Red 5 (ASX:RED) has reported a fourth consecutive month of increasing production from its King of the Hills mine, located in the Leonora region of WA’s Eastern Goldfields.
Simultaneously, Red 5 has released findings from an underground drilling campaign at the mine, outlining additional reserves that will be extracted over the next year or so.
Mark Williams, CEO of Red 5, announced during the Diggers and Dealers conference in Kalgoorlie that the mine yielded 61,705 ounces of gold in the three months leading to June. This marked a significant surge of over 50% compared to the 40,869 ounces produced in the March 2023 quarter.
As of June 30, the company held $45.9 million in cash and bullion, and during the quarter, it reduced its net debt position by $44.5 million.
The drilling campaign, conducted over a six-month period up to June, encompassed a total of 19,196 metres. Noteworthy assay results were recorded across various crucial mining areas within the mine, including the Regal area, the Eastern Flanks, the West Bulk, and the Central areas.
Red 5 stated that these results suggest the potential for extending the mine life at the King of the Hills (KOTH) mine, particularly within the Regal and Eastern Flank zones.
Mark Williams commented in a statement to the ASX, “Our ongoing underground drilling programs are consistently reinforcing the robust nature of the King of the Hills resource and reserve models. The latest results from grade control and resource extension drilling support our mine plan for the upcoming 12 months and also define extensions in key mining areas like Regal, Eastern Flank, and West Bulk.”
He further added, “In the last year, our drilling efforts have covered 85% of the FY24 mine plan, providing strong confidence for the year ahead's mining operations. Despite the substantial amount of drilling carried out so far, large portions of the King of the Hills orebody remain relatively unexplored. This presents an opportunity to continue expanding the existing resource and reserve inventory, thereby further extending the current mine life.”
