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RED - RED 5 LIMITED


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The disappointments continue for Australian miner Red5 at the Siana gold project in thePhilippines with disappointing performance continuing into October and damaging hopes of 18,000oz production in the December quarter.

After battling an ocean of silt and debris in the bottom of the pit, Red5's September quarter gold-silver dorÃÆâ€â„¢ÃƒÆ’ƒâ€Â ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒ¢Ã¢â‚¬Å¾Ã‚¢ÃƒÆ’ƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚© shipments to Metalor in Geneva totalled just 3,369oz gold and 5,953oz silver.

Cash operating costs were $A1,382/oz and total operating costs $1,797/oz, against an average gold price received of $US1,697/oz. With waste stripping costs amounting to $A3.91M, EBITDA from operations was $840,000 and translated to a net loss of $1.66M.

The post-quarter problems have been caused by mechanical failures in the MMD Sizer crushing unit and pit dewatering pump.

Red5 says with management changes the mine fleet efficiency has improved although it will take some time to achieve acceptable sustainable improvements.

The above was from mining net last year.

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Mick

 

 

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Yes I know that they have just enough to cover their expenses as projected. Maybe even a little to spare.

But from past experience with this company.....Things just seem to crop up that cost money and time.

 

So .... if the All In Price is too high then astute investors will probably stay away for now. Those who invested at 10 Cts are certainly future investors, for that injection of funds is a very long dated one....with some hurdles to jump.

 

Waiting for the next batch of GOOD news...to renew my interest. But Flower's All in Price makes one wonder why the investors even bothered to invest.

 

Something seems to be missing.

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Waiting for the next batch of GOOD news...to renew my interest. But Flower's All in Price makes one wonder why the investors even bothered to invest.

 

merc--that has been my point in gold producers ASX stock selection for many months now. To me it no longer matters what a chart is interpreted as saying.

 

All gold producers to make money have to cover their all in sustaining production costs by a % margin in any currency--or continual rights issues and eventual bankruptcy are inevitable.

 

I also now ignore pure gold explorers, in todays climate you want nourishment not punishment.

 

So in effect that makes ASX gold producers stock selection dead easy.

 

Spot POG right now--USD1213--AUD1387.

 

If your chosen stock reports in USD it must have an AISC of under USD1000.

If reporting in AUD it must have an AISC of under $A1200.

 

Ideally, given the turmoil in the world it should also be located on Australian soil---no Sovereign risk issues.

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  • 2 years later...

RED seems to got it's mojo back after announcing the Darlot & King of the Hills gold projects in WA's Eastern goldfields.

 

SP up 27% @ 4.7c.

Key Points

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Red 5 embarks on a new growth strategy centred on the acquisition of an asset portfolio in the Eastern

Goldfields region of WA (ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Eastern Goldfields Consolidation StrategyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ or ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“StrategyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ).

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ The cornerstone of the Strategy is a binding agreement to acquire the operating Darlot Gold Mine, located

~900km NE of Perth in the Leonora-Leinster mineral province, from a wholly owned subsidiary of Gold

Fields Limited for $18.5M (in cash and shares) in staged payments. The acquisition includes:

o An operating gold mine, with historical production that has averaged ~94kozpa since 1989;

o A fully operational 0.83Mtpa processing facility (refurbished in 2010-13) with excess capacity;

o Extensive infrastructure including a 402-room camp, airstrip and mine services ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ potential to become

a regional processing hub;

o A SAMREC 2016 Mineral Resource of 1.2Mt at 6.0g/t Au for 224,000oz of contained gold1

; and

o A total land-holding of 13,900ha with multiple exploration targets and a vast drilling database,

providing excellent vectors for follow-up exploration.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ The second key plank of the Strategy is a binding agreement to acquire the King of the Hills (ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“KOTHÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ) Gold

Project, located ~80km south of Darlot, from Saracen Mineral Holdings Limited (ASX: SAR) for $16M (in

cash and shares) in staged payments. The acquisition includes:

 

o An advanced gold project with a JORC 2012 Underground Indicated and Inferred Resource of 2.71Mt

at 4.6g/t Au for 402,000oz of contained gold2

;

o Established site infrastructure adjacent to the Goldfields Highway and mining centre of Leonora;

o Near-term underground and open pit mining potential based on trial underground mining and

advanced studies; and

o A land-holding of 11,751ha with excellent exploration potential.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ The acquisitions will give Red 5 a commanding 25,700ha footprint in the highly-endowed Leonora-Leinster

gold district, one of AustraliaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s most active gold provinces, a Mineral Resource inventory totalling

626,000oz3

, immediate production and cash-flow, and outstanding exploration and growth potential.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ In addition to the exploration opportunities at both Darlot and KOTH, the Darlot Gold Mine provides the

opportunity to establish a regional processing hub to unlock other gold deposits within the region,

including potential bolt-on acquisitions.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Once completed (scheduled for 30 September 2017), the transactions will see both Gold Fields and Saracen

join the Red 5 share register as major shareholders, representing a strong endorsement of its growth

strategy and management team.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ In order to assist in funding the cash component of the acquisitions ($14M) and for working capital

purposes, Red 5 intends to undertake a Rights Issue to all eligible shareholders (ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Rights IssueÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ) on a 1-for-3

basis at an issue price of $0.05 per share to raise up to $12.7M. The Rights Issue will be partially

underwritten by Gold Fields to $8.5M including a sub-underwriting commitment by Saracen to $1.5M. The

Red 5 Group had cash at 24 July 2017 of $16.0M.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ The transactions are subject to required shareholder and other regulatory approvals. A shareholder

meeting will be convened for the third week of September 2017 to seek all of the required shareholder

approvals.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ The new acquisitions represent a significant addition to the CompanyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s asset portfolio alongside its Siana

Gold Project in the Philippines, which retains significant inherent value. The Red 5 Group will continue to

maintain these assets in good order pending an improvement in operating conditions in the Philippines.

post-330173-1501822310_thumb.png

 

 

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  • 2 years later...

Two years later, and the mojo is a-building. The Darlot mine is operational, but not large or with a multi-year future. King of the Hills, on the other hand, is incrementally an exciting project, with 3 mill Resource and a recent 1.45mill Maiden Reserve announcement.

- Just got $20mill Working Capital facility through Macquarie

- and presenting at Diggers and Dealers

 

Most of the news has come out since May, and the Share Price has risen accordingly, from around 10c to nudging 30c today. A rising gold price does help!

 

(One of yr charts, praps, blacksheep?)

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  • 2 years later...

Ramping up production of the next major Australian gold mine

✓ Red 5 has two gold mines in one of the worlds safest and most prospective gold districts
✓ King of the Hills (KOTH) is a major Australian gold deposit ; a Top 10 largest Ore Reserves in Australia

  • Mineral Resource of 4.12Moz and Ore Reserve of 2.4Moz
  • First gold produced on 05 June 2022
  • Project delivered on schedule and within budget
  • Reconciled KOTH grades within 1% of the expected material grade of ore mined at this stage of the open pit cutback

✓ Low cost mill in highly strategic location with capacity to process satellite ore sources across the Leonora region
✓ Experienced management team with strong project development skill set ... ex Evolution, Glencore, Xstrata

 

image.thumb.png.f7b4c0af0d5e874226e49d9ab48168ca.png

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