Proactiveinvestors Australia Red 5 Ltd Proactiveinvestors Australia Red 5 Ltd RSS feed en Tue, 18 Dec 2018 02:08:19 +1100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Red 5 delivers maiden gold production ahead of consolidation strategy ]]> Red 5 Limited (ASX:RED) has transitioned from gold explorer to producer as evidenced in its result for the six months to 31 December 2017.

During this period the company achieved a strong maiden production performance from the Darlot operations in the Eastern Goldfields of Western Australia.

Gold sales were 16,150 ounces at an all in sustaining cost of A$1,291 per ounce.

Cash and bullion of $21.8 million

Red 5 had cash and gold bullion of $21.8 million at the end of the half year.

The robust cash position at the end of December 2017 was driven by a strong quarterly performance from the newly acquired Darlot mining operations.

READ: Red 5 provides maiden gold production guidance for 2018

While plant issues will stifle March quarter production, management is expecting that it will be in a range between 12,000 ounces and 15,000 ounces.

Underground development began at the King of the Hills project in January 2018 using experienced underground mining contractors, Pit N Portal Mining Services.

Resource definition work starts

Resource definition work has also started this quarter at Darlot and King of the Hills.

This work will potentially increase costs for the next two quarters.

Mark Williams, managing director, said: “We are encouraged by the performance of the Darlot operation and confident in our Eastern Goldfields consolidation strategy.”

“This should maximise throughput at the Darlot mill by processing ore from both the Darlot and King of the Hills underground mining operations.

“Stage II of the strategy will centre on increasing the reserve and resource base in the Eastern Goldfields through regional exploration within the 25,700-hectare tenement footprint acquired under the Darlot and King of the Hills transactions.

“Assessing additional opportunities”

"It will also see the company assessing additional business development opportunities which we are executing.

“This was recently demonstrated from our announcement of the intention to make a conditional off-market takeover bid for all fully paid ordinary shares in Bullseye Mining Limited.”

Red 5 continues to pursue other acquisition opportunities in areas surrounding its core assets.

It is also advancing permitting approvals for the Siana Gold Project in the Philippines.

Tue, 13 Mar 2018 09:07:00 +1100
<![CDATA[News - Red 5 provides maiden gold production guidance for 2018 ]]> Red 5 Limited (ASX:RED) has established a Maiden JORC 2012 Mineral Resource of 895,000 ounces and a Maiden Ore Reserve of 131,000 ounces at its Darlot Gold Mine.

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.

Fri, 22 Dec 2017 13:47:00 +1100
<![CDATA[News - Red 5 closes two landmark gold acquisitions in the Eastern Goldfields ]]> Red 5 Limited (ASX:RED) has completed the acquisitions of the operating Darlot Gold Mine and the advanced King of the Hills Gold Project in the Eastern Goldfields of Western Australia.

Darlot was acquired from a subsidiary of South Africa-based gold producer Gold Fields (JSE:GFI) after paying $6.5 million in cash and 130 million Red 5 shares.

The Darlot Gold Mine has been acquired by Red 5 as a going concern and mining and processing operations will continue through the ownership transition.

The King of the Hills project was acquired from gold producer Saracen Mineral Holdings (ASX:SAR) by paying $6.5 million in cash and 90 million Red 5 shares.

A further deferred consideration (in cash or shares) of $5 million is payable to Gold Fields within the next 24 months and $4.5 million to Saracen within the next 12 months.

The acquisition makes Gold Fields and Saracen two substantial shareholders in Red 5 with each party holding a relevant interest of 19.92% and 10.54% respectively.

Red 5 now has a production and cash-flow base at Darlot and a significant opportunity at the King of the Hills, where underground mining is targeted to commence next month.

The acquisition was completed after Red 5 raised circa $12.7 million via a rights issue.

Importantly, this opens a significant new chapter for the company as an Australian gold producer listed on the ASX.

The company’s shares closed circa 11% higher on Monday, at $0.049.

Tue, 03 Oct 2017 08:43:00 +1100
<![CDATA[News - Red 5 hits high-grade gold, sees copper potential ]]>
Red 5 (ASX:RED) has enhanced the profile of its Siana gold project in the Philippines with new geotechnical drilling results delivering high-grade intersections in support of a planned transition to underground mining.

The assays are also interpreted as indicating potential for a copper porphyry system at depth.

Highlights included 10 metres at 5.4 g/t gold from 461 metres downhole, or 230 metres below surface.

This intersection contained 1 metre at 27.9g/t gold, 1 metre at 8.4g/t gold and 1 metre at 11.7g/t gold.

Another intersection marked 5 metres at 35.9g/t gold from 478 metres downhole (or 240 metres below surface) including 1 metre at 11.7g/t gold.

The results reinforce the potential of the existing underground resource and will contribute to a revised resource estimate and mine plan being completed as part of the updated underground Feasibility Study.

Interestingly, the exploration also demonstrated potential copper mineralised margins at what appears to be an intrusive porphyry at depth.

This system may represent the source of the Siana gold deposit as well as additional undiscovered epithermal shoots in the near-mine environment.

The potential for a significant gold-copper porphyry system at depth provides an important new exploration target for Siana.

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Fri, 15 Jan 2016 17:00:00 +1100
<![CDATA[News - Red 5 Limited to update on Siana gold project ]]> Red 5 Limited (ASX:RED) has been granted a trading halt by the ASX pending an update from the company regarding a pit wall movement at the Siana gold project.

The project is situated on the island of Mindanao in the Philippines.

The company recently said that total gold recovered for the June 2015 financial year is expected to exceed 21,000 ounces.

Red 5 had a healthy A$13.3 Million cash balance at end of May 2015.

The halt will remain in place until the opening of trade on Friday 10th July 2015, or earlier if an announcement is made to the market.


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Wed, 08 Jul 2015 16:00:00 +1000
<![CDATA[News - Red 5 raising up to $60 million to restart Philippines gold operations, repay debt ]]> Red 5 Limited (ASX: RED) is raising up to $60 million to recommence operations at its Siana gold mine in the Philippines and repay its outstanding debt facility.

The company plans to raise up to $50 million through a private placement of 500 million shares priced at $0.10 each to domestic and international institutional as well as domestic sophisticated investors.

It will also raise a further $10 million through a share purchase plan to existing shareholders. This includes a provision for oversubscriptions up to a further $5 million.

Proceeds will be used to implement the planned interim tailings storage solutions at the Siana gold mine ahead of planned recommencement of mining operations and to repay the debt facility with the company’s senior lender.

The combined equity raising replaces the non-renounceable Entitlements Offer which closed on 30 August 2013 and raised $8.7 million. Application monies received under the Entitlements Offer will be refunded in full.

Milling at Siana ceased on 25 April 2013 following tailings dam wall compromise and the mine site was placed on care and maintenance during May/June.

The project, as originally designed, delivers a minimum 849,000 ounces of gold production at a cash cost of sub US$400 per ounce over a ten year life

The Siana orebody remains open to the north and south, and below 400 metres vertical. The first gold was poured in February 2012.


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Thu, 05 Sep 2013 18:00:00 +1000
<![CDATA[News - RED 5 Limited to detail "Siana tailings facility" ]]> RED 5 Limited (ASX: RED) is preparing details in regards to a review of recent ground movement associated with the Siana tailings facility, with the company granted a trading halt - with its shares placed in pre-open.

RED 5 halted milling activities at Siana at midday on 25 April 2013 as a precautionary measure pending an immediate geotechnical assessment of ground movement on a small section of the tailings dam wall.

The Siana Gold Project is located in the Philippines, and is RED 5's major asset. The project, as originally designed, delivers a minimum 849,000 ounces of gold production at a cash cost of sub US$400 per ounce over a ten year life. Extensions to the mine life are currently under review.

The Siana orebody remains open to the north and south, and below 400 metres vertical. The first gold was poured in February 2012.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 30th April 2013.


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Fri, 26 Apr 2013 11:10:00 +1000
<![CDATA[News - Red5 completes US$25M financing ]]> Red5 (ASX:RED) has fully drawn a new US$25 million prepaid gold swap facility recently entered into with Credit Suisse, the proceeds of which will be used to engage a second earthmoving contract at its Siana mine in Philippines.

The facility, which was entered into by Red5's Philippine subsidiary Greenstone Resources Corporation, is repayable over thirty months starting six months after draw down.

The repayment schedule includes interest at a commercial rate and amortised establishment fees.

Also in order to protect the loan, the facility provides GRC with a  zero cost put and call structure over 40,000 ounces, which is about 13% of the production during the loan period.

The funds will be used to the award of a second earthmoving contract, which will speed up the waste movement as well as to various minor capital productivity and efficiency expenditure.

Red5 is focused on developing the Siana gold mine in the Mindanao Island in the Philippines.

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Mon, 31 Dec 2012 09:30:00 +1100
<![CDATA[News - Red 5 achieves first commercial gold production at Siana in the Philippines ]]> Perth-based Red 5 (ASX: RED) has reached the milestone of commercial gold production having achieved 30 continuous days at 60% of the 750,000 dry tonnes per annum throughput at its Siana mine in Surigao del Norte in the Philippines.

The company has so far realised revenues of US$3.3 million from three shipments totalling 562 kilograms of gold-silver dore to the Metalor refinery in Geneva.

The average throughput during the 30 day period was the equivalent of 506,000 dry tonnes per annum, 67% of nameplate production, with a maximum day rate equivalent to 2,823 dry tonnes.

Plant availability during this period averaged 91.6%, with downtime typically due to minor repairs to the MMD sizer.

Gold recovery averaged 77.2% from a head grade of 2.5 grams per tonne (g/t). The gold recovery is 3.2% lower than estimated, however as higher grades are milled during the ramp-up stage recoveries will increase.

Red 5 is now working towards achieving an interim mill throughput rate of 750,000 tonnes per annum over the next few months.



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Fri, 20 Apr 2012 09:00:00 +1000
<![CDATA[News - Red 5 pours first gold at Siana mine in the Philippines ]]> Perth based Red 5 (ASX: RED) has poured first gold at the Siana mine in Surigao del Norte in the Philippines.

The commissioning phase at the Siana mine in Surigao del Norte, Philippines has produced its first gold bar, GRC0001, comprising both gold and silver and weighing a total of 228 ounces.

The bar which is estimated at approximately 50% gold was derived from Siana low grade stockpiles, minor Mapawa low grade stockpiles and ore from the upper pit benches exposed during the pre-strip.

The bar was poured late on 3 February 2012.

Mon, 06 Feb 2012 08:50:00 +1100
<![CDATA[News - Red 5 Limited to commence drilling on LSY geophysical anomaly at Mapawa Gold Project ]]> Red 5 (ASX: RED) will kick off drilling at the Mapawa Gold Project as the company announced an extensive porphyry style exploration target had been defined from electrical geophysical surveys surrounding the ‘LSY’ prospect, 20km north of the Siana gold project in the Philippines.

In a statement, managing director Greg Edwards said a circular shaped ‘chargeability’ anomaly, approximately 1.5 km in diameter, had been modelled from the results of a dipole-dipole Induced Polarisation (IP) survey.

"Stockwork quartz veining at LSY, located above the centre of the anomaly, and the occurrence of surrounding diorite intrusive rocks provides evidence of the possible presence of ‘porphyry style’ mineralisation at depth," Mr Edwards said.

"The anomaly also broadly coincides with an area of low electrical resistivity.

"At responses above the typical lower threshold for porphyry systems the anomaly is 0.9 km in diameter, indicating a laterally extensive exploration target. "

The anomaly has been modelled to a depth of approximately 250 metres, however this is not necessarily the limit of potential sulphide mineralisation.

The nearest known porphyry deposit, Boyongan, is stated by Philex Mining Corporation to contain an estimated 105 million tonnes at 0.8% Cu and 0.98 g/t Au and occurs 14km south of LSY along the same structural corridor.

The quartz veining exposed at LSY contains significant iron oxides formed from primary sulphide minerals at depth, with recently reported surface channel sampling results indicating gold and associated base metal mineralisation over cross-strike widths of between 80 to 90 metres.

Diamond drilling by former owner Suricon intersected gold in a number of holes from surface to depths generally ranging from 100 to 120 metres, the limit of drilling. This mineralisation lies above the most intense IP chargeability response in the core of the anomaly. Importantly, the historic drilling did not test the anomaly at depth.

A drill rig has been mobilized to commence an initial programme, focused on confirmation of results from the historic drilling, and an inaugural test of the chargeability anomaly to 500 metres depth for porphyry style mineralisation.

Mon, 30 Nov 2009 06:45:00 +1100
<![CDATA[News - Red 5 clarifies statement on Mapawa target mineralisation announcement ]]> Red 5 (ASX: RED) has reiterated information on the company’s Mapawa target mineralisation statement as requested by the ASX.

Target mineralisation at the company’s LSY prospect within the Mapawa Gold Project in the Philippines, contains an estimated three to four million tonnes with an estimated gold endowment of 150,000 to 300,000 ounces, as stated in an announcement yesterday.

The Perth-based company said the estimate “was based on previous drilling in the 1990’s (40 diamond drill holes) by the previous owner Suricon, and as clearly stated it does not form part of any current Mineral Resource”.

Suricon also owned and operated the Siana Gold Mine, currently the subject of a development application by Red 5 interests in the Philippines.

The company undertook diamond drilling at Siana using the same procedures as those at the LSY prospect.

Red 5’s intensive drilling at Siana confirmed within reason the approximate grade, tonnage and physical dimensions that can be estimated using Suricon data only.

The Suricon data for the LSY prospect at Mapawa was modelled by an Australian independent consulting group for Red 5, using modern techniques and software to yield an estimated target tonnage and gold endowment based on the historic drilling. The target is yet to be tested.

New drilling is currently in the planning stage.

Today, shares in Red 5 were higher, increasing 0.5c, or 3.6 per cent, to 14.5c.

As stated the surface sampling results quoted confirm those recorded at and near surface in the historic drilling.

In accordance with JORC requirements in relation to the reporting of target size and type, it is herewith stated that the potential quantity and grade is provided as a range, is conceptual in nature, and that there has been insufficient recent exploration to define a Mineral Resource.

While this property would comfortably fall into the advanced exploration category it is uncertain if further exploration will result in the determination of a Mineral Resource, notwithstanding that the mineralisation is close to surface, close to infrastructure, within trucking distance of a planned process plant and the gold price is currently in excess of US$1,000 per ounce.

Thu, 22 Oct 2009 11:29:00 +1100
<![CDATA[News - Red 5 surface results confirm gold mineralisation potential at LSY prospect ]]> Perth-based gold explorer Red 5 (ASX: RED) has recorded promising assay results from preliminary geochemical sampling at the company’s LSY prospect in the Philippines.

The company’s share price went up slightly, on the news.

The results include two continuous sampling traverses across the strike of exposed veining and alteration with 83 metres at 1.8 g/t Au (including 38 metres at 2.5 g/t Au) and 86 metres at 1.4 g/t Au (including 31 metres at 1.9 g/t Au).

Individual multi-element grades of up to 51 g/t silver, 0.7% copper, 2.5% lead and 1.9% zinc have also been uncovered.

Stockwork veining exposed at LSY is underlain by historic drilling completed by Suricon, the former mine operator at Siana.

The veining is similar in style to that encountered in many porphyry copper-gold systems, the nearest known example being Boyongan located only 7km north west of Siana and currently the subject of detailed mining studies by Philex Mining.

The results lend strong support to the Suricon drilling data that indicates gold mineralisation extends from surface to at least 120 metres depth.

A 3 to 4 million tonne target could eventually augment the production profile at Siana. Gold grades estimated from the surface sampling and historic drilling, if consistent, imply an initial gold endowment target of 150,000 to 300,000 ounces.

Located 20km north of the company’s Siana Gold Project in Surigao del Norte province of northern Mindanao, LSY is one of several prospects within the recently granted MPSA 280-2009-XIII.

Thu, 22 Oct 2009 06:14:00 +1100
<![CDATA[News - Red 5 doubles Siana Gold reserve in Philippines ]]> Red 5 (ASX:RED) has advised that the Siana Ore Reserve has doubled with completion of underground mine study.  The Company has secured the right to earn an 80% interest in the Siana Gold project in the Surigao Gold District of the Philippines.

The combined surface stockpile, open cut and underground Probable Ore Reserve is now 5.1 million tonnes at 4.3 g/t gold (708,000 ounces) and 8.9 g/t silver (1.46 million ounces).  An increase of 105% by gold ounces over the previous Reserve estimate.

The combined Probable Reserve represents an aggregate 92% conversion of the total Indicated Resource (by gold ounces).  The open pit Probable Reserve, 3.1 million tonnes at 3.4 g/t gold, is planned to be mined by conventional methods. 

The underground Probable Reserve, 1.9 million tonnes at 5.8 g/t gold, is planned to be mined by an underhand cut and fill technique. There is potential for future upgrade and conversion of a portion of the remaining predominantly Inferred underground Resources of 1.5 million tonnes at 7.1 g/t gold (350,000 ounces).

The ore Reserves extend to approximately 400 metres below surface and the Mineral Resource is open to the north, south and at depth below 500 metres.

Long term mine plan

It is likely that with additional detailed underground drilling a portion of the current Inferred Resource
would be upgraded to Indicated Resource status and ultimately, conversion to a reserve category. To estimate the potential for eventual extraction similar modifying factors to those used in the current Ore Reserve estimate were applied to the known Inferred mineralisaton.

A mine design using road headers and an annual production rate of 400,000 tonnes would yield an additional 1.4 million tonnes at 5.8 g/t gold (267,000 ounces) and 9.2 g/t Ag (420,000 ounces) from underground.

Process recovery

Metallurgical testing during the open pit feasibility study established that a standard gravity and CIL
process flowsheet would yield average metal recoveries of 85.4% Au and 76.0% Ag. Diagnostic tests to identify the gold association in the open pit tails indicated that 69% to 79% occurs with sulphides.

Feasibility Study

Compilation of the project feasibility study is near completion.  Ongoing priority activities include permitting and funding.

Tue, 31 Mar 2009 11:59:00 +1100