Red 5 to produce commemorative ingots

RED 5 and the Perth Mint have announced a collaboration to mark the first gold production from Western Australia’s newest gold mine, the A$226 million King of the Hills operation, near Leonora.
Red 5 to produce commemorative ingots Red 5 to produce commemorative ingots Red 5 to produce commemorative ingots Red 5 to produce commemorative ingots Red 5 to produce commemorative ingots

Red 5's newly commissioned KOTH mill

Haydn Black

Reporter

Red 5 said the one ounce ingots will be minted from the first gold pour, and will be available "at market prices" to interested parties. 
 
Gold is trading about $2680/oz.
 
The new 4.7 million tonne per annum processing plant at KOTH is now processing ore, initially a mix of low-grade development ore from stage one of the open pit and existing stockpiles, while final commissioning of the processing circuit is completed. 
 
First gold is expected in the near future, before the company's end of the quarter deadline.
 
Red 5 managing director Mark Williams said KOTH remained on time and on budget, with underground and open pit mining now in full swing, and the third open pit fleet now ramping up.
 
The company envisages at least a 16-year mine life from KOTH, based on reserves of 2.4Moz. Resources are 4.12Moz.
 
The new plant will replace the aging Darlot mill to the north that is being wound down and will be placed on care and maintenance. 
 
KOTH will become a central processing hub for Red 5's Darlot underground and satellite open pits in the Leonora district, such as Great Western. 
 
Red 5 expects KOTH will become a long-lived, top 10 Australian gold mine.
 
The company produced 13,185oz at all-in sustaining cost of A$2552/oz last quarter, with full-year guidance of between 62,000-72,000oz at $2400-$2500/oz.
 
KOTH is expected to be reach full production rates over the September quarter
 
Life of mine average production is expected to be 146,000ozpa, with peak production of 203,000oz in 2023-24.
 
Red 5 ended the March quarter with cash and bullion of almost $48 million, of which $28.5 million is allocated to reserve accounts and bank guarantees for KOTH. Debts were $123 million.
 
Shares in the miner were up 2% this afternoon at 35.2, valuing it at $812 million.
 
Red 5's stock has traded between 16c and 47c over the past year.