Name of the Project
King of the Hills (KOTH) gold project.

Location
Western Australia.

Project Owner/s
Red 5.

Project Description
The KOTH deposit has a maiden openpit probable ore reserve of 36-million tonnes grading 1.25 g/t gold for 1.45-million ounces of contained gold, while the Rainbow deposit has a maiden openpit ore reserve of 1.4-million tonnes grading 1 g/t gold for 44 000 oz gold.

A prefeasibility study (PFS) on the project has outlined the potential for a ten-year openpit operation, delivering average life-of-mine production of 140 000 oz/y, with substantial upside potential from the future inclusion of 1.1-millon ounces of underground resources, regional oxide deposits and ongoing exploration.

The project will include the construction of a four-million-tonne-a-year carbon-in-leach processing plant on site, which provides sufficient processing capacity for an integrated bulk openpit and underground mining operation.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The project has an initial capital cost of A$218-million.

Planned Start/End Date
Not stated.

Latest Developments
Red 5 has completed a second tranche share placement of more than 522.9-million shares, at 18c each, following shareholder approval.

The company had a A$125-million capital raise at the end of March 2020, consisting of a two-tranche placement to sophisticated and professional investors.

The first tranche comprised 171.5-million shares and raised A$30.7-million under Red 5’s placement capacity, while the second tranche, to raise A$94.13-million, had been subject to shareholder approval.

The miner’s shareholders approved the placement on May 7.

Red 5 previously said that the capital raise derisked the funding requirements to develop the proposed integrated bulk openpit and underground mining and processing operation for the KOTH project.

A final feasibility study for the proposed project is on track for completion in the September quarter of this year.

Red 5 MD Mark Williams has said that significant progress has been made across multiple workstreams for the feasibility study over recent weeks, with several key items on track for completion in June 2020.

“In addition to boosting King of the Hills’ satellite deposit mineral resource to over 300 000 oz, the completion of the mineral resource estimates has allowed our team to commence mining studies for the inclusion of these deposits in our overall mine plan and schedule.

“On other fronts, prefeasibility pricing estimates for openpit mining costs and our energy requirement on the proposed ‘build, own, operate’ basis have been confirmed by expressions of interest from mining contractors and indicative proposals received from energy suppliers.

“We have also completed a work programme to drill and assay the low-grade stockpiles . . . at the King of the Hills site, with a view to including these in future mineral resource models and, ultimately, in our mine plan.”

Early works design and procurement activities are also well under way.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Red 5, tel +61 8 9322 4455 or email info@red5limited.com.