Red 5 Limited (ASX: RED) has reported further “outstanding” results from Resource extension, in-fill and grade control drilling at the KOTH gold mine, located in the Eastern Goldfields region of Western Australia.
KOTH has a current bulk Mineral Resource estimate totalling 4.1 million ounces of contained gold, with these latest results both increasing confidence in the existing Resource as well as indicating the potential to expand the Mineral Resource in several directions.
The existing 4.1Moz Resource will underpin the completion of an updated Ore Reserve for KOTH, which will form part of the Final Feasibility Study for the proposed bulk open pit and underground mining and processing operation.
Managing Director, Mark Williams, said recent drilling at King of the Hills (KOTH) had delivered a host of excellent results.
“This has been a highly successful drilling programme that has both increased our confidence in the existing 4.1 million ounce KOTH bulk Mineral Resource model as well as identifying targets for future Resource growth.
“We believe that the existing KOTH Resource, which ranks as one of the top-20 gold deposits in Australia, already has the potential to underpin a high-quality, long-life mining operation. These latest drilling results further enhance our view that we could be mining gold from this area for many years to come.
“With the company now putting the finishing touches on a Final Feasibility Study for the bulk mining operation, which is on track for completion this month, we have demobilised the drill rigs at KOTH in preparation for the planned commencement of early site works over the next few months.
“Drilling programs are continuing at the Darlot Mining Hub, with Resource drilling currently underway at the Great Western satellite deposit – where mining is planned to commence later this year – with programs also planned at the Mission and Cables deposits, followed by the highly-prospective Ockerburry area.”
These latest drilling results, which represent 17,908m of drilling (5,298m inside the existing Resource model and 12,610m outside the existing Resource model), focused on:
- Bulk stope potential within the Western Tension Veins;
- Resource extension opportunities below the W4920 level;
- Resource extension opportunities to the north “down the nose” of the granodiorite contact;
- The potential western extension of tension veins in the footwall of the Imperial Fault;
- Grade control drilling beneath the South Pit; and
- Grade control drilling at the Baelor lode.
Mr Williams said the completed drilling has demonstrated that the Resource mineralisation extends below the W4920 level and to the north “down the nose” of the granodiorite contact, as well as demonstrating that mineralisation also extends west of the previously-interpreted hanging-wall of the Imperial Lode.
Mining activities at KOTH will be progressively scaled-down over the remainder of the year ahead of the planned start of construction for the proposed bulk mining operation in the December 2020 Quarter.