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King of the Hills gold project, Australia – update

8th April 2022

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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

Location
The Eastern Goldfields region of Western Australia.

Project Owner/s
Gold producer Red 5.

Project Description
Red 5 has approved the final feasibility study for a proposed standalone, four-million-tonne-a-year bulk mining and processing operation at KOTH, with an initial mine life of 16 years and the potential to expand this to six-million tonnes a year.

Life-of-mine production is estimated at 2.5-million ounces of contained gold.

Gold production in years 1 to 6 is expected to average 176 000 oz/y, while peak gold production of 203 000 oz/y will be achieved in 2024, benefiting from underground mining of one-million tonnes a year in years 1 to 4.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$1.1-billion and an internal rate of return of 64.3%, with a payback of 25 months and a gold price of A$2500/oz.

Capital Expenditure
The feasibility study has delivered a capital cost of about A$226-million.

Planned Start/End Date
First production is scheduled for the June quarter of 2022, with three months of mine prestrip.

Latest Developments
Red 5 has restarted underground mining at the KOTH and is on track to produce its first gold in the current quarter.

The commissioning of the crushing circuit has been completed, along with commissioning of the gas pipeline and the power station, while commissioning of the semiautogenous grinding mill has started.

“With first gold production expected in the current quarter at King of the Hills, our openpit mining teams are operating 24/7 and underground mining is now ramping up on schedule,” MD Mark Williams has said.

Key Contracts, Suppliers and Consultants
None stated.

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

Edited by Creamer Media Reporter

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