Red 5 has reported that its King of the Hills (KOTH) gold mine in Western Australia is well on track for commercial production next month.
During November, the KOTH process plant has performed well, processing a consistently harder ore feed blend. Overall plant utilisation up to November 19 has averaged above 95 per cent, with average mill throughput equivalent to annualised rates of above 5 million tonnes per annum.
The company said its three mines, the KOTH open pit and underground mines and the Darlot underground mine, are well-resourced and performing in line with expectations.
In the KOTH open pit, the majority of the waste cut-back of Stage 1 is complete and the primary ore body, located at and around the ultramafic/granodiorite intrusion contact, is now exposed on the pit floor.
Grade control drilling of these initial primary ore body levels is confirming the expected tonnes and grades.
Additional crews have been in place since August to enable the mining schedule to catch up for lost material movements due to COVID absenteeism experienced from May to July 2022, with the catch-up activities to be completed by December.
Red 5 also said it had been approached by other interested parties in relation to transactions, including consolidation, acquisition and merger.
The board has determined to continue discussions and diligence investigations with relevant interested parties regarding a potential transaction. Whilst these discussions and investigations are ongoing, Red 5 said at this time no agreement has been entered into in relation to any transaction and there can be no guarantee that any agreement will be entered into.