Company expects to begin first gold production in the June 2022 quarter
Red 5 has secured approval of the mining permit for its 100% owned King of the Hills gold project (KOTH project) in Western Australia.
The mining proposal approval was given by Western Australia’s Department of Mines, Industry Regulation and Safety (DMIRS).
It is the last major permit needed for restarting mining activities at the KOTH project from next year, said Red 5.
Red 5 achieved another milestone for the gold project having approved phase 2 of the engineering, procurement, and construction (EPC) contract for the processing plant.
The approval enables MACA Interquip, the EPC contractor, to increase the mobilisation of its construction personnel to the project site in the coming months.
The project involves the development of 2.4 million ounces (Moz) contained in the gold deposit located in the Eastern Goldfields region.
The KOTH project, which involves open pit and underground mining, has a mining life of 16 years.
According to Red 5, the first gold production from the carbon in leach plant at the KOTH gold mine is expected to begin in the June 2022 quarter. The processing plant will have a capacity of four million tonnes per annum (Mtpa).
The Australian gold producer said that it is finalising the debt financing for the project with a tier-1 banking syndicate. Completion of the debt financing is anticipated in the March 2021 quarter, said Red 5.
Red 5 managing director Mark Williams said: “The manufacture and delivery to Australia of all key long-lead items for the plant is also well on track, which will help to ensure that key construction and installation milestones can be achieved once construction of the plant moves into full swing in the second half of this year.
“We are very encouraged by the important milestones being achieved, and we are looking forward to the next step-up in activities during the June 2021 Quarter as the key elements of this new large, long-life Australian gold mine continue to take shape.”