Red River Resources Ltd (ASX:RVR) has completed a second drill hole at Liontown East, within the Thalanga Zinc Project located in Queensland.
Drilling intersected 30 metres of altered rocks, evidence of a significant volcanogenic massive sulphide (VHMS) system.
A three to four week down hole surveying program will begin to detect sulphide bodies potentially hosting zinc and copper.
Surveying will begin immediately in the two holes at Liontown East.
Mel Palancian, managing director, commented: “We are looking forward to the results, particularly at targets which have all the ingredients present to support the presence of a system capable of producing VHMS mineralisation.”
Down hole surveys
Red River has engaged Gap Geophysics to commence a program of down hole electromagnetic (DHEM) and down hole magnetometric resistivity (DHMMR) surveys at the Thalanga Zinc Project.
The program will start immediately with surveys being undertaken at the two holes drilled at Liontown East.
The data gathered will be processed and used to optimise the design of follow up drill holes at Liontown East. This process is expected to take 6 days to complete.
The survey program will also include recent drilling carried out by Red River at the other prospects, including Far West, Wattle Tree, Jasper Flats and Truncheon.
The survey program is expected to take 3 to 4 weeks to complete.
Analysis
The down hole survey program at Liontown East will provide Red River with data to more accurately target any potential mineralised sulphide systems.
Liontown East holds potential to improve what are already impressive economics at the Thalanga Zinc Project.
It will take only 6 months from a final investment decision to bring Thalanga into commercial production, the shortest time period to production of ASX listed zinc stocks.
Thalanga has a low operating cost, a low pre-production capital cost of $17.2 million.
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, with potential to extend the initial mine life.
The company remains fully funded to aggressively continue its Thalanga high impact exploration program.
The stock remains up over 100% year to date, trading at $0.185.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.