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Red River Resources continues to drill out zinc zones

Published: 09:00 13 Jan 2017 AEDT

red-river-resources_Sphalerite-mineralisation-from-TH684-757
Red River has received further high-grade zinc assays.

Red River Resources (ASX:RVR) has received further high-grade assay results from its ongoing drilling program at Thalanga Far West, part of the Thalanga Zinc Project located 60 kilometres from Charters Towers in north Queensland.

Assays have been received for holes TH695, TH696 and TH697 which intersected zones of up to 6.4 metres at 9.4% zinc equivalent.

Significantly, hole TH698, which is awaiting assay, has intersected two zones of massive sulphide mineralisation totalling 33.1 metres.

Mel Palancian, managing director, commented: “To date, this is largest intercept of massive sulphide mineralisation intersected by Red River at Far West.

“The exceptional thickness of massive sulphide mineralisation intersected appears to be linked to the presence of a feeder zone in the footwall to the mineralisation. This augurs well for further drilling in this area of Far West.”


Drill results details

Red River has received assay results for TH695, TH696, and TH697 from the ongoing Far West infill and resource extension drilling program.

- TH695 intersected 6.4 metres at 9.4% zinc equivalent (0.8% copper, 1.2% lead, 4.3% zinc, 0.9 g/t gold and 38 g/t silver) from 245.2 metres; and
- TH697 intersected 2.0 metres at 20.3% zinc equivalent (1.9% copper, 2.5% lead, 9.6% zinc, 0.5 g/t gold and 77 g/t silver) from 159.8 metres and 2.0 metres at 10.6% zinc equivalent (1.5% copper, 1.2% lead, 2.9% zinc, 0.3 g/t gold and 58 g/t silver) from 173.0 metres.

Drilling continues at Far West with TH705 and TH706 in progress.

No significant mineralisation was intercepted in TH696.


Massive sulphide zone intersected

TH698 has intersected two zones of massive sulphide mineralisation, 14.8 metres and 18.3 metres for a total thickness of 33.1 metres of massive sulphide mineralisation.

Assay results are pending.

There is evidence of a feeder zone, suggesting TH698 intersected the ore horizon at a position where it was being fed and this may explain the particularly thick massive sulphide mineralisation intersected in TH698.


Analysis

The latest assays from the Far West drill program continue to demonstrate the high grade nature of mineralisation in and around the Far West deposit and its growth potential.

Thalanga Far West will be the second deposit mined after West 45, with production at Thalanga expected to commence in the second half of 2017.

Mine development is significantly advanced at West 45.

With assays from further holes pending, including the 33.1 metre zone of massive sulphides, and drilling still in progress, Red River remains leveraged to news flow.

Red River is fully funded to aggressively continue its infill drilling and Thalanga high impact exploration program, while it continues to develop the project in order to restart mining.

Shares have risen over 175% over the past 12 months, currently trading at $0.225.

Upcoming milestones at Thalanga include:

- Finalise management team: Q1 2017;
- Concentrate offtake agreement: Q1 2017;
- Appointment of mining contractor: Q1 2017;
- Mobilisation of plant refurbishment contractors: Q1 2017;
- Plant refurbishment completed: Q3 2017; and
- Commencement of production: 2H 2017.

Zinc was one of the top performing commodities in 2016 gaining 60% as the markets supply/demand balance has tightened dramatically.

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