Red River Resources (ASX:RVR) has once again intersected massive sulphides at the company’s Thalanga Zinc Project in Queensland.
The latest assays further enhance the potential to establish additional resources at the Far West Up Dip Extension.
The Far West resource underpins the company’s restart study at Thalanga which estimates an initial ~5 year project from the West 45, Far West and Waterloo underground mines.
Thalanga has a bite-sized pre-production capex requirement of A$17.2 million.
Latest drilling highlights
- 6.6 metres at 2.9% copper, 1.0% lead, 5.8% zinc, 0.3 g/t gold and 53 g/t silver (17.7% Zn Eq.), from 291.9 metres; including
- 4.5 metres at 3.0% copper, 1.4% lead, 7.7% zinc, 0.3g/t gold and 63g/t silver (20.4% Zn Eq.)
Mel Palancian, managing director, commented:
“This is another great result from our Far West Up Dip Extension drilling program, confirming the presence of high grade mineralisation over a good width.
"This result will be part of the Far West Up Dip Extension JORC Resource estimate process to be commenced by Mining One.”
Analysis
Late in 2015, the company released a restart study which demonstrated the highly attractive nature of the project, offering a low operating cost, low pre-production capital cost of $17.2 million.
The report also highlighted a short timeline to production, or circa six months.
Annual average production is 21,400 tonnes of zinc, 3,600 tonnes of copper, 5,000 tonnes of lead, 2,000 ounces of gold and 370,000 ounces of silver in concentrate, over the initial mine life of five years.
The latest massive sulphide hits add to the potential of increased resources, and therefore a longer mine life, and improved economics.
Red River will shortly engage Mining One consultants to commence a maiden JORC Resource estimate for the Far West Up Dip Extension area.
Perth-broker Hartleys has set a 12-month price target of $0.25 a share, while also applying a valuation of $0.31 a share.
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