Red 5 Ltd. has reported an updated mineral resource estimate for the Eastern Margin Contact Zone of its King of the Hills gold mine in the Eastern Goldfields region of Western Australia. Indicated and inferred resources now total 90.7 million metric tons (mt) at a grade of 1.4 grams/mt gold for 4.07 million ounces (oz) of contained gold.

The mineral resource includes both open-pit and underground components. The open-pit indicated and inferred resource totals 80.4 million mt grading 1.3 g/mt gold for 3.37 million oz of contained gold at a 0.4 g/mt gold cut-off, while the underground indicated and inferred resource stands at 10.3 million mt grading 2.1 g/mt gold for 0.7 million oz of contained gold at a 1 g/mt gold cut-off.

The King of the Hills property continues to have significant potential for further resource growth, with ongoing drilling planned and a large proportion of the prospective granodiorite-ultramafic contact remaining untested by drilling. A final feasibility study and an updated ore reserve for an integrated bulk open-pit and underground mine and stand-alone process plant is on-track for completion in the third quarter of 2020.

Red 5 Managing Director Mark Williams said, “The updated mineral resource model has seen a 69% increase in the open-pit component of the mineral resource. We are now looking at a very large-scale open-pit mining operation at King of the Hills, with a significant portion of the previous underground resource now captured within an expanded pit shell.

“Based on this updated resource model, we continue to forge ahead with the final components of the bulk mining final feasibility study, including mining and engineering studies and an updated ore reserve.