King of the Hill bo­nanza for Red 5

Kalgoorlie Miner - - MINE TALK - Josh Chiat

Red 5 has al­most tripled its re­sources at the King of the Hills de­posit near Leonora to 1.9 mil­lion ounces in a move it says will be a “game changer” for the north­ern Gold­fields gold mine.

The new in­di­cated and in­ferred re­source comes after drilling along what Red 5 has termed the east­ern mar­gin con­tact of the mine.

Com­pany ge­ol­o­gists be­lieve the area could open up the high-grade un­der­ground mine to bulk min­ing meth­ods not seen since its time as an open pit in the early 2000s.

Red 5 has al­ready com­mis­sioned a 30,000m drilling pro­gram to ex­tend the re­source and trig­gered a “strate­gic re­view” on how to de­velop the mine, which is cur­rently be­ing used as satel­lite feed for the 30-year-old Dar­lot gold treat­ment plant near Le­in­ster.

The new King of the Hills re­source cov­ers a 2200m stretch of strike 130m to 300m be­low the his­toric Tar­moola open pit, with Red 5 man­ag­ing di­rec­tor Mark Wil­liams say­ing it could be big enough to jus­tify its own pro­cess­ing plant.

“Based on the drilling com­pleted to date and as­sess­ing only a por­tion of the broader gra­n­odi­or­ite con­tact zone, the size and scale of this re­source gives us more con­fi­dence that King of the Hills can ul­ti­mately sup­port a largescale bulk min­ing oper­a­tion,” he said. “Given the strength of this early re­sult, we’re now un­der way with pre­lim­i­nary stud­ies to as­sess the mer­its of a stand­alone min­ing and pro­cess­ing oper­a­tion.”

In­vestors sent shares in the com­pany climb­ing on the news, with Red 5 stock up 1.1¢ or 15.7 per cent to 8.1¢ a share on the news on Tues­day.

Red 5 shares closed 6.2 per cent lower yes­ter­day at 7.6¢.

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