I'm impressed.
"December 2017 Quarterly Activities Report Strong first quarter for Red 5 as an Australian gold producer with production of 17,777oz; maiden 895koz JORC Resource and 131koz Reserve at Darlot underpins 2018 outlook; Group Mineral Resources in WA increased to 1.3Moz1 inclusive of King of the Hills, where underground mining is underway Operations – Darlot Gold Mine, Western Australia • Acquisition of the Darlot mining operation completed on 2 October 2017, with the ownership transition, integration of the operation and existing workforce successfully completed. • Gold production of 17,777oz and gold sales of 16,150oz for the quarter, representing a strong maiden production performance under Red 5’s ownership. All-in sustaining costs (AISC) of A$1,291 per ounce. • Encouraging results from the remnant mining program in the upper and mid-levels of the mine, with stopes in the first 3 extensions to existing mining areas exceeding expectations in terms of mined tonnages and grade. • Strong performance by the Darlot processing plant, with periods of throughput reaching up to 100 tonnes per hour and opportunities identified to increase capacity. Development – King of the Hills Gold Project (KOTH), Western Australia • The first stockpiled ore from King of the Hills was successfully trucked and milled at Darlot. • Underground mining contract awarded to experienced underground mining contractor, Pit N Portal Mining Services, and underground mining commenced in early January 2018 following receipt of mining approvals. • Initial results from heap leach amenability test work on lower grade ores shows potential for a longer term growth project at KOTH which will be pursued in 2018. Exploration and Resource Development • Maiden JORC 2012 Mineral Resource estimate completed for Darlot, delivering a significant increase in contained gold ounces over the previously reported SAMREC estimates (1.2Mt @ 5.97g/t Au for 224,000oz2 ): Measured, Indicated and Inferred Mineral Resource of 6.0Mt @ 4.6 g/t Au for 895koz of contained gold • JORC 2012 Resource includes a maiden Probable Ore Reserve of 1.0Mt @ 4.0 g/t Au for 131koz of contained gold, delivering additional mine life for the Darlot mining operations. • Multi-pronged exploration and resource definition programs commenced post quarter end at Darlot and King of the Hills to further expand and de-risk the Resource and Reserve base, with numerous high-priority targets identified, including targeting immediate extensions of the CDA Oval deposit immediately along strike of and below current workings. • Grade and resource drilling also commenced in January 2018 at King of the Hills with drilling initially targeting the northern section of the mine. Finance and Outlook • Group cash and metal in account of A$21.8M as at 31 December 2017. • Gold production3 for calendar year 2018 expected to be in the range of 85-95,000oz.
RED Price at posting:
7.1¢ Sentiment: Hold Disclosure: Held
