PERTH (miningweekly.com) – Gold miner Red 5 on Thursday reported that full-year production for the 12 months to June had reached target.

Gold production in the full year reached 76 104 oz, which was within the guidance of between 74 000 oz and 78 000 oz, with gold sales for the full year reaching 75 907 oz at an all-in sustaining cost of A$2 273/oz.

Gold production in the three months to June reached 15 251 oz, down from the 19 047 oz produced in the March quarter, with gold sales in the quarter reaching 14 552 oz, compared with the 19 011 sold last quarter.

Red 5 reported that consolidated all-in sustaining costs for the quarter reached A$2 461/oz, compared with the A$2 402/oz in the previous quarter.

“Red 5 has continued to achieve strong progress during the June quarter with the construction of our 2.4-million-ounce, 16-year life-of-mine King of the Hills (KOTH) gold project. The development of our new flagship gold mine, which is the largest new gold mine currently under construction in Australia, is progressing on time and within budget,” said MD Mark Williams.

“An important milestone for the company was achieving financial close on the A$175-million KOTH project debt facility with our banking syndicate on June 30, positioning us to complete the first drawdown from this facility in July 2021.

“The KOTH site is currently a hive of activity, with the majority of long-lead items having arrived in Western Australia, and final deliveries expected in the September quarter 2021. Our work programmes are on track to achieve first gold production from the new processing plant in less than 12 months,” Williams said.

The company has awarded all of the key contracts for KOTH, with the underground and openpit mining services contract awarded to Macmahon Contractors following the completion of a competitive tender process.

“During the quarter, mining operations at the Darlot gold mine and Great Western satellite openpit were unfortunately impacted by labour supply issues that have become widespread across the Western Australia mining industry.

“However, these operator shortages were largely resolved in June and, pleasingly, mining rates at both operations achieved forecast levels for the month of June 2021, with production for the June quarter 15 251 oz of gold.”

Red 5 is currently evaluating several initiatives to enhance the life of the Darlot operation, and will update the market on this, as well as production and cost guidance for 2022, during the September quarter.