Red 5 reports KOTH Gold Project milestones
Author: Source: Date:2021-09-15 16:46:43
Red 5 Limited has announced two significant new milestones in the development of the 2.4 million oz, 16-year life-of-mine King of the Hills (KOTH) Gold Project in Western Australia.
The KOTH Mining Proposal has been approved by the Department of Mines, Industry Regulation, and Safety (DMIRS). This is the final significant permit required for the restart of mining activities to proceed at KOTH in 2022.
The company has now also approved Phase 2 of the Engineering, Procurement & Construction (EPC) contract, which will allow the company’s EPC contractor, MACA Interquip to ramp-up the mobilisation of its construction teams in the coming months.
The majority of budgeted expenditure for Phase 2 comprises fixed-price contracts. To date, the project is US$10 million under budget and on track to deliver first gold production from the KOTH processing plant in the June 2022 Quarter.
Red 5 is finalising the debt financing for the KOTH Project with a Tier-1 banking syndicate, with completion expected in the March 2021 Quarter.
Red 5 Managing Director Mark Williams said the KOTH construction and development teams were continuing to achieve solid progress, with the overall project under budget and on track to deliver first gold production on schedule by mid-2022.
“With all major mining approvals now in place and the debt funding process on track for completion this quarter, Red 5 has approved Phase 2 of the EPC contract. This will allow MACA Interquip to ramp-up the mobilisation of their construction teams over the coming months. 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 that key infrastructure along with miner lamps safety equipment procurement will be ready, as the key elements of this new large, long-life Australian gold mine continue to take shape.”
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