Red 5 Limited (ASX: RED) is confident it is on target for a Q3 2020 release of a Final Feasibility Study (FFS) for an integrated bulk open pit and underground mine and processing operation at the King of the Hills (KOTH) gold project in WA.
Managing Director, Mark Williams, said that all aspects of the KOTH Final Feasibility Study were progressing to plan, with the study now entering its final phase ahead of its scheduled completion in the September 2020 Quarter.
We continue to systematically progress towards completion of the FFS, with mining and engineering studies well advanced and project approvals on schedule,” Mr Williams said.
“Strong progress is being made with planning for site early works and ordering of long-lead items, with the delivery of a recently-purchased accommodation village and offices expected to coincide with the planned commencement of site early works in the second half of CY2020.
“Over the coming weeks we expect to complete our review of the designs and costings for the Process Plant and other on-site infrastructure, and finalise the tailings storage management report, while also progressing heritage surveys over key infrastructure corridors.
“The successful completion of these workstreams will put us on track to deliver the FFS on schedule in the September 2020 Quarter, marking a major milestone towards the development of one of Australia’s most exciting new gold development projects.”
Initial mine plans and schedules are expected early next quarter with an updated KOTH Ore Reserve to follow. The Ore Reserve will form part of the Final Feasibility Study.
Indicated and Inferred Resource estimates for the various deposits that comprise the proposed KOTH open pit and underground mining operation have been previously reported and include:
- KOTH: 90.7Mt at 1.4g/t Au for 4.07Moz;
- Rainbow: 1.6Mt @ 1.3g/t Au for 67,000oz;
- Severn: 0.9Mt @ 1.6g/t Au for 47,900oz;
- Cerebus-Eclipse: 2.8Mt @ 1.2g/t Au for 112,000oz); and
- Centauri: 1.7Mt @ 1.5g/t Au for 81,300oz.
Red 5 has identified and procured 59 x 4-bedroom and 2 x 2-bedroom portable accommodation units, five laundries, a Wastewater Treatment Plant and a 1,050m2modular office building. Cost savings are estimated to be ~$3-$4 million compared to the purchase of new facilities.
Stage 1 applications have been lodged for Government approvals necessary to conduct site early works, including construction of the Village Accommodation and Wastewater Treatment Plant (WWTP). These applications are for approval of a Mining Proposal, Mine Closure Plan, Native Vegetation Clearing Permit (Department of Mines, Industry Regulation and Safety) and a Works Approval for the WWTP (Department of Water and Environmental Regulation).
Tenements securing the power transmission corridor which link the KOTH site to the Goldfield Gas Pipeline have been applied for with the majority now granted. During June and July 2020, an archaeological and ethnographic survey of the corridor will be conducted. Access agreements will be negotiated with the two Pastoral Lease owners along the corridor route. Studies already complete along the corridor include flora and fauna studies.
Applications under the Aboriginal Heritage Act, 1972 which are necessary for the crossing of Sullivan’s Creek to allow direct haul road access the north-west satellite deposits (Centauri and Cerebus-Eclipse) have been referred by the Aboriginal Cultural Material Council to the Minister for Aboriginal Affairs for decision. Red 5 had consulted and received consent from the Traditional Owners before making this application.