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Red 5 Limited delivers maiden gold production ahead of consolidation strategy

Red 5 Limited delivers maiden gold production ahead of consolidation strategy

March 13, 2018


Red 5 Limited (ASX:RED) has transitioned from exploration to gold production as evidenced in its result for the six months to 31 December 2017.During this period the company achieved a strong maiden production performance from the Darlot operations in the Eastern Goldfields of Western Australia.Gold sales were 16,150 ounces at an all in sustaining cost of A$1,291 per ounce.Cash and bullion of $21.8 millionRed 5 had cash and gold bullion of $21.8 million at the end the half year.The robust cash position at the end of December 2017 was driven by a strong quarterly performance from the newly acquired Darlot mining operations.


While plant issues will stifle March quarter production, management is expecting that it will be in a range between 12,000 ounces and 15,000 ounces.Commencement of underground miningUnderground development and mining at the King of the Hills project and resource definition activities at the Darlot mine will commence during the March quarter.This will potentially increase costs for the next two quarters.Consolidation of King of the Hills operationsMark Williams, managing director, said: “We are encouraged by the performance of the Darlot operation and confident in our Eastern Goldfields Consolidation Strategy.”“This should maximise throughput at the Darlot mill by processing ore from both the Darlot and King of the Hills (KOTH) underground mining operations."


Source: http://www.proactiveinvestors.com.au/