Red 5 wows with maiden resource
7th December 2018
Resources Rising Stars
RED 5 has announced a maiden 1.88 million ounce resource for the newly discovered Eastern Margin Contact at its King of the Hills gold mine in Western Australia (reports MiningNews).
The indicated and inferred resource is 28.7 million tonnes at 2 grams per tonne gold for 1.88Moz, using a 1gpt cut-off.
The resource covers 2200m of the estimated 4000m strike length to a depth below pit of 130m in the south and 300m in the north.
The southern end has 6000oz per vertical metre, while the northern end has 5000oz per vertical metre.
Mineralisation remains open down-dip and along strike in both directions.
The Eastern Margin Contact is adjacent to existing mining areas and is being assessed as a bulk mining opportunity.
Red 5 managing director Mark Williams described the initial resource as a game-changer.
"Based on the drilling completed to date and assessing only a portion of the broader granodiorite contact zone, the size and scale of this resource gives us more confidence that King of the Hills can ultimately support a large-scale bulk mining operation," he said.
"Given the strength of this early result, we're now underway with preliminary studies to assess the merits of a standalone mining and processing operation."
Red 5 plans to evaluate the bulk mining opportunity in three overlapping phases.
Phase one is aiming to upgrade the bulk mining resource, with a 30,000m drilling program already underway.
The second phase will look further, with the potential for the granodiorite/ultramafic contact to host further mineralisation outside the existing mining area.
Phase three will assess development options, open pit and bulk underground potential, as well as further exploration potential.
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