King of the Hills Gold Project
Red 5’s 100%-owned King of the Hills (KOTH) 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.
Mining at KOTH has traditionally been focused on extracting high-grade gold veins, with the ore currently trucked to Red 5’s nearby Darlot Processing Plant for processing.
However, since Red 5 commenced mining at KOTH in January 2018, the Company has identified the potential to pursue a 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.
In December 2018, Red 5 announced an initial ‘proof-of-concept’ bulk mining Mineral Resource estimate for KOTH comprising 28.7Mt at 2.0g/t Au for 1.88Moz of contained gold. This initial Resource was based on a portion of the prospective granodiorite contact zone, with drilling indicating the mineralisation is not closed off and continues down-dip and along strike.
A major 30,000m underground diamond drilling program is now underway to expand and upgrade the bulk mining Mineral Resource estimate.
Based on the strength of the initial Resource, Red 5 has commenced a strategic review to evaluate the economics of a bulk underground and/or open pit mining operation at KOTH, together with a standalone processing facility on-site. This review is scheduled for completion by mid-2019.
In addition, Red 5 is also undertaking a regional drilling program to test a number of regional targets at KOTH that could also contribute to a future bulk mining operation.