The KOTH mill is processing at 4.7 million tonnes per annum, and up to an annualised 5Mtpa, but was designed to scale up to 6Mtpa.
Red 5 remains confident it can achieve 5.5Mtpa with sequential debottlenecking, improving the grinding, tails pumping, leaching and elution components.
Growth beyond 5.5Mtpa is also under the microscope and will require investment in the crushing and processing circuit, and optimisation of the open pit mining schedule.
The miner expects to finish its studies by mid-year.
The KOTH and Darlot operations produced a significant boost in production for the December quarter, up from 18,586 ounces in the September quarter to 36,260oz.
Of that, 12,317oz came from Darlot, about 100km to the north.
Reporting of quarterly all-in sustaining costs will begin this quarter.
Red 5 is targeting production of 90,000-105,000oz at A$1750-1950/oz for FY23, and in for the first six months has produced 62,970oz.
Mining in the KOTH open pit has started digging into the main contact zone between the granodiorite and ultramafic rock, where the majority of higher-grade gold is located.
Reconciliations are in line with the reserve model, although recent grade control drilling suggests the orebody improves at depth in some blocks, with tonnes and grade higher than reserves.
Stoping has commenced in the KOTH underground.
At Darlot , Red 5’s underground grade control and resource extension drilling has delivered results that support the next two years of the mine plan. That includes December’s jaw-dropping 3m at 2999 grams per tonne at the St George satellite pit area.
Operationally, a simplified mine plan is expected to deliver improved results going forward.
In terms of its regional exploration, aircore drilling at its Yandal South project has identified wide zones of anomalous mineralisation along a 1.2km strike length at the NW Structure, with follow up drilling planned.
Assays are pending.
Red 5 has started chipping away at its debts with the first $10 million payment made, reducing its facility to $164 million.
Sales of 35,100oz during the quarter at an average $2348/oz generated revenue of $82 million.
The company started the new year with 293,863oz hedged to September 2026 at an average price of $2420/oz, about 40% of planned production.
It has bullion and cash of $26 million, of which $8 million is restricted.
It opened the December quarter with $38 million, but spent $66 million in operating costs and $35 million in growth projects.
