Red River Resources
Red River Resources (ASX: RVR) is a diversified mineral explorer currently (late 2009) focusing on gold and also exploring for copper, nickel, tin, magnetite iron ore, tantalum and lithium.
Red River Resources increases Iron Mountain Mining’s stake in Miaree
Tuesday, February 07, 2012 by Bevis Yeo
Red River Resource (ASX:RVR) has handed Iron Mountain Mining (ASX:IRM) an additional 24% stake in Miaree Gold Project in Western Australia, increasing the latter’s stake in the project to 49%.
Iron Mountain had satisfied the Stage 2 farm-in requirements of spending A$1.5 million to earn the additional stake. Iron Mountain had earned its initial 25% stake by spending A$1.25 million on exploration.
However, it has also advised Red River that it does not intend to increase its stake to 70% by sole funding a further A$2 million.
Rather, Iron Mountain has opted to sole fund the current small drilling program at Miaree under non-contributory dilution provisions in the joint venture agreement to increase its interest over 50%.
Red River had late last month said it was planning to drill a reverse circulation hole into the Bergsma “A” gold prospect under the peak of a soil gold anomaly.
Detailed soil sampling at Miaree has delineated 11 separate gold prospects over 4 separate mineralised fault structures.
Preliminary rock chip sampling at the Cockatoo “A” Prospect has discovered gold grades of up to 47.4 grams per tonne (g/t) while the Walter “A” Prospect has no outcrop but has yielded up to 0.6 g/t gold in overlying soils.
The Bergsma “A” and “B” Prospects are 500m and 1,000m long respectively.
The Prospects occur over an area 5 kilometres long by 2 kilometres wide.
The Miaree project is close to the North West Coastal Highway and is also close to both the Dampier to Bunbury gas pipeline and Apache’s Devil Creek gas gathering plant.
Red River held cash of A$702,000 at the end of last year.
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