Both the Darlot mine and the company’s King of the Hills Gold Project (KOTH) are situated in the Eastern Goldfields region of Western Australia.
The establishment of a Maiden Resource at Darlot represents another milestone in the company’s Eastern Goldfields consolidation strategy.
This development has enabled management to provide its first production guidance outlook for its Australian operations for calendar year 2018.
The company is forecasting production in a range between 85,000 ounces and 95,000 ounces.
December quarter production to be at the upper end of guidance
Together with previously reported KOTH Mineral Resources, this increases the company’s Measured, Indicated and Inferred gold resource in the Eastern Goldfields to 1.3 million ounces.
Red 5 also confirmed that the company was on track to deliver December quarter production at the upper end of guidance which was in a range between 13,000 ounces and 16,000 ounces.
Increased resource partly attributed to inclusion of mineralisation from new zones
The increase in ounces compared with estimates determined by the previous owner, SAMREC, can be attributed to a variety of factors.
The company was also able to include extensions of existing mining areas that were previously deemed to have been uneconomical for large miners.
Mineralisation is open in various directions and at depth.
Exploration activity planned for 2018 could result in resource expansion at both projects, suggesting there is the prospect of further catalysts emerging over the next 12 months.