Red 5’s King of the Hills (KOTH) gold mine in Western Australia has returned consistent results as the company announces its 2023–24 financial year (FY24) results.
FY25 sales guidance for KOTH stands at 210,000–230,000 ounces, with mine production continuing to comprise base load tonnage from the open pit.
Red 5 said this would be supplemented by higher grade underground production from both KOTH and the satellite Darlot operation.
“Underground ore production at King of the Hills is expected to be consistent year-on-year, with production predominantly sourced from the Western and Regal mining areas,” Red 5 said.
“Both the Western and Regal areas will receive increased exploration drill metres to target life of mine extensions immediately beyond known mineralisation and current development.”
The completed merger with Silver Lake was a particular highlight of Red 5’s FY24, creating a diversified mid-tier gold miner.
“[The] balance sheet transformed post merger, with cash and deposits of $442.5 million and bullion of $11.2 million at 30 June 2024,” Red 5 said.
Group gold sales hit 223,498 ounces for the year, underpinned by the 29 per cent year-on-year increase in sales from KOTH to 211,939 ounces in its second full year of operations.
Studies have now commenced at KOTH to engineer the appropriate plant modifications to match the longevity and scale of the operation.
“Modifications will predominantly focus on the crushing circuit, wet plant tankage and classification circuit, to facilitate consistent performance at the permitted throughput capacity of six million tonnes per annum,” Red 5 said.
“The additional capacity will be utilised to process current ore stockpiles and projected stockpiles generated from the King of the Hills open pit.”
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