King of the Hills Development Project
Red 5’s 100%-owned King of the Hills Gold Mine is located 80km south of the Company’s Darlot Gold Mine and 28km north of the town of Leonora in the Eastern Goldfields region of Western Australia.
The planned King of the Hills Project will be Australia's next major gold mine.
Since Red 5 commenced mining at King of the Hills in January 2018, the Company has identified the potential to pursue a stand-alone bulk mining operation. This opportunity is based on the potential to economically extract significant quantities of lower-grade gold mineralisation located between the high-grade veins.
Red 5 has since made rapid progress in defining this opportunity, with ongoing work programs culminating in the delivery of an updated open pit and underground Mineral Resource estimate totalling 90.7Mt at 1.4g/t Au for 4.07Moz of contained gold.
The upgraded Mineral Resource demonstrates the scale and potential of King of the Hills.
Red 5 is now working on completing the final components of a bulk mining Final Feasibility Study for King of the Hills, including mining and engineering studies and an updated Ore Reserve. These work programs are on track to deliver the Final Feasibility Study on schedule in the September 2020 Quarter.
King of the Hills Project opportunity
- One of Australia's premier emerging gold projects
- Resource increase by 31% to 4.1Moz (March 2020)
- 83% of 4.1Moz Resource within the planned large open pit mine
- Deposit open in all directions
- Final Feasibility Study on track for September 2020 Quarter
- 4Mtpa stand-alone mill, with flexibility for post-construction expansion to 6Mtpa
- Targeting 2022 King of the Hills stand-alone production
- Planned bulk open pit and underground mine
- August 2019 PFS estimated production of 140kozpa (open pit only) with a 10-year mine life, with upside potential identified following 31% Resource upgrade delivered in March 2020
King of the Hills August 2019 Pre-Feasibility Study – Key Outcomes
- Ore Reserve - 1.5Moz (open pit only)
- Ore Milled - 4Mtpa
- Grade - 1.24g/t Au
- Recovery - 92.8%
- Average Annual Production - 140,000koz
- Waste-to-Ore Strip Ratio - 6.1
- Life of Mine - 10 years
- Estimated Capital Cost ~$218m
- Estimated All-In-Sustaining Cost - $1,167/oz
View Status of King of the Hills Final Feasibility Study
In addition, Red 5 is undertaking a significant drilling program at King of the Hills, with 110,000m of drilling scheduled for FY2020. This program will include Resource infill and extension drilling, as well as regional exploration programs.
For further details on Red 5’s development strategy for the King of the Hills Gold Project, refer to the Company’s recent ASX announcements and investor presentations.