Red River Resources Ltd (ASX:RVR) has now wrapped up the Far West Up Dip Extension drilling program at the company’s Thalanga Zinc Project in Queensland, and it has been a success.
Red River delivered a 100% strike rate, with 7 of 7 holes intersecting high grade massive sulphide and semi-massive sulphide mineralisation.
Mel Palancian, managing director, commented:
“TH676 marks the completion of the Far West Up Dip Extension drilling program, and we are 7 out of 7, with all holes intersecting high grade massive sulphide mineralisation.
"This is an outstanding result, demonstrating the potential for further resource extensions within the Thalanga Project and we look forward to the Mineral Resource estimate for this area.”
Highlights from the final hole include: 9.5 metres at 2.3% copper, 1.6% lead, 4.7% zinc, 0.3g/t gold and 61g/t silver. (15.2% Zn Eq).
Resource estimate in Q2 2016
Mining One consultants have commenced a Mineral Resource estimate for the Far West Up Dip Extension, expected to be completed in Q2 2016.
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 continued massive sulphide hits add to the potential of increased resources, and therefore a longer mine life, and improved economics.
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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