $226 million mine development is underpinned by the construction of a +4Mtpa processing plant, fed by the large open pit and underground mine at KOTH and complemented by a series of smaller satellite pits.
The King of the Hills workforce will total approximately 450 people during construction and 300 during operations, and will deliver strong benefits to the Western Australian economy with estimated taxes of $375 million and royalties of $235 million over the initial 16 year mine life.
With gold production at KOTH due to commence in the June Quarter 2022, Red 5's dual production hubs have a targetted global production profile in excess of 250,000 ounces of gold a year.
Key Project Features
Two distinct mine production phases over the 16-year mine life:
Mining of the south and north pits. including underground mining in Years 1-4
First six years
Cut-back and mining of the north pit
Years 7 - 16
First Six Years - Mine Profile
FY2023 – FY2028
FY2023 – FY2038
Average production grade
- The Underground ore mined includes 2.4Mt of Inferred Resources (191koz) from the KOTH Underground.
- For calculating the Year 1-6 average, Year 1 assumed to commence from FY23 (excludes commissioning and the first 3 months of production ramp-up).
Contained/Payable (oz) & grade (f/t)
Annual & Accum. Free Cashflow (Post-tax)
JORC 2012 Mineral Resource and Ore Reserves
Red 5 confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcements.
Red 5 confirms that all the material assumptions underpinning the Final Feasibility Study production targets on the King of the Hills project (see ASX release dated 15 September 2020), or the forecast financial information derived from a production target, in the initial public reports continue to apply and have not materially changed.