Darlot Gold Mine
Darlot is an established, operating gold mine located ~900km north-east of Perth, which is located in a rich historical gold field which has produced ~2.7Moz of gold over a 28-year operating history. Historical production has averaged ~94koz per annum since 1989, with production of 66,000oz in 2016*.
The Darlot mining operation was acquired by Red 5 as a going concern from a wholly-owned subsidiary of Gold Fields Limited (JSE, NYSE: GFI) , with the acquisition including:
- A fully operational 0.83Mtpa Carbon-in-Pulp (CIP) and Carbon-in-Leach (CIL) gold processing plant, which was refurbished by Barrick Gold in 2010-2013 at a cost of $17 million and has been well maintained since;
- A SAMREC 2016 Mineral Resource of 1.2Mt @ 6.0g/t Au for 224,000oz as at 31 December 2016;
- A mining camp, including 402 rooms, mess facilities and other camp associated facilities;
- A total land-holding of approximately 13,900ha;
- Extensive on-site infrastructure, including ROM pad, paste plants, tailings dams, maintenance workshops, exploration/core logging and storage facilities, and a CASA-certified airstrip; and
- All required utilities including power and water.
The acquisition was completed in early October 2017. Prior to Gold Fields’ ownership, the Darlot Gold Mine was previously held by Barrick Gold and Homestake Mining.
Red 5 considers that the Darlot processing plant is the key to unlocking numerous isolated gold deposits that lie within a 100km radius. The first additional deposit to be pursued under this strategy is the King of the Hills Gold Project, located 80km south of Darlot.
Immediate Operational Strategy
The Darlot Gold Mine has been acquired by Red 5 as a going concern, with mining and processing operations continuing throughout the ownership transition, and all existing staff and contractors retained.
Red 5’s immediate operating strategies for the current Darlot mining operation include:
- Targeting opportunities to increase the recovery of existing resources to extend the mine life;
- To combine an extended Darlot operation with ore from King of the Hills to return the processing plant to full capacity (currently 0.83Mtpa) and spread fixed overhead costs over an increased production profile; and
- To target other growth and consolidation opportunities in the region for existing undeveloped resources within economic trucking distance of Darlot.
Some of the other near-term growth opportunities being pursued at Darlot include
- An evaluation of potential shallow oxide targets which have been identified from the historical pre-JORC 2012 resource models acquired as part of the Darlot acquisition;
- A comprehensive exploration review including interpretation of the high-resolution 3D seismic survey carried out over the Darlot mining facilities in November 2016 to define key drilling targets.
* Gold Fields Resource and Reserve Supplement 2016 p.69 dated 28 March 2017