Red 5 has announced a 55,009-ounce gold production for the September 2023 quarter from its King of the Hills (KOTH) project in the eastern Goldfields region of WA.
The results put the company in a strong position to meet its 2024 financial year production guidance of 195,000 – 215,000 ounces.
The 55,009 ounces were collected from 1.23 million tonnes of ore processed at an average head grade of 1.49 grams per tonne and a gold recovery of 93.2 per cent.
Red 5 gold sales totalled 54,383 ounces for the quarter at an average realised price of $2,609 an ounce.
The company said all three mines part of the King of the Hills project (KOTH open pit, KOTH underground and Darlot underground) performed well, delivering the expected tonnes and grade.
The KOTH process plant continues to operate at an annualised throughput rate of 5.5 million tonnes per year, but a crusher affected by unplanned shutdowns reduced overall planned mill throughput for the quarter.
Gold production for the quarter has also made progress in accelerating Red 5’s debt reduction plans.
Total outstanding debt reduced to $112.8 million, down from $127.8 million in the June quarter, following the repayment of $15.0 million, including $10.8 million of accelerated debt repayments.
The company’s net debt position reduced by $13.7 million for the quarter to $68.2 million, down from $81.9 million in June.
The announcement follows Silver Lake Resources recent acquisition of an 11 per cent strategic stake in Red 5, totalling around 383 million shares.
Red 5 has also experienced a significant leadership shakeup earlier in September with the appointment of new chief financial officer David Coyne, as well as a number of departures to its board as part of its renewal process.