Red 5 Limited has announced that the King of the Hills (KOTH) gold mine saw record production for March, producing 17,550 ounces of gold.
According to the company, the mine produced 17,550 ounces from 0.4 Mt of ore processed at an average head grade of 1.49 g/t.
Total production for the first quarter was 40,867 ounces, based on 1.04 Mt of ore processed at an average head grade of 1.32 g/t and gold recovery of 92 per cent.
The company also announced the completion of the Tailings Storage Facility 5, saying discharge will commence later in April.
Red 5 said mining within the open pit is now from the primary ore body, located on and around the granodiorite/ultramafic contact.
It added that with the 5225 mRL bench level mostly completed, mining of the 5215 mRL bench would commence in early April.
In its financial and corporate update, the company said cash and bullion were at $23.4 million as of 31 March and that it has already made a scheduled loan repayment of $14.8 million in March, with $149.8 million remaining outstanding on the loan facility.
In February, the company announced a fully underwritten $90 million equity raising to better support steady-state operations at KOTH and provide a robust growth platform, consisting of a two-tranche $80 million share placement and a $10 million Share Purchase Plan (SPP).
Proceeds from Tranche 2 and the SPP, totalling $32 million, are expected to be received in mid-April, subject to shareholder approval at the company’s general meeting on 12 April.
