After several record-breaking months, the new KOTH mill delivered production of 102,572 ounces, within its target range of 90,000-105,000oz.
While costs are still being tallied, Red 5 said it expects all-in sustaining costs to land in its target range of A$1750-1950/oz.
Processing in the new mill began in May 2022, with a steady ramp-up over the past year as open pit and higher-grade underground ore were gradually introduced and blended into the new 4-4.7 million tonne per annum mill, resulting in the June half delivering 61,705oz, including 24,033oz in June alone.
While the ramp-up has been slower than originally planned, a recent shutdown has aided improvements and a new tailings facility has started operating that should provide additional benefits.
The mill continues to outperform, operating at an annualised 5.5Mtpa with recoveries steady at around 93.4%.
Studies are underway to finalise an expansion.
It has longer term ambitions of breaking through the 200,000ozpa and then 300,000ozpa marks.
The miner announced a A$132 million capital plan earlier this year to help fund its exploration and expansion studies.
With plans to be debt-free by mid-2026, and so much consolidation around Leonora with the recent purchase of St Barbara assets by Genesis Minerals, a partial takeover of Dacian Gold, and Silver Lake Resources being left on the sidelines, and Red 5 owning the largest processing facility for 100km, plus the mothballed 1Mtpa Darlot mill, there’s plenty of scope for bolt-in acquisitions and toll treating.
