ASX gold share Red 5 Limited (ASX: RED) is having a wild ride today, up 3% in early morning trade and then down 3% by late morning at the time of writing.
Below we take a look at the company's latest project update.
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What did Red 5 report?
Red 5's shares are currently lower despite the ASX gold share reportedly continuing progress at its King of the Hills Gold Project (KOTH). The 2.4-million-ounce project is located in Western Australia.
Significantly, the company said it has received approval from the Department of Environment and Water Regulation to commence construction on the KOTH power station well in advance of the scheduled start of construction.
The ASX gold share said the project remains within its forecast budget and is on track to deliver its first gold production in the June quarter of 2022. Its KOTH village is now also fully operational. The village has already been accommodating the onsite construction teams for several months.
Commenting on the progress, Red 5 Managing Director, Mark Williams, said:
We are continuing to complete the permitting, development and construction milestones at KOTH, with solid progress being made since our last update in early May 2021.
Construction activities continue to advance, gaining good momentum, with the construction of the CIL tanks for the processing circuit rapidly advancing. It's also great to see structural steel now beginning to arrive at site and key items of imported equipment, including the steel liners for the SAG Mill and the SAG Mill pinions, motors, bearings and lubrication skids arriving in Fremantle.
This is a consequence of our decision last year to lock in key fixed-price contracts and long-lead items early in the project development schedule, well ahead of the recent increase in activity in the resources and construction sectors.
How has this ASX gold share performed?
It's been a tough year for Red 5 shareholders, with shares down 39% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) gained 23% over that same time.
Year-to-date, the ASX gold share continues to struggle, down 37% so far in 2021.
