A A$650 million contract is at the heart of a letter of intent just signed between miner Red 5 and contractor Macmahon for mining services at the King of the Hills (KOTH) gold project in Western Australia.
Final contract documentation for the five-year deal should be ready to complete by June; it involves underground and surface mining services.
Red 5 has already started camp construction as well as the on-site processing facilities ahead of the KOTH’s target start date in early 2022. First gold is expected from the mine in June 2022.
KOTH, in the eastern goldfields region near the township of Leonora, has a mine life estimation of 16 years.
According to Red 5, the mine has an ore reserve of 2.4 million ounces and a mineral resource of 4.1 million ounces. It’s production rate has been set at 4 Mtpy at prime production.
Source: Red 5 Ltd