- Red 5 (RED) has taken another step in developing its King of the Hills Project by issuing a contract and bulk earthworks to ASX lister MACA Interquip (MLD)
- Work will include the 4Mpta processing facility, equipping the bore fields, high voltage power distribution, a workshop, warehouse and bulk earthworks
- Once the contract has been completed, $143 million will have been committed to the project which is less than the originally forecasted budget
- The process plant bulk earthworks are scheduled to begin on December 1
- Now, Red 5 is calling tenders for both the open pit and underground mining contracts, the independent power producer contract and for the supply of gas
- Company shares ended the day trading flat at 27.5 cents
Red 5 (RED) has issued an engineering, procurement and construction (EPC) contract to MACA Interquip (MLD) to develop its King of the Hills Project (KOTH).
This contract award marks a key step in advancing its 2.4 million ounce, 16‐year mine life project located in Western Australia.
Red selected fellow ASX lister, MACA Interquip, due to its proven track record of constructing similar carbon‐in‐leach (CIL) processing plants to the proposed four million tonnes per annum (Mpta) process plant at KOTH.
The EPC contract and bulk earthworks will be undertaken as a fixed price contract. Work will include the KOTH processing facility, equipping of the bore fields,
high voltage power distribution, workshop, warehouse and bulk earthworks.
Once the EPC contract has been completed, a total of $143 million will have been committed to the project which is less than the forecasted budget of $155 million for these commitments – which represent 82 per cent of the total capital budget of $188 million.
“Importantly, the commitments made to date are below budget for this stage of the KOTH Project, and should give our stakeholders confidence that we are well on track to progress the development of this major project, with production planned to start in June Quarter 2022,” Red5 Managing Director Mark Williams said.
Other commitments made so far include 240‐bed camp accommodation, water and wastewater treatment plants and central facilities, a design and construction contract for a 450‐person village, gyratory crusher and SAG mill, early works agreement with APA Group (APA) and the EPC contract for the process facility and bulk earthworks.
The EPC contract includes two phases. The first is limited to $50 million and phase two is for the remainder of the contract value, which hasn’t yet been disclosed.
However, the value of these contracts, along with the purchase of the 6 Mtpa gyratory crusher and 4 Mtpa SAG mill, is $129 million.
Construction of the village began last month and is expected to be operational. by February next year. The process plant bulk earthworks are scheduled to begin on December 1, 2020.
Now, Red 5 is calling tenders for both the open pit and underground mining contracts, the independent power producer contract and for the supply of gas.
Company shares have ended the day trading flat at 27.5 cents each.