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Red 5 Ltd.
Summary
| Project: | Darlot Gold Mine | |
|---|---|---|
| Deposit: | Darlot Gold Mine | |
| Location: | Australia | |
| Commodities: | Gold | |
| Date: | 11/21/2018 | |
| Report Code: | JORC | |
| Report Type: | Exploration/Drilling Update | |
| Project Stage: | Active Mining & Production | |
| Report details: | 21-11-2018: Red 5 Ltd. announces an Exploration/Drilling Update report for its Darlot Gold Mine deposit at the Darlot Gold Mine project. Drilling results incl. 11.06m @ 4.4g/t Au from 461.8m. Red 5 Limited (“Red 5” or “the Company”) (ASX: RED) is pleased | |
| Resources: | (not mentioned in this report) | |
| CP/QP: | [Overall Report]: Byron Dumpleton (Internal) | |
| ABSTRACT: | Red 5 Limited (“Red 5” or “the Company”) (ASX: RED) is pleased to provide an update on operations and exploration activities at the 100%-owned Darlot Gold Mine, located ~900km north-east of Perth in the Eastern Goldfields region of Western Australia. 30 YEARS OF CONTINUOUS OPERATION This month, the Darlot Gold Mine celebrates its 30-year anniversary of continuous gold production, with total output of 17.8 million tonnes grading 4.8g/t Au for 2.8 million ounces of contained gold since mining commenced in November 1988. The operation has been previously owned and operated by Sundowner Minerals NL, Forsayth NL, Plutonic Resources Ltd, Homestake Mining Company, Barrick Gold Corporation and, prior to its acquisition by Red 5 in October 2017, by Gold Fields Limited. This significant milestone coincides with the commencement of mining in a newly discovered sector of the mine, the high-grade Oval West deposit which was discovered by Red 5 in February this year Bulk stoping is now underway at the high-grade Oval West deposit, which hosts an Ore Reserve of 325,337 tonnes grading 5.9g/t Au for 61,571oz of contained gold (see ASX announcement on 19 June 2018). Production from this new high-grade sector is expected to contribute to a strong uplift in gold production from Darlot and a reduction in all-in sustaining costs (AISC) over the next two years. This is underscored by the Darlot Processing Plant recently recovering 818 ounces in a day, breaking all previous records. Gold production for the December 2018 quarter-to-date stands at ~14,500 ounces at 19 November 2018, putting the Company on-track to achieve its forecast production guidance for the December 2018 Quarter of 26,000-30,000 ounces of gold at an AISC of A$1,450 – A$1,650 per ounce. PEDERSON TO DELIVER ADDITIONAL OUNCES CLOSE TO SURFACE Recent work undertaken by Red 5 has highlighted the potential for continued long-term growth in the Darlot mining inventory, with both near-mine and regional targets delivering very positive results. In the near-mine environment, a review of the upper Pederson orebody at Darlot has identified a remnant mining opportunity that is amenable to extraction using airleg mining (see Figure 1). Airleg mining offers the opportunity to supplement the Darlot mill feed with near-surface ore from previously mined areas. These airleg mining opportunities at Pederson host an Ore Reserve containing 108,975 tonnes grading 3.9g/t Au for 13,810 ounces of contained gold. The airleg program is expected to commence shortly and will be conducted concurrently with further engineering and geological assessments to identify additional opportunities for narrow vein mining.. | |
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