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Red 5’s King of the Hills continues to take shape amid construction ramp-up

Last updated: 12:09 08 Sep 2021 AEST, First published: 11:58 08 Sep 2021 AEST

Red 5 Ltd - Red 5’s King of the Hills continues to take shape amid construction ramp-up
Red 5 managing director Mark Williams (left) and WA’s Minister for Mines & Petroleum Bill Johnston visited King of the Hills on September 2.

Red 5 Ltd (ASX:RED) is a step closer to bringing its King of the Hills’ (KOTH) processing plant online as construction progresses on schedule and within budget at Leonora, Western Australia.

Over August, the ASX-lister saw all the components for its semi-autogenous grinding (SAG) mill arrive on-site, while the plant’s administration building is now complete.

Outside of the processing plant, KOTH’s worker village is now fully operational, while drilling at the project’s underground mine has also recommenced.

All of this activity underpins Red 5’s primary vision: to execute its first gold pour at King of the Hills in the June quarter of 2022.

“Hitting key milestones”

Speaking to the progress to date, Red 5 managing director Mark Williams said King of the Hills was beginning to take shape as Australia’s new mid-tier gold mine.

“We are continuing to reap the benefits of having locked in so many key long-lead items and contracts early in the piece last year, and – thanks also to the efforts of our EPC partner MACA Interquip – the project is continuing to hit key milestones and progress on schedule and on budget for first gold by the June quarter of 2022.”

Construction advances

As activity ramps up ahead of the procession plant’s commissioning — expected in roughly seven months — work on KOTH’s maintenance workshop and warehouse is nearing completion.

The concrete suspended slab for the gyratory crusher has also been poured, while construction on the run-of-mine (ROM) walls has since begun.

KOTH’s carbon-in-leach (CIL) tanks are fully welded except for the access panels at the base, which will be installed once the tank agitators are installed and the upper levels are painted.

So far, six of the eight CIL tank agitators have been assembled, while the lime silo has also been installed.

In addition, all in-ground conduits for the processing plant’s power station have been installed, meaning work on the concrete surface slabs has now commenced.

Finally, the contractor assigned to construct the lift for tailings storage facility 4 has mobilised to site and earthworks have commenced.

Next on the agenda

Looking ahead, processing plant construction will continue to ramp as Red 5 transitions KOTH to producer status.

One drill rig is working at the project’s underground mine, with another poised to mobilise in April 2022.

KOTH’s hosts a 4.12-million-ounce mineral resource and a 2.4-million-ounce ore reserve, firmly establishing the asset as one of Australia’s largest gold plays.

Once it enters production, Red 5 hopes to generate 176,000 ounces of gold per annum over the first stage of the asset’s 16-year mine life at a comparatively low all-in sustaining cost (AISC) of $1,339 per ounce.

Williams continued: “We were delighted last week to host the WA Minister for Mines and Petroleum, the Hon Bill Johnston MLA, together with a group of key stakeholders including representatives of the Traditional Owners, our construction partners and leading Australian media to King of the Hills for a tour of the project.

“They were able to see the progress with construction of the process plant as well as the other key items of infrastructure around the site, and also visit the impressive King of the Hills underground mine, which will be back in full swing next year as a key contributor of ore alongside the large open pit to the new more than 4.7 million tonnes-per-annum processing plant.

“Despite the challenging environment for people, equipment and services across the WA mining industry, King of the Hills remains within budget and on schedule, which is a credit to the diligence, hard work and focus of our team.”

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