Red River Resources Limited (ASX:RVR) has obtained the ‘mining production entity’ classification from the ASX following consistently solid production numbers from the company’s Thalanga Base Metal Operation and the advancement of the Hillgrove Gold Project into production.
Over the last quarter, RVR settled a royalty dispute for Thalanga, approved the resumption of underground mining at the Syndicate deposit in the Hillgrove Project and received strong assay results from the Liontown Gap Lode and Hillgrove Sunlight and Eleanora-Garibaldi hubs.
Quarter by the numbers
Red River’s net revenue was $25.5 million for the quarter, constituting $23.7 million from Thalanga operations and $1.8 million from the Hillgrove Gold Mine.
The company has a healthy cash balance of $13.2 million, plus financial assets of $18.3 million as of December 31, 2021.
Over $22 million was spent on capital and project development, exploration activities and legal disputes during that period, US$15 million of which – expended during the Thalanga royalty dispute – will be paid back to the company’s working capital facility in multiple US$2 million quarterly payments.
Operational highlights
The Thalanga Mine continued to deliver during the quarter, producing 4,697 dry metric tonnes (DMT) of zinc concentrate, 1,100 DMT of lead concentrate and 1,996 DMT of copper concentrate.
December production improved on October and November levels, despite breaking its quarterly production records in mid-October.
Additional ground control installation requirements are currently being met at Thalanga, which RVR expects will further improve production for this next quarter.
Drilling is continuing at the nearby Liontown deposit, with seven diamond drill holes completed for 2,379 metres. Assays are pending for those samples.
Planning for underground mining to restart at the Hillgrove Gold Project is still underway.
Negotiations with several mining contractors are in the advanced stages, even as drilling continues at the project.
Eight additional diamond drill holes have been completed at the Sunlight, Eleanora-Garibaldi and Freehold hubs from which assays are also still pending.
About Red River Resources
Red River Resources is seeking to build a multi-asset operating business focused on base and precious metals with the objective of delivering prosperity through resource development.
The company’s foundation asset is the Thalanga Base Metal Operation in Queensland, which was acquired in 2014 and started producing copper, lead and zinc concentrate started in September 2017.
Red River has also started production at the high-grade Hillgrove Gold Operation in New South Wales, which was acquired in 2019 and is also a key part of its strategy to build a multi-asset operating business focused on base and precious metals.