Proactiveinvestors Australia Red River Resources Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Red River Resources Ltd RSS feed en Mon, 22 Apr 2019 20:20:34 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Red River Resources hits record production of zinc, lead and copper at Thalanga ]]> https://www.proactiveinvestors.com.au/companies/news/218093/red-river-resources-hits-record-production-of-zinc-lead-and-copper-at-thalanga-218093.html Red River Resources Limited (ASX:RVR) achieved record levels of zinc, lead and copper concentrate production during the March quarter at its Thalanga operations in North Queensland.

Zinc concentrate production of 8,952 tonnes was 16% higher than the previous quarter, lead concentrate production was 25% higher at 3,763 tonnes and copper concentrate production was up 134% to 1,694 tonnes.

The company's shares have traded up to 12% higher in early trade to 19 cents.

Record quarterly tonnage

These records were set after record quarterly tonnage of 109,000 tonnes was processed through the Thalanga mill.

Quarterly mine production was achieved at Far West with 97,000 tonnes of ore processed.

Production also began at the new Far West underground mine during the quarter with 9,000 tonnes of development ore mined.

READ: Red River Resources produces high-quality concentrate from Far West ore

Thalanga operations summary for quarter-three of financial year 2019.

The company has selected to report on a zinc equivalent basis as zinc is the metal that contributes most to the net smelter return zinc equivalent calculation.

Metallurgical recoveries and metal prices.

Payable metal factors. 

Red River aims to extend mine life through increasing mineral resources and ore reserves at deposits in the mine plan including West 45, Far West and Waterloo and by converting mineral resources into ore reserves at Liontown and Orient.

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Mon, 08 Apr 2019 10:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218093/red-river-resources-hits-record-production-of-zinc-lead-and-copper-at-thalanga-218093.html
<![CDATA[News - Red River Resources produces high quality concentrates from Far West ore ]]> https://www.proactiveinvestors.com.au/companies/news/217284/red-river-resources-produces-high-quality-concentrates-from-far-west-ore-217284.html Red River Resources Ltd (ASX:RVR) has processed the initial 7,500-tonne parcel of Far West development ore through its Thalanga mill in Queensland with outstanding metallurgical recoveries.

Truck leaving Far West Decline

The ore was processed between February 11, 2019 and March 5, 2019 to produce clean, high quality concentrates:

• Copper recovery of 84.4% to a concentrate grading 26.0% copper;
• Lead recovery of 79.9% to a concentrate grading 70.1% lead; and
• Zinc recovery of 89.2% to a concentrate grading 59.3% zinc.

Importantly, the recoveries and concentrate grades are in line with, or in most cases significantly greater than, the estimates used in the Thalanga Zinc Project Re-Start Study.

 

The pre-production development of Far West is being completed on track and within budget.

The mine development in ore drives and the decline will continue as a normal course of operational activities.

Ventilation fans have been installed enabling commencement of second drill jumbo in April to increase underground development rates.

Drill Jumbo at Far West Decline Face

The decline is currently at 133 metres vertical depth. It has passed the 880 Level access and continues downwards to the 860 Level access.

Further development ore will be processed through the plant and the site team is looking forward to the commencement of stoping in Q3 CY2019.

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Wed, 27 Mar 2019 13:39:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217284/red-river-resources-produces-high-quality-concentrates-from-far-west-ore-217284.html
<![CDATA[News - Red River Resources executive director shows confidence in the company’s Thalanga Zinc Project strategy ]]> https://www.proactiveinvestors.com.au/companies/news/216524/red-river-resources-executive-director-shows-confidence-in-the-companys-thalanga-zinc-project-strategy-216524.html Red River Resources Limited (ASX:RVR) executive director Donald Garner has demonstrated his confidence in the company’s strategy by purchasing shares on-market.

Garner has bought 22,5000 shares today increasing his holding in the company to 7,631,601 ordinary shares.

READ: Red River Resources on track to commence production from Far West deposit 

The company is on track to begin production at its Far West deposit within the wider Thalanga project in Queensland in quarter-three 2019.

To date more than 3,500 tonnes of high-grade ore from Far West has been delivered to the Thalanga operations run-of-mine (ROM) pad.

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Fri, 15 Mar 2019 16:10:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216524/red-river-resources-executive-director-shows-confidence-in-the-companys-thalanga-zinc-project-strategy-216524.html
<![CDATA[Media files - Red River Resources developing multiple assets to maximise Thalanga Operations ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12274/red-river-resources-developing-multiple-assets-to-maximise-thalanga-operations-12274.html Tue, 19 Feb 2019 15:30:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12274/red-river-resources-developing-multiple-assets-to-maximise-thalanga-operations-12274.html <![CDATA[News - Red River Resources on track to commence production from Far West deposit ]]> https://www.proactiveinvestors.com.au/companies/news/214323/red-river-resources-on-track-to-commence-production-from-far-west-deposit-214323.html Red River Resources Ltd (ASX:RVR) is on track to commence production from the Far West deposit in Q3 CY2019 as development continues to progress on schedule.

The Far West deposit is Red River’s second underground mine at the Thalanga Operations in Queensland.

To date, more than 3,500 tonnes of high-grade development ore from Far West has been delivered to the Thalanga Operations ROM Pad.

Far West development ore on Thalanga Operations ROM Pad

The company plans to treat this ore as a single parcel through the mill to enable the metallurgical performance of the ore to be optimised.

Red River managing director Mel Palancian said the company was excited to be gearing up for production to commence at Thalanga’s second deposit, having achieved record production from the existing deposit, West 45 in the December 2018 quarter.

Red River’s contractor PYBAR mined 96,000 tonnes of ore from West 45 during the period.

READ: Red River Resources breaks quarterly operating records at Thalanga

As per standard operating procedure at Thalanga, Red River assayed face samples from Far West through the onsite assay laboratory which Intertek operates on behalf of the company.

Red River continues to explore prospects across its Mt Windsor Belt landholding as it aims to make further discoveries with the potential to boost production at Thalanga.

READ: Red River Resources Ltd targets mill processing increases with systematic approach

The pace of capital development at Far West is accelerating, with target first production (stope) ore scheduled for Q3 CY2019.

Achievements to date include:

• Far West total development has surpassed 1,100 metres including 750 metres of decline development and 75 metres of ore drive development on the 920 Level.

• Decline is currently at 118 metres vertical depth and has passed the 900 Level access and continues downwards to the 880 Level access.

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Mon, 11 Feb 2019 15:33:00 +1100 https://www.proactiveinvestors.com.au/companies/news/214323/red-river-resources-on-track-to-commence-production-from-far-west-deposit-214323.html
<![CDATA[News - Red River’s Thalanga operations continue despite adverse Queensland weather ]]> https://www.proactiveinvestors.com.au/companies/news/213861/red-rivers-thalanga-operations-continue-despite-adverse-queensland-weather-213861.html Red River Resources Ltd’s (ASX:RVR) Thalanga underground mine and process plant are operating in spite of adverse weather conditions in North Queensland.

The Flinders Highway is temporarily closed at several locations between Charters Towers and Townsville due to flooding, however, this is not expected to have any material impact on Thalanga at this stage.

Red River said that its site team has done an excellent job to keep the operations going.

READ: Red River Resources breaks quarterly operating records at Thalanga

The company recently reported record operating performances at the Thalanga Operations during the December 2018 quarter.

There was record production of zinc, lead and copper concentrates in the three months along with record production of 96,000 tonnes of ore mined at the West 45 underground mine.

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Mon, 04 Feb 2019 15:23:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213861/red-rivers-thalanga-operations-continue-despite-adverse-queensland-weather-213861.html
<![CDATA[News - Red River Resources intersects high-grade polymetallic massive sulphide at Ermine Project ]]> https://www.proactiveinvestors.com.au/companies/news/213460/red-river-resources-intersects-high-grade-polymetallic-massive-sulphide-at-ermine-project-213460.html Red River Resources Ltd (ASX:RVR) has revealed initial positive assay results from an exploration drilling program at the Ermine Project, part of its Thalanga Operations in Queensland.

The company completed an initial two holes before demobilising the drilling rig for the wet season.

Ermine Project location

The program aimed to test several geophysical and geochemical anomalies in the larger Ermine-Echidna mineralised system.

Highlights from the drilling included 1.95 metres at 15.5% zinc equivalent (1.1% copper, 2.2% lead, 9.1% zinc, 0.1 g/t gold & 33 g/t silver) from 223 metres down hole at the Ermine North target.

The Ermine-Echidna system is about 75 kilometres east of Red River’s Thalanga Operations.

READ: Red River Resources breaks quarterly operating records at Thalanga

Further discoveries near Thalanga have the potential to provide Red River with additional material that could be processed at the Thalanga plant, which has the capacity for increased throughput.

Red River managing director Mel Palancian said: “We continue to be pleasantly surprised with the success of our exploration activities which demonstrate prospectivity of our extensive exploration portfolio.

“The Ermine prospect is one of several we will assess to more clearly define a long and sustainable mine life at Thalanga.”

Significant historical results

Previous exploration at Ermine-Echidna had defined a large (+2 kilometres length) coincident geochemical and geophysical anomaly.

The historical drilling (carried out by Plutonic Operations Ltd in 1992 and 1993) produced a number of significant high-grade intercepts including 3.2 metres at 1.2% copper, 7.9% lead, 29.2% zinc, 0.4 g/t gold and 190 g/t silver.

READ: Red River Resources Ltd targets mill processing increases with systematic approach

Red River plans to drill down dip, testing the core of the Ermine North conductivity anomaly and along strike with a view to better define the extent of the mineralisation at Ermine North.

The Ermine conductivity anomaly is also planned to be tested by drilling.  Analysis indicates that the previous historic drilling carried out by Plutonic, was not deep enough the test the anomaly.

Evaluation of the historic core is also underway to help vector to a thicker section of the sediment package. Jasper fertility and gossan sampling and mapping will also continue.

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Tue, 29 Jan 2019 12:20:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213460/red-river-resources-intersects-high-grade-polymetallic-massive-sulphide-at-ermine-project-213460.html
<![CDATA[News - Red River Resources Ltd targets mill processing increases with systematic approach ]]> https://www.proactiveinvestors.com.au/companies/news/212918/red-river-resources-ltd-targets-mill-processing-increases-with-systematic-approach-212918.html Red River Resources Ltd (ASX:RVR) (FRA:R1R) is systematically working towards its ambition to further increase the ore processed at its Thalanga mill in Queensland so it can reach full annual capacity of 650,000 tonnes.

The Perth-based company has its sights set on continued improvements at its Thalanga Operations this quarter after record production in the December quarter.

The base metals producer increased its production take at the Thalanga Operations during the September and December quarters of 2018, the company revealed a week ago.

Revenue in the September 2018 quarter from concentrate sales had been $16.3 million.

Red River’s total tonnes mined for Thalanga came solely from the West 45 deposit.

West 45 had a JORC-compliant ore reserve of 567,000 tonnes grading 11.6% zinc equivalent and a mineral resource estimate of 582,000 tonnes grading 15.45% zinc equivalent using a cut-off grade of 5% zinc equivalent, on December 20, 2017.

The north Queensland project is 65 kilometres southwest of Charters Towers.

READ: Red River Resources breaks quarterly operating records at Thalanga

Red River underwent a step change increase in production in the June 2018 quarter at Thalanga, increasing production by 19 tonnes, or 29.2%, to 84 tonnes a quarter during the period.

Ore processed was 95,000 tonnes for the December 2018 quarter and 187 tonnes for the December 2018 half-year to 187,000 tonnes — an annualised 374,000 tonnes which does not take into account expected future increases to production at the site.

Red River has previously said it hoped to take advantage of “high cyclical zinc prices and historically low zinc concentrate treatment charges”.

It expects additional tonnages to attract incremental processing cost increases.

During the quarter 7,695 tonnes of zinc concentrate were produced, along with 3,007 tonnes of lead concentrate and 725 tonnes of copper concentrate.

Copper recoveries continued to improve with 54.1% recovery to copper concentrate achieved for the three-month period.

An indication of this improvement was also evident in December’s 73.2% recovery to copper concentrate.

December quarter production statistics for Red River’s Thalanga Operations

Thalanga consists of 7 million tonnes grading 2.5% copper, 3.7% lead, 11.7% zinc, 0.6 g/t gold and 98 g/t silver.

The project area is one of five held by the company over 610 square kilometres on the prospective Mt Windsor Belt, with the others being Liontown Waterloo, Highway Reward, Ermine and Trooper Creek.

Exploration at the five projects is authorised by 13 minerals exploration permits.

Another deposit in Red River’s landholding was previously discovered and mined like Thalanga — Highway Reward, a 3.8 million tonne deposit grading 6.2% copper and 1 g/t gold.

Red River’s achievements in the September 2018 quarter included a maiden JORC mineral resource estimate of 1.5 million tonnes grading 12.2% zinc equivalent for the Liontown East deposit and an increase in the Liontown project mineral resource to 3.6 million tonnes grading 10% zinc equivalent.

The company is also hoping to define mineable tonnes at Orient and incorporate these with Liontown Waterloo’s resources into its mine plan.

Red River’s corporate strategy is to ‘find more ore’ so it can reach the full capacity of its 650,000 tonnes a year plant at Thalanga.

The approach involves extending the life of known deposits, optimising cut-off grades, finding next-generation deposits at Thalanga and acquiring new projects or reaching strategic agreements with other project owners.

Red River’s focused exploration efforts are to use cutting edge technology and the latest exploration methodologies.

The company expect new project acquisitions and strategic agreements will help it process more ore through its plant.

READ: Red River Resources Limited has more strong base and precious metals results underground at Thalanga

Production of copper, lead and zinc concentrate started at the Thalanga mining operation in September 2017.

The company views the production restart at Thalanga as evidence of its strategic approach.

Red River wrote at its website: “Restart of production at Thalanga has demonstrated Red River’s focus and commitment to ‘deliver prosperity through lean and clever resource development’.

“We look forward to the continuing to deliver through finding more ore at Thalanga and growing Red River to become a multiple asset, mid-tier mining company.”

READ: Red River Resources lowers costs, increases earnings in September quarter

Red River managing director Mel Palancian said last week: “We are looking forward to continued improvements in the March quarter.”

The company plans to start production at its Far West deposit at Thalanga in the March 2019 quarter.

Red River’s March 2019 quarterly figures will be the first to include ore mined from outside the West 45 deposit as the company targets a 276,000 tonnes a year, or 74%, increase in ore processed at its plant.

Far West deposit has an estimated mine life of six years and a reserve of 1.5 million tonnes at 12% zinc equivalent.

READ: Red River Resources development at Far West on track to increase Thalanga production

The company advanced the decline of the Far West deposit in preparation last quarter, with further drilling early this year to target extensions to high-grade mineralisation.

Managing director Palancian highlighted continued improvements to mine production and processing plant efficiency in what will prove a prequel to the company’s quarterly activities report.

He wrote on behalf of the board: “RVR is focused on maximising returns from the operation by increasing plant throughput and extending mine life through increasing mineral resources and ore reserves at deposits currently in the mine plan (West 45, Far West and Liontown Waterloo).

Palancian reported the company also planned to convert “mineral resources into ore reserves at Liontown and Orient and … aggressively (explore) our growing pipeline of high-quality targets and projects.”

Red River’s full quarterly report is due by the end of January 2019.

READ: Red River Resources intersects high-grade gold and base metals between Liontown deposits

Red River breaks down its quarterly and half-year production figures into the gradings for copper, lead, zinc, gold silver and zinc equivalent.

Besides ore mined, the company tracks ore processed, zinc concentrate produced, lead concentrate produced and copper concentrate produced.

Financial results

In the September 2018 quarter, the company had concentrate sales revenue of $16.3 million, achieved with a 25% lower C1 cash cost of US 70 cents a pound of payable zinc metals.

The earnings before interest, tax, depreciation and amortisation (EBITDA) of the Thalanga Operations underwent a turnaround, increasing by $1.7 million to $1.3 million dollars.

Red River ended the September quarter with $17.4 million cash and a further $8.8 million in cash-backed security bonds.

The company’s US$10 million working capital facility had not been drawn down.

— with John Miller

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Sun, 20 Jan 2019 20:55:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212918/red-river-resources-ltd-targets-mill-processing-increases-with-systematic-approach-212918.html
<![CDATA[News - Red River Resources breaks quarterly operating records at Thalanga ]]> https://www.proactiveinvestors.com.au/companies/news/212449/red-river-resources-breaks-quarterly-operating-records-at-thalanga-212449.html Red River Resources Limited (ASX:RVR) achieved record operating performances from the Thalanga Operations in northern Queensland during the December quarter.

There was record production of zinc, lead and copper concentrates in the three months along with record production of 96,000 tonnes of ore mined at the West 45 underground mine.

“Looking to continued improvements”

Red River’s managing director Mel Palancian said: “It’s great to see the site team continue to improve production from both the mine and the processing plant.

“We are looking forward to continued improvements in the March quarter.”

December quarter production statistics and comparisons.

READ: Red River Resources director lifts holding in zinc producer through on-market purchase

During the quarter there were 7,695 tonnes of zinc concentrate produced, 3,007 tonnes of lead concentrate and 725 tonnes of copper concentrate.

Copper recoveries continued to improve with 54.1% recovery to copper concentrate achieved for the three months.

A further indication of this improvement was seen in the month of December with 73.2% recovery to copper concentrate.

READ: Red River Resources Limited has more strong base and precious metals results underground at Thalanga

Red River will release its full December quarterly report by the end of this month.

Thalanga is Red River’s flagship asset and copper, lead and zinc concentrate production began in September 2017.

The company is focused on maximising returns from the operation by increasing plant throughput and extending mine life through increasing resources and reserves at deposits in the current mine plan.

These deposits are West 45, Far West and Waterloo.

READ: Red River’s development at Far West on track to increase Thalanga production

Red River is set to begin underground production at the Far West deposit his quarter and this will augment production from West 45.

Far West, which has a reserve of 1.5 million tonnes at 12% zinc equivalent, will extend production at Thalanga for at least the next five years.

The company is also planning to convert mineral resources into ore reserves at Liontown and Orient and is aggressively exploring a growing pipeline of high-quality targets and projects.

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Mon, 14 Jan 2019 12:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212449/red-river-resources-breaks-quarterly-operating-records-at-thalanga-212449.html
<![CDATA[News - Red River Resources director lifts holding in zinc producer through on-market purchase ]]> https://www.proactiveinvestors.com.au/companies/news/211534/red-river-resources-director-lifts-holding-in-zinc-producer-through-on-market-purchase-211534.html Red River Resources Limited (ASX:RVR) director Donald Garner has demonstrated his confidence in the company’s zinc-focused Queensland operations by acquiring shares on-market.

The executive director increased his holding in the company through an on-market purchase on December 19 of more than 14,000 shares.

This purchase means he now holds more than 7.609 million ordinary shares in the zinc-focused base and precious metals producer.

READ: Red River’s development at Far West on track to increase Thalanga production

Red River is producing zinc along with lead, copper, gold and silver from the Thalanga Operations in northern Queensland.

The company is advancing a decline to access underground ore at the Far West deposit which will augment production from the West 45 mine.

Ore production from Far West is on schedule to begin during the first quarter of 2019 and is expected to extend production at the Thalanga Operations for at least the next five years.

READ: Red River Resources Limited has more strong base and precious metals results underground at Thalanga

The company is also planning to undertake further drilling in early 2019 to target extensions of the high-grade mineralisation.

READ: Red River Resources has record September quarter at zinc mine

Red River mined, processed and produced record amounts from the operation during the September quarter.

There were 6,800 tonnes of zinc concentrate produced, an increase of 24% on the previous quarter and 2,747 tonnes of lead concentrate, a 33% increase on the June quarter.

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Thu, 20 Dec 2018 14:48:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211534/red-river-resources-director-lifts-holding-in-zinc-producer-through-on-market-purchase-211534.html
<![CDATA[News - Red River’s development at Far West on track to increase Thalanga production ]]> https://www.proactiveinvestors.com.au/companies/news/210919/red-rivers-development-at-far-west-on-track-to-increase-thalanga--production-210919.html Red River Resources Ltd (ASX:RVR) has advanced the decline at the Far West deposit to 90 metres vertical depth at the Thalanga Operations in northern Queensland.

Ore production at Far West is scheduled to commence in Q1 2019 and will augment West 45 ore, increasing the total production at Thalanga.

Red River managing director Mel Palancian said: “The Far West deposit will extend production at Thalanga Operations for at least the next five years.

“Production from Far West is on track to start in Q1 2019 and we are planning further drilling to target extensions of the high-grade mineralisation in early 2019”

READ: Red River Resources Limited has more strong base and precious metals results underground at Thalanga

To date, over 660 metres of lateral development has been completed at Far West, including 552 metres of total decline development.

The decline is currently at 90 metres vertical depth and at the 920 ore drive cross-cut access.

Far west development progress

The raise-borer has been mobilised to site to commence the Far West return air rise and second means of egress with completion and ventilation fan installation expected in the March quarter 2019.

Far West return air rise site preparation

Red River’s recent drilling has indicated the potential to extend upper levels of Far West. Highlight results include:

• 13.45 metres at 13.7% zinc equivalent from 193.4 metres including 4.20 metres at 31.1% zinc equivalent from 193.40 metres;
• 3.30 metres at 10.5% zinc equivalent from 42 metres; and
• 4.95 metres at 19.2% zinc equivalent from 49.35 metres.

READ: Red River Resources lowers costs, increases earnings in September quarter

The recent drilling results indicate the potential to extend planned ore drives and possibly add additional levels above.

These results also confirm that the orebody is not closed off and further drilling is planned to start after the wet season in early 2019 to target further extensions of the high-grade hits.

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Tue, 11 Dec 2018 14:01:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210919/red-rivers-development-at-far-west-on-track-to-increase-thalanga--production-210919.html
<![CDATA[News - Red River Resources Limited has more strong base and precious metals results underground at Thalanga ]]> https://www.proactiveinvestors.com.au/companies/news/209420/red-river-resources-limited-has-more-strong-base-and-precious-metals-results-underground-at-thalanga-209420.html Red River Resources Limited (ASX:RVR) has received strong results from drilling at the West 45 underground mine within its Thalanga Operations in northern Queensland.

These results, which have confirmed the potential for the addition of an upper level in the mine near Charters Towers, will be outlined by the company at tomorrow’s Proactive CEO Session in Melbourne.

CFO to outline strategy at CEO Session

Chief financial officer Rod Lovelady will present Red River’s base metals strategy, supported by gold and silver, to investors at the lunchtime session.

Potential for an additional level

Surface geotechnical drilling has defined the potential for an additional level above the existing level.

Program objectives were to confirm the resource above the existing development in West 45 and to provide geotechnical data for potential development of a 996 Level, above the existing 976 Level.

READ: Red River Resources lowers costs, increases earnings in September quarter

Ten holes have been drilled for a total of 343.2 metres and Red River has received positive assay results from all holes, including these highlights:

- 5.44 metres at 0.5% copper, 3.1% lead, 6.1% zinc, 0.2 g/t gold and 87 g/t silver, or 13.0% zinc equivalent, from 27.55m downhole; and

- 6.17 metres at 0.6% copper, 4.7% lead, 8.0% zinc, 0.3 g/t gold and 50 g/t silver, or 15.5% zinc equivalent, from 22.09 metres downhole.

Gold and silver as well

Exceptional gold and silver mineralisation intercepts continue at West 45 with notable results being:

- 8.25 metres at 5.1 g/t gold and 512 g/t silver from 111.75 metres downhole, including 0.32 metres at 120.8 g/t gold and 11,256 g/t silver (1.1% silver) from 113.90 metres downhole; and

- 09.21 metres at 0.6 g/t gold and 407 g/t silver from 18.84 metres downhole, including 0.51 metres at 5.2 g/t gold and 3,935 g/t silver from 21.25 metres downhole.

Shares are up almost 6% to 18.5 cents.

READ: Red River Resources has record September quarter at zinc mine

The company is carrying out additional mapping and resampling of core to seek to identify whether the high-grade gold-silver mineralisation can be defined as a continuous, potentially mineable body.

Red River has also completed an underground resource definition and extension drilling program at West 45 with 16 holes drilled for 1,807.15 metres.

The objectives are to increase confidence in Lens 6 mineralisation prior to a decision to mine; to target down dip extensions of Lens 4, and; to understand the structural framework controlling West 45 mineralisation.

Tonnages confirmed

Tonnages have been confirmed in Lens 4 and Lens 6 while positive assay results have been received from 13 holes and results are pending from a further hole.

Red River began copper, lead and zinc concentrate production at Thalanga in September 2017 and is focused on maximising returns.

It believes this will occur by increasing plant throughput and extending mine life through increasing resources and reserves at the West 45, Far West and Waterloo deposits.

READ: Red River Resources intersects high-grade gold and base metals between Liontown deposits

The company also aims to potentially convert resources into reserves at Liontown and Orient and by aggressively exploring a growing pipeline of high-quality targets within the surrounding area.

Register for the CEO Session today to find out more.

Melbourne details, Tuesday, November 20, 2018

Also featuring at the Melbourne session will be Great Boulder Resources (ASX:GBR), High Peak Royalties Ltd (ASX:HPR), Blackstone Minerals (ASX:BSX) and Yandal Resources Ltd.

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Mon, 19 Nov 2018 15:11:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209420/red-river-resources-limited-has-more-strong-base-and-precious-metals-results-underground-at-thalanga-209420.html
<![CDATA[News - Red River Resources lowers costs, increases earnings in September quarter ]]> https://www.proactiveinvestors.com.au/companies/news/207709/red-river-resources-lowers-costs-increases-earnings-in-september-quarter-207709.html Red River Resources Ltd (ASX:RVR) achieved $16.3 million in revenue from concentrate sales for the September quarter from its Thalanga Zinc Operations located in central Queensland.

C1 cash costs were 25% lower than the prior June quarter at US$0.70 per pound of payable zinc metal and EBITDA increased $1.7 million to $1.3 million.

At the end of the quarter, Red River had a cash balance of $17.4 million plus financial assets of $8.8 million with its US$10 million working capital facility undrawn.

READ: Red River Resources has record September quarter at zinc mine

Red River achieved record production from the West 45 deposit and record mill throughput at its Thalanga Zinc Operations located in central Queensland.

Stoping continued at the West 45 underground mine, with quarterly production of 90,000 tonnes grading 8.8% zinc equivalent.

The process plant’s record quarterly throughput reached 98,000 tonnes at 8.2% zinc equivalent.

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Wed, 24 Oct 2018 09:05:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207709/red-river-resources-lowers-costs-increases-earnings-in-september-quarter-207709.html
<![CDATA[News - Red River Resources has record September quarter at zinc mine ]]> https://www.proactiveinvestors.com.au/companies/news/206942/red-river-resources-has-record-september-quarter-at-zinc-mine-206942.html Red River Resources Ltd (ASX:RVR) has mined, processed and produced record amounts from its Thalanga zinc operation over the September quarter in Queensland.

The company produced 6,800 tonnes of zinc concentrate, an increase of 24% on the prior June quarter and 2,747 tonnes of lead concentrate, a 33% increase on the June quarter.

Red River’s managing director Mel Palancian said: “Great to see the site team continue to improve production from both the mine and the processing plant and, we are looking forward to continued increases in concentrate production in the December quarter.”

READ: Red River Resources intersects high-grade gold and base metals between Liontown deposits

The Thalanga operations consist of six deposits, however, only the West 45, Far West and Waterloo deposits are part of the current mine plan.

Two of the deposits not in the mine plan are Liontown and Liontown East and recent drilling suggests the two deposits may be linked.

Drilling recently intersected high-grade gold, copper and zinc in the area between the two existing Liontown deposits, known as the Liontown Gap.

The total mineral resources across the two deposits amount to 3.6 million tonnes at 10% zinc equivalent.

READ: Red River Resources valued at more than double the current price by Hartleys

Shares in the company are trading at 19.5 cents, representing a steep discount to Hartleys’ 12-month price target of 61 cents.

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Fri, 12 Oct 2018 11:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206942/red-river-resources-has-record-september-quarter-at-zinc-mine-206942.html
<![CDATA[News - Red River Resources intersects high-grade gold and base metals between Liontown deposits ]]> https://www.proactiveinvestors.com.au/companies/news/204580/red-river-resources-intersects-high-grade-gold-and-base-metals-between-liontown-deposits-204580.html Red River Resources Ltd (ASX:RVR) has intersected high-grade gold, copper and zinc in drilling at the Liontown project within the company’s Thalanga Operations in northern Queensland.

The drilling was undertaken in an area between the two existing Liontown deposits, known as the Liontown Gap.

It returned intercepts of gold-rich polymetallic mineralisation that potentially demonstrate continuity between the Liontown and Liontown East mineral resources.

Total mineral resources across the two deposits amounts to 3.6 million tonnes at 10% zinc equivalent.

READ: Red River Resources valued at more than double the current price by Hartleys

Highlighted intercepts include: 1.75 metres at 16.4 g/t gold, 6.3% copper, 4.1% lead, 4.2% zinc and 56 g/t silver (or 38.2% zinc equivalent) from 419.05 metres; and 2.6 metres at 15.3 g/t gold, 2.8% copper, 4.5% lead, 8.2% zinc and 43 g/t silver (or 30.2% zinc equivalent) from 236.3 metres.

The drilling supports potential strike extensions of up to 500 metres, which would ultimately link the Liontown and Liontown East mineral resources.

Red River plans to continue drilling the Liontown Gap with the objective of continuing to define gold-rich polymetallic mineralisation and to extend the mineral resource into the area.

Drill core from hole LTDD18015 - 2.6 metres at 30.2% zinc equivalent

  READ: Red River Resources reveals maiden JORC resource at Liontown East

The results provide Red River confidence in historical drill assays and confirm the high-grade, gold-rich nature of the Carrington lode mineralisation.

The lode sits in the footwall of the Liontown mineralisation and is hosted in a dacite pumice breccia unit.

The Liontown-Liontown East horizon in the gap area has been identified, but as of yet does not host economic mineralisation.

Red River also received assay results for two other holes from the area, but no material results were returned for either hole.

READ: Red River Resources extends West 45 mining contract, begins diamond drilling

Red River is a base metal producer with its key asset being the Thalanga Operations.

The company began concentrate production in September 2017 and is focused on maximising returns by extending mine life through increasing mineral resources and ore reserves at deposits in the mine plan.

It also plans to convert mineral resources like Liontown into ore reserves and explore a growing pipeline of targets in the surrounding area.

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Mon, 10 Sep 2018 22:02:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204580/red-river-resources-intersects-high-grade-gold-and-base-metals-between-liontown-deposits-204580.html
<![CDATA[News - Red River Resources valued at more than double the current price by Hartleys ]]> https://www.proactiveinvestors.com.au/companies/news/202433/red-river-resources-valued-at-more-than-double-the-current-price-by-hartleys-202433.html Red River Resources Limited (ASX:RVR) has been maintained a Buy by Hartleys, with a 12-month price target of 61 cents per share, more than double the company’s current trading price of 24 cents.

Red River is a high-grade, low cost zinc producer focused on the Thalanga Operation in Queensland.

The following is an extract from the broker report.

We recently visited the Thalanga Operation in North Queensland, and we were impressed by the development completed to date (at both underground mines) and the improving performance from the Thalanga plant, with high quality concentrate production with zinc and lead recoveries increasing to targeted levels.

June quarter report highlighted record tonnes mined from the West 45 underground.

West 45 Development Face

Processing rates were also higher quarter-on-quarter (+13%) and with higher mining rates increasing stock levels, we envisage improved ore availability for processing in the coming quarters.

Productivity improvements underground, costs to decline

The capital development of the West 45 underground now largely complete, with only one more development level required for the current mine plan, and additional stoping fronts are anticipated in the second half of calendar year 2018.

With increased stopes on-line, mine grades are expected to lift and the current mining rate of about 1,000 tonnes per day is expected to be sustained.

The company has also committed to a 4,500-metre underground diamond drilling program with the aim of adding mine life (currently +1.5 years).

Far West Portal

Red River had about 15,000 tonnes of ROM ore stocks at quarter end.

Development is progressing well for the Far West underground (Red River’s second mine) with first development ore expected Q3 FY19 and stoping ore in Q4.

At this stage +5 year mine (reserve) life at 300,000 tonnes per annum mining rate is expected, but a life of mine +7 years is assumed (system remains open at depth).

Valuation – update

We have used the company’s restart study as the basis of our modelling for Thalanga, with additional mine life.

We see significant potential to extend the current deposits in the mine plan (West 45, Far West and Waterloo) and anticipate new deposits (Liontown/Liontown East) will be added into the plan over time.

Zinc concentrate transport

Red River has significant exploration upside from its portfolio of prospects within the highly prospective Mt Windsor Belt, with the discovery of further high-grade polymetallic mineralisation within the region as highly probable.

We assume a nominal $50 million (10 cents per share) value for exploration potential.

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Wed, 08 Aug 2018 14:05:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202433/red-river-resources-valued-at-more-than-double-the-current-price-by-hartleys-202433.html
<![CDATA[News - Red River Resources reveals maiden JORC resource at Liontown East ]]> https://www.proactiveinvestors.com.au/companies/news/200997/red-river-resources-reveals-maiden-jorc-resource-at-liontown-east-200997.html Red River Resources Ltd (ASX:RVR) has revealed its maiden resource of 1.5 million tonnes grading 12.2% zinc equivalent at the Liontown East deposit within the Thalanga Project, Queensland.

The addition of this polymetallic massive sulphide deposit increases Thalanga’s overall resource by 27% to 7.1 million tonnes grading 13.0% zinc equivalent.

Notably, Liontown and Liontown East are part of the same mineralised system which remains open along strike and depth.

A scoping study is set to commence in the current December half and Liontown is expected to be next in the development pipeline at the Thalanga operations after the Waterloo deposit.

The Liontown East deposit is located about one kilometre from the Liontown deposit.

Further drilling planned at Liontown

Red River is planning to undertake further drilling at Liontown to further expand the JORC resource and convert the resource into higher JORC categories.

Notably, drilling will also test the gap between the Liontown and Liontown East deposits.

The Liontown scoping study set to commence aims to identify the likely development pathway for the project.

The Thalanga operations now consists of six deposits, however, only the West 45, Far West and Waterloo deposits are part of the current mine plan.

 

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Wed, 18 Jul 2018 11:52:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200997/red-river-resources-reveals-maiden-jorc-resource-at-liontown-east-200997.html
<![CDATA[News - Red River Resources extends West 45 mining contract, begins diamond drilling ]]> https://www.proactiveinvestors.com.au/companies/news/200636/red-river-resources-extends-west-45-mining-contract-begins-diamond-drilling-200636.html Red River Resources Ltd (ASX:RVR) has awarded PYBAR Mining Services a two year extension to the underground mining contract at West 45 mine within the Thalanga zinc operation in North Queensland.

The extension begins in January 2019 and will run for two years or until the zinc, lead, copper, gold and silver mine is depleted.

Red River has also started a 4,500-metre underground diamond drilling program to further extend West 45’s mine life.

READ: Red River Resources continues to improve production at Thalanga operation

PYBAR is a contractor with a long track record in metalliferous underground mining in Australia, and has an outstanding reputation with respect to safety, execution and quality.

West 45 has an ore reserve of 567,000 tonnes at 0.4% copper, 2.8% lead, 6.4% zinc, 0.3 g/t gold and 53 g/t silver, for a total 11.6% zinc equivalent.

Red River ended the June quarter with a cash balance of $20.2 million, an increase of $2.7 million from March 31, 2018, and has no debt.

READ: Red River Resources moves forward with Far West development by awarding mining contract

The company has invested substantially in exploration and capital development at West 45 and commenced mining at the Far West deposit during the June quarter.

Underground mining at Far West has been also contracted to PYBAR, with an initial length of seven years.

Far West has a reserve of 1.5 million tonnes at 1.3% copper, 1.6% lead, 5.0% zinc, 0.2 g/t gold and 45 g/t silver.

This represents 12% zinc equivalent and the operation has a minimum mine life of five years.

Third Thalanga deposit

The third deposit at the Thalanga project, Waterloo, is Red River’s highest-grade deposit with a resource of 707,000 tonnes at 19.1% zinc equivalent.

Recent drilling at Waterloo was part of an infill and extension program to update the resource and to prepare a maiden ore reserve.

Waterloo remains on track to be the next mine developed after the Far West mine development activities are completed.

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Wed, 11 Jul 2018 23:43:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200636/red-river-resources-extends-west-45-mining-contract-begins-diamond-drilling-200636.html
<![CDATA[News - Red River Resources continues to improve production at Thalanga operation ]]> https://www.proactiveinvestors.com.au/companies/news/200329/red-river-resources-continues-to-improve-production-at-thalanga-operation-200329.html Red River Resources Limited (ASX:RVR) has achieved improved operating performance from its Thalanga Operation in Northern Queensland during the June quarter.

Notably, electrical switchgear upgrade at the West 45 mine materially reduced downtime due to power outages.

Combined with increases in production drilling and cemented rock filling productivity rates, Red River mined record tonnes at the West 45.

Thalanga operations summary

Importantly, Red River ended the quarter with a cash balance of $20.2 million, an increase of $2.7 million from 31 March 2018 and has no debt.

The company has invested substantially in exploration and capital development at West 45 and commenced mining at Far West during the quarter.

READ: Red River Resources moves forward with Far West development by awarding mining contract

The company also has strong exploration results from the Liontown East Project as it moves towards the declaration of a maiden Liontown East JORC resource.

READ: Red River Resources drill results continue to suggest potential for longer mine life ]]>
Mon, 09 Jul 2018 16:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200329/red-river-resources-continues-to-improve-production-at-thalanga-operation-200329.html
<![CDATA[News - Red River Resources moves forward with Far West development by awarding mining contract ]]> https://www.proactiveinvestors.com.au/companies/news/200248/red-river-resources-moves-forward-with-far-west-development-by-awarding-mining-contract-200248.html Red River Resources Limited (ASX:RVR) has awarded a contract for underground mining at its Far West mine to PYBAR Mining Services.

Far West is the second deposit to be mined as part of Red River’s Thalanga zinc operation in Northern Queensland.

READ: Red River Resources begins developing second underground mine at Thalanga Zinc Project

The initial length of the Far West underground mining contract with PYBAR is seven years.

PYBAR is an Australian owned underground mining contractor with a long track record in metalliferous underground mining in Australia, and has an outstanding reputation with respect to safety, execution and quality.

Far West Portal

The company recently started developing the Far West mine, which will be the second underground mine at the Thalanga Zinc Project.

Far West has a JORC-compliant reserve of 1.5 million tonnes at 1.3% copper, 1.6% lead, 5.0% zinc, 0.2 g/t gold and 45 g/t silver.

This represents 12.0% zinc equivalent and the operation has a minimum mine life of five years.

Far West Portal

The company is focused on maximising returns from the Thalanga project by increasing plant throughput and extending mine life.

This is intended to be done by increasing resources and reserves at deposits in the mine plan - West 45, Thalanga Far West and Waterloo.

READ: Red River Resources on track to develop Waterloo deposit with new high-grade drill results

The company is continuing to receive further positive results from drilling at the Waterloo polymetallic massive sulphide deposit.

Highlights from the recent drilling includes 7.8 metres at 36.5% zinc equivalent (3.9% copper, 3.6% lead, 17.5% zinc, 1.0 g/t gold and 94 g/t silver) from 248.20 metres.

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Fri, 06 Jul 2018 12:31:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200248/red-river-resources-moves-forward-with-far-west-development-by-awarding-mining-contract-200248.html
<![CDATA[News - Red River Resources has fund manager increase stake ]]> https://www.proactiveinvestors.com.au/companies/news/200076/red-river-resources-has-fund-manager-increase-stake-200076.html Red River Resources Ltd (ASX:RVR) has had one of its major shareholders, Tribeca Investment Partners Pty Ltd, increase its stake in the company to 7.27% from 6.26%.

Tribeca Investment Partners is a well-known Australian boutique fund manager with a reputation for delivering on performance targets, established in 1998.

READ: Red River Resources receives vote of confidence from Canaccord Genuity

Last month, Red River hosted broker Canaccord Genuity on-site at its Thalanga zinc operations in Queensland.

Canaccord continues to rate the stock a speculative buy with a $0.50 price target, nearly double the last traded price of 25.5 cents.

READ: Red River Resources on track to develop Waterloo deposit with new high-grade drill results

Waterloo is Red River’s highest grade deposit with a current resource of 707,000 tonnes at 19.1% zinc equivalent.

Recent drilling at Waterloo was part of an infill and extension program to update the resource and to prepare a maiden ore reserve.

Waterloo remains on track to be the next mine developed by Red River after the current Far West mine development activities are completed.

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Wed, 04 Jul 2018 08:38:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200076/red-river-resources-has-fund-manager-increase-stake-200076.html
<![CDATA[News - Red River Resources receives vote of confidence from Canaccord Genuity ]]> https://www.proactiveinvestors.com.au/companies/news/198491/Red-River-Resources-receives-vote-of-confidence-from-Canaccord-Genuity-198491.html Red River Resources Ltd (ASX:RVR) has hosted broker Canaccord Genuity on-site at its Thalanga Operations in Queensland.

Canaccord continue to rate the stock a speculative buy with a $0.50 price target, well above the last traded price of $0.29. The following is an extract from their latest report.

Site visit: Thalanga improving, West 45 coming good:

We came away from our site visit confident that various factors (weather, stope cycling, power reliability) that impacted MarQ’18 production are behind RVR.

An additional underground drill rig, combined with more efficient CRF rates are likely to speed up stoping cycles at West 45.

This is likely to translate to more consistent mill feed and has driven slight upwards revisions to our short-term estimates.

We expect 80kt of mined feed out of West 45 over JunQ’18 (+20% QoQ) for 3.6kt of Zinc production at A$1.24/lb C3 costs (net credits).

We have also adjusted FY19 grade as mining moves into higher grade mineralised lenses.

An updated mine plan is expect to generate maiden production guidance which we expect to be released in early FY19.

Far West development begins, first ore early 2019:

Blasting for the box cut took place in late May’18 with portal development now commencing.

Contractor selection for underground development is expected over the next few weeks with total capital expenditure of ~A$8m comfortably funded by current cash position ($17m at end of MarQ’18).

The current resource remains open at depth and any success to extend the current resource (1.7Mt at 12% Zn Eq.) provides RVR additional feed to utilise the ~50% spare capacity of the Thalanga mill.

Liontown East Resource due mid-2018:

RVR has maintained a dedicated resource definition program at Liontown East with a maiden resource to augment the current resource 700m away at Liontown (2Mt at 8.3% Zn Eq.) due in the coming weeks.

In parallel, RVR has also stepped out to 150m intervals to test mineralisation along strike towards Liontown to verify IP anomalies that were encountered in early geological studies.

Attractive Base Metals exposure:

We expect that as Thalanga stabilises and cost and production guidance are provided, the attractive multiples that RVR trades on will start to get attention.

At a 2.8x FY19 P/CF, RVR is trading at a healthy discount to more established producers such Sandfire Resources (ASX-SFR: $8.71 | HOLD | Patrick Chang) at 7.1x with a comparable mine life (~6 years).

Valuation and Recommendation:

As a result of minor changes to modelled production and cost estimates, our target price remains unchanged at A$0.50/share with a current P/NAV of 0.6x supporting our SPEC BUY recommendation.

Our valuation is based on a NAV 8% for operating assets net of corporate and other adjustments.

We view the price weakness that has prevailed since a soft MarQ’18 was flagged is long dated and not reflective of the key improvement we observed that should lift production QoQ over JunQ’18.

With a limited choice of base metals producers and several upcoming potential catalysts we view RVR as attractively priced at these levels.

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Fri, 08 Jun 2018 08:47:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198491/Red-River-Resources-receives-vote-of-confidence-from-Canaccord-Genuity-198491.html
<![CDATA[News - Red River Resources on track to develop Waterloo deposit with new high-grade drill results ]]> https://www.proactiveinvestors.com.au/companies/news/198324/red-river-resources-on-track-to-develop-waterloo-deposit-with-new-high-grade-drill-results-198324.html Red River Resources Limited (ASX:RVR) is continuing to receive further positive results from drilling at the Waterloo polymetallic massive sulphide deposit, part of its Thalanga Operations in Queensland.

Highlights from the recent drilling include:

• 7.8 metres at 36.5% zinc equivalent (3.9% copper, 3.6% lead, 17.5% zinc, 1.0 g/t gold and 94 g/t silver) from 248.20 metres down hole; and
• 20.20 metres at 18.6% zinc equivalent from 195.4 metres including an exceptionally high-grade interval of 5.50 metres at 44.8% zinc equivalent (2.7% copper, 5.1% lead, 27.7% zinc, 0.9 g/t gold and 129 g/t silver) from 210.10 metres.

Waterloo to be the next mine development after Far West

Waterloo is Red River’s highest grade deposit with a current resource of 707,000 tonnes at 19.1% zinc equivalent.

The recent drilling is part of an infill and extension program at Waterloo to update the resource and to prepare a maiden ore reserve.

Waterloo remains on track to be the next mine developed by Red River after the current Far West mine development activities are completed.

READ: Red River Resources’ blast at Far West sets the stage for underground development

Far West has a JORC reserve of 1.5 million tonnes at 12% zinc equivalent and a minimum mine life of five years.

Red River recently completed the main blast at the Far West Box Cut site.

WATCH: Video of the blast

Red River commenced concentrate production at the Thalanga Operation in September 2017 and is focused on maximising returns from the project by increasing plant throughput and extending mine life.

This is intended to be done by increasing resources and reserves at deposits in the mine plan - West 45, Far West and Waterloo.

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Wed, 06 Jun 2018 12:57:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198324/red-river-resources-on-track-to-develop-waterloo-deposit-with-new-high-grade-drill-results-198324.html
<![CDATA[News - Red River Resources’ blast at Thalanga Far West sets the stage for underground development ]]> https://www.proactiveinvestors.com.au/companies/news/197414/red-river-resources-blast-at-thalanga-far-west-sets-the-stage-for-underground-development-197414.html Red River Resources Limited (ASX:RVR) has successfully completed the main blast at the Far West Box Cut site at its Thalanga Zinc Project in Central Queensland.

WATCH: Video of the main blast

Underground development of Thalanga Far West is expected to commence shortly after the completion of the box cut.

Red River is presently going through the contractor selection process for the underground development.

Thalanga Far West has a JORC reserve of 1.5 million tonnes at 12% zinc equivalent and a minimum mine life of five years.

READ: Red River Resources begins developing second underground mine at Thalanga Zinc Project

Far West mine will be the second underground mine at the company’s Thalanga Zinc Project.

The surface development contract at Far West has been awarded to PYBAR Mining Services, which is undertaking underground mining at the company’s West 45 underground mine.

Red River is focused on maximising returns from the project by increasing plant throughput and extending mine life.

This is intended to be done by increasing resources and reserves at deposits in the mine plan - West 45, Thalanga Far West and Waterloo.

READ: Red River Resources drill results continue to suggest potential for longer mine life

In March, Red River received further high-grade assay results from drilling at the Liontown East discovery within the project.

The assay results further extend Liontown East and support the thesis that it can be converted into a minable deposit at Thalanga and increase its current mine life.

The results include 18.15 metres at 8.8% zinc equivalent from 517.25 metres down-hole and 23 metres at 8.25% zinc equivalent from 219 metres down-hole.

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Tue, 22 May 2018 12:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197414/red-river-resources-blast-at-thalanga-far-west-sets-the-stage-for-underground-development-197414.html
<![CDATA[News - Red River Resources begins developing second underground mine at Thalanga Zinc Project ]]> https://www.proactiveinvestors.com.au/companies/news/197149/red-river-resources-begins-developing-second-underground-mine-at-thalanga-zinc-project-197149.html Red River Resources Limited (ASX:RVR) has started developing the Far West mine, which will be the second underground mine at the company’s Thalanga Zinc Project in central Queensland.

The portal site has been cleared and box cut drilling has started with the main blast expected this week.

Underground development is expected to begin shortly after the completion of the box cut.

READ: Red River Resources has 12-month share price target boosted by Hartleys to 65 cents

The surface development contract at Far West has been awarded to PYBAR Mining Services, which is undertaking underground mining at the company’s West 45 underground mine.

Red River is going through the contractor selection process for the underground development.

1.5 million tonne reserve

Far West has a JORC-compliant reserve of 1.5 million tonnes at 1.3% copper, 1.6% lead, 5.0% zinc, 0.2 g/t gold and 45 g/t silver.

This represents 12.0% zinc equivalent and the operation has a minimum mine life of five years.

The Far West mineral resource estimate at greater than 5% zinc equivalent.

Red River is the leading ASX-listed pure-play zinc producer with its key asset being the Thalanga project.

Concentrate production at the project began in September 2017.

READ: Red River Resources drill results continue to suggest potential for longer mine life

The company is focused on maximising returns from the project by increasing plant throughput and extending mine life.

This is intended to be done by increasing resources and reserves at deposits in the mine plan - West 45, Thalanga Far West and Waterloo.

The strategy also includes converting resources into reserves at Liontown and Orient, and by continuing to aggressively explore a growing pipeline of targets within the surrounding area.

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Thu, 17 May 2018 11:49:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197149/red-river-resources-begins-developing-second-underground-mine-at-thalanga-zinc-project-197149.html
<![CDATA[News - Red River Resources director buys more shares on market ]]> https://www.proactiveinvestors.com.au/companies/news/196961/red-river-resources-director-buys-more-shares-on-market-196961.html Red River Resources Limited (ASX:RVR) has had 167,830 of its shares purchased on-market by its director Mark Hanlon.

Hanlon spent $45,314 buying shares priced at 27 cents each, increasing his total holding in the company to 3.1 million shares.

During the March quarter, Red River generated sales of $16.5 million with $10.4 million from the sale of zinc metal in concentrate from its Queensland-based Thalanga project.

READ: Red River Resources in strong cash position with compelling fiscal 2019 zinc fundamentals

Canaccord is forecasting zinc production to increase from 11,200 tonnes in 2018 to 21,200 tonnes in 2019, and copper production is projected to increase more than three-fold.

Furthermore, this growth is expected to be sustained into fiscal 2020 with zinc production increasing to 26,800 tonnes.

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Tue, 15 May 2018 12:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196961/red-river-resources-director-buys-more-shares-on-market-196961.html
<![CDATA[News - Red River Resources managing director buys shares on market ]]> https://www.proactiveinvestors.com.au/companies/news/196860/red-river-resources-managing-director-buys-shares-on-market-196860.html Red River Resources Ltd (ASX:RVR) has received a vote of confidence from its managing director, Mel Palancian, who recently purchased company shares on-market.

Palancian purchased 20,000 shares through on-market trades increasing his total holding in the company to 445,000 shares.

READ: Red River Resources has 12-month share price target boosted by Hartleys to 65 cents

Red River is producing predominantly zinc concentrate from its flagship Thalanga Zinc Project in Queensland.

A total of 65,000 tonnes of ore was mined during the March quarter at an average grade of 0.4% copper, 2.5% lead and 4.8% zinc.

READ: Red River Resources' share price upside may be driven by exploration success and production growth

During the March quarter, Red River generated concentrate sales of $16.5 million.

Cash at bank at the end of the March quarter was $17.5 million with an additional $5.2 million cash relating to the quarter’s sales received subsequent to the end of the quarter.

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Mon, 14 May 2018 08:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196860/red-river-resources-managing-director-buys-shares-on-market-196860.html
<![CDATA[News - Red River Resources has 12-month share price target boosted by Hartleys to 65 cents ]]> https://www.proactiveinvestors.com.au/companies/news/196393/red-river-resources-has-12-month-share-price-target-boosted-by-hartleys-to-65-cents-196393.html Red River Resources Limited (ASX:RVR) has had its buy recommendation maintained by Hartleys with its 12-month share price target boosted by 5 cents to 65 cents.

This represents significant upside for the zinc producer with the stock trading at 26 cents.

The price target is also almost 59% higher than the company’s 12-month high of 41 cents reached on February 2, 2018.

READ: Red River Resources in strong cash position with compelling fiscal 2019 zinc fundamentals

Hartleys' report was issued after Red River’s March quarterly results which showed that the Thalanga operations performed well with recoveries improving and concentrates of a very high quality.

This came despite bad weather impacting operations at the North Queensland project.

The weather caused a number of grid power outages and resulted in lower than anticipated underground ore mined and milled during the quarter.

Additional power safeguards

Red River is implementing additional safeguards to ensure the power interruptions do not impact production during the next wet season.

There were 4,428 dmt of zinc concentrate, 1,523 dmt of lead concentrate and 484 dmt of copper concentrate produced in the March quarter.

The following is an extract from the report:

Recoveries improving

Zinc recoveries are moving closer to the targeted level of around 89%, up over 14% quarter-on-quarter (qoq) for 86.5% and lead recoveries have also increased over 4% qoq for 73.5% (target about 80%).

While copper recoveries have increased from 36.6% to 50.6%, they are well below the targeted levels of about 80% and further improvements are expected.

The plant was running at the annualised rate of around 320 ktpa in the December quarter, but only achieved a rate of about 250 ktpa in the March quarter.

Filling more mill capacity a key focus

Filling more of the idle mill capacity is a key focus area for RVR, and we envisage increased throughput in coming quarters, especially as stoping production from West 45 underground continues to improve.

Processed grades were lower qoq, but are expected to increase as the ‘honey-pot’ area of high-grade is accessed within West 45.

Hedging program

RVR has introduced a QP hedging program for sales of zinc and lead metal produced, to offset the risk of price volatility during the sales period.

The quarter generated sales revenue of $16.5 million ($17.5 million Dec quarter) for site EBITDA of $3.7 million ($8.6 million Dec quarter).

Costs higher

Costs were higher qoq with payable zinc metal of 4.8Mlb (down from 6.9Mlb) and reported payable C1 cash costs of US$0.84/lb zinc and C3 cash costs of US$1.67/lb zinc.

This was impacted by lower production (and reduced credits), along with increased development and use of cemented rock-fill.

The use of cemented rock-fill is not for the entire mine, just at this stage for the crown pillar level to enable stoping.

Development costs for West 45 are expected to reduce, especially as the decline is now at the bottom of the current mine plan.

Cash at bank at the end of the March quarter was $17.5 million, down from $23.2 million, but additional sales were received in early April of $5.2 million for cash of $22.7 million.

READ: Red River Resources moves to full ownership in Mt Windsor tenements

Exploration drilling was somewhat impacted by the higher than average rainfall for the quarter but more outstanding results were reported from Liontown East.

This continues to demonstrate good mineralised continuity with the high-grade system still open.

Maiden Liontown East resource

A maiden resource for Liontown East is expected before the end of 2018.

We see the potential for Liontown and Liontown East to come into the Thalanga mine plan over time.

RVR has significant exploration upside from its portfolio of VMS prospects within the highly prospective Mt Windsor Belt, with the discovery of further high-grade polymetallic mineralisation within the region as highly probable.

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Fri, 04 May 2018 12:42:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196393/red-river-resources-has-12-month-share-price-target-boosted-by-hartleys-to-65-cents-196393.html
<![CDATA[News - Red River Resources in strong cash position with compelling fiscal 2019 zinc fundamentals ]]> https://www.proactiveinvestors.com.au/companies/news/195913/red-river-resources-in-strong-cash-position-with-compelling-fiscal-2019-zinc-fundamentals-195913.html Red River Resources Limited (ASX:RVR) put in a strong opening quarter to 2018 and as at March 31, the zinc producer had cash of $17.5 million.

The company also had an additional $5.2 million in cash relating to the quarter’s sales from its Queensland-based Thalanga project, received subsequent to the end of March.

The company is in a robust financial position, as it also has financial assets of $8.8 million and an undrawn working capital facility of US$10 million.

Zinc sales lead the way

During the March quarter, Red River generated sales of $16.5 million with $10.4 million from the sale of zinc metal in concentrate.

Sales of lead metal in concentrate generated revenue of $2.8 million, while $3.2 million was received from sales of copper metal in concentrate and precious metals contained in concentrates.

Thalanga generating strong earnings

Thalanga’s quarterly EBITDA was $3.7 million, resulting in the fiscal year-to-date EBITDA standing at $12.3 million.

Canaccord is forecasting group EBITDA of $23.8 million in fiscal 2018, increasing to $63.3 million in fiscal 2019, courtesy of a near doubling in zinc production from Thalanga.

Following a 25% retracement in the company’s share price, it is now trading at a steep discount to the broker’s price target of 50 cents.

Compelling 2019 fundamentals

The company is very much a 2019 story from a valuation perspective and perhaps some investors have lost sight of the company’s medium-term compelling fundamentals.

Canaccord is forecasting zinc production to increase from 11,200 tonnes in 2018 to 21,200 tonnes in 2019, and copper production is projected to increase more than three-fold.

Furthermore, this growth is expected to be sustained into fiscal 2020 with zinc production increasing to 26,800 tonnes.

The broker is forecasting a net profit of $39.5 million in fiscal 2019, representing earnings per share of 8 cents.

This sees the company trading on a forward PE multiple of less than four relative to Friday morning’s opening price of 30 cents.

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Fri, 27 Apr 2018 12:26:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195913/red-river-resources-in-strong-cash-position-with-compelling-fiscal-2019-zinc-fundamentals-195913.html
<![CDATA[News - Red River Resources moves to full ownership in Mt Windsor tenements ]]> https://www.proactiveinvestors.com.au/companies/news/193194/red-river-resources-moves-to-full-ownership-in-mt-windsor-tenements-193194.html Red River Resources Ltd (ASX:RVR) has paid $150,000  to acquire the remaining 49% interest in three exploration licences extending the greater Thalanga Project to the east.

The licences were originally subject to a joint venture agreement with Natural Resources Exploration, which Red River entered into in April 2015.

The acquisition of NRE’s remaining 49% interest in EPM 18470, EPM 18471 and EPM 18713 consolidates Red River’s ground holding in the highly prospective Mt Windsor Belt.

Plans for the newly acquired area

Red River intends to continue the systematic exploration program that was commenced in early 2015.

This includes a program of soil sampling, mapping, geophysical exploration to define drill targets together with drill testing of known drill ready targets.

Drill ready targets include Truncheon Advanced Argillic, Highway East, Rustler, Snake Oil, Vice Squad and Stock Squad West.

READ: Red River Resources drill results continue to suggest potential for longer mine life

Most recently, Red River received further high-grade assay results from drilling at the Liontown East discovery within the Thalanga Zinc Project in Queensland.

The assay results further extend Liontown East and support the thesis that it can be converted into a minable deposit at Thalanga and increase its current mine life.

Latest results include 18.15 metres at 8.8% zinc equivalent from 517.25 metres down-hole and 23 metres at 8.25% zinc equivalent from 219 metres down-hole.

READ: Red River Resources' share price upside may be driven by exploration success and production growth

Red River completed its first shipment of zinc concentrate from Thalanga earlier this year.

Red River mined 67,000 tonnes of ore from the West 45 underground deposit during the December quarter at an average grade of 0.3% copper, 2.5% lead and 5.7% zinc.

The deposits currently in the mine plan at the Thalanga operations are West 45, Thalanga Far West and Waterloo.

A number of emerging deposits have good potential to be added to the mine plane and increase the mine’s llifespanand value.

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Thu, 15 Mar 2018 10:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193194/red-river-resources-moves-to-full-ownership-in-mt-windsor-tenements-193194.html
<![CDATA[News - Red River Resources' share price upside may be driven by exploration success and production growth ]]> https://www.proactiveinvestors.com.au/companies/news/192732/red-river-resources-share-price-upside-may-be-driven-by-exploration-success-and-production-growth-192732.html Red River Resources Ltd (ASX:RVR) made an impressive start to the year, completing the first shipment of zinc concentrate from its Thalanga Zinc Project in Queensland.

In terms of timing around ramp up to full production and resource size, Red River is considered one of the best emerging zinc stories in Australia.

While the maiden shipment was exciting news for the company, it is still very much an exploration driven play with multiple drilling programs underway.

READ: Red River Resources drill results continue to suggest potential for longer mine life

The deposits currently in the mine plan at the Thalanga operations are West 45, Thalanga Far West and Waterloo.

Management sees potential for mine life extensions

The deposits under exploration are all in relatively close proximity to the Thalanga processing plant.

Management is focused on maximising returns by increasing planned throughput and extending mine life.

Mel Pelancian, managing director, said: “Increasing ore reserves at West 45 combined with the recently announced maiden ore reserve at Far West is an outstanding result for the future of Red River.

“There is also the potential for further mine life extensions at depth and along strike.”

Production helps to self-fund exploration

Red River mined 67,000 tonnes of ore from the West 45 underground deposit during the December quarter at an average grade of 0.3% copper, 2.5% lead and 5.7% zinc.

There were 79,000 tonnes of ore milled at the Thalanga operations grading 0.5% copper, 3.2% lead and 6.2% zinc.

The operations generated cash of $6.8 million for the quarter and the company’s cash balance increased by $7.6 million to $23.2 million.

Commencement of predictable cash flows and the projected increase in cash generation as production increases will provide Red River with the capacity to internally fund exploration.

This is important at a stage where the company is transitioning to profitability, as shareholders should not see substantial earnings dilutive capital raisings.

Multiple catalysts on the horizon

The advanced nature of the project and the derisking that has occurred over the last 12 months has been instrumental in providing strong share price momentum.

The increase from 17 cents in May 2017 to a 12-month high of 41 cents in February represented a gain of circa 150%.

This was largely driven by promising exploration results at the Thalanga project, the establishment of an offtake agreement, and the company’s transition from explorer to producer.

Analysts like the story

Mike Millikan, resource analyst at Hartleys sees the scope for further share price upside as exploration accelerates in surrounding areas.

He has particularly high expectations regarding the high-grade polymetallic Liontown East deposit.

In late January, Millikan said: “Drilling is ongoing, with a hole in progress intersecting strong mineralisation.

“This included more than 15 metres of massive/semi-massive sulphides and excess of 21 metres of stringer sulphides.

“Liontown and Liontown East highlight good potential to come into the Thalanga mine plan over time.”

Potential for production driven rerating

Millikan has a buy recommendation on the stock with a 12-month price target of 64 cents.

This could be achieved if investors are waiting to see evidence management can achieve the proposed production metrics, including cost projections, as the project moves to full capacity.

Hartleys expects production to increase more than 50% from 21,000 tonnes of zinc equivalent in fiscal 2018 to 34,000 tonnes of zinc equivalent in fiscal 2019.

Red River looks fundamentally undervalued

Based On the broker’s projections, this should generate fiscal 2019 net profit of $32 million, representing earnings per share of 9 cents.

These projections are based on a seemingly conservative commodity price assumption.

The broker is forecasting an average zinc price of US$1.10 per pound in fiscal 2019, and its forecasts are based on an exchange rate of US$0.76.

The spot zinc price is US$1.50 per pound, and it hasn’t traded at US$1.10 per pound since 2016.

Liontown East delivers

On the exploration front, it would appear that Millikan was on the mark with further promising assay results from drilling at the Liontown East just coming to hand.

Latest results include 18.15 metres at 8.8% zinc equivalent from 517.25 metres down-hole and 23 metres at 8.25% zinc equivalent from 219 metres down-hole.

Red River is also focused on converting mineral resources into ore reserves at Liontown.

The orebody remains open and the company plans to aggressively continue to define further extensions.

West 45 increase in ore reserve strategically important

An updated ore reserve at the West 45 deposit, part of the broader Thalanga project, also had an impact on the group’s investment merits.

The 10% increase in contained metal on a zinc equivalent basis effectively extended its mine life to at least 2019.

Importantly, there will be a period of simultaneous production from West 45 and Far West in 2018/2019 resulting in increased mill throughput.

Life of mine plan a potential catalyst

In tandem with these developments, an optimised life of mine plan will be released in early 2018 and this is a potential share price catalyst.

While West 45 didn’t represent a substantial increase in mine life, the company has only scratched the surface in that area and management is confident of further success.

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Wed, 07 Mar 2018 13:52:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192732/red-river-resources-share-price-upside-may-be-driven-by-exploration-success-and-production-growth-192732.html
<![CDATA[News - Red River Resources drill results continue to suggest potential for longer mine life ]]> https://www.proactiveinvestors.com.au/companies/news/192722/red-river-resources-drill-results-continue-to-suggest-potential-for-longer-mine-life-192722.html Red River Resources Ltd (ASX:RVR) has received further high-grade assay results from drilling at the Liontown East discovery within the Thalanga Zinc Project in Queensland.

The assay results further extend Liontown East and support the thesis that it can be converted into a minable deposit at Thalanga and increase its current mine life.

Latest results include 18.15 metres at 8.8% zinc equivalent from 517.25 metres down-hole and 23 metres at 8.25% zinc equivalent from 219 metres down-hole.

Liontown East remains open

The deposits currently in the mine plan at the Thalanga operations are West 45, Thalanga Far West and Waterloo.

Red River is also focused on converting Mineral Resources into Ore Reserves at the Liontown and Orient resource bodies.

Liontown East is 700 metres from the eastern edge of the current Liontown resource.

Liontown East remains open and the company plans to aggressively continue to define further extensions.

READ: Red River Resources continues to deliver high-grade zinc results at Thalanga project

Furthermore, drilling continues and more assays are pending, including for hole LTED13, which intersected 1.4 metres of massive sulphides and 4.3 metres of semi-massive sulphides.

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Wed, 07 Mar 2018 10:48:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192722/red-river-resources-drill-results-continue-to-suggest-potential-for-longer-mine-life-192722.html
<![CDATA[News - Red River Resources recommences full site operations tomorrow ]]> https://www.proactiveinvestors.com.au/companies/news/192567/red-river-resources-recommences-full-site-operations-tomorrow-192567.html Red River Resources Limited (ASX:RVR) will recommence full site operations tomorrow at its Thalanga zinc operations in central Queensland.

Access roads to the Thalanga operations were recently temporarily restricted due to bad weather.

READ: Red River Resources places zinc project on standby due to severe weather

Red River is a pure-play zinc producer and commenced concentrate production at the Thalanga Zinc Project in September 2017.

The company is focused on maximising returns from the project by increasing plant throughput and extending mine life through Mineral Resources and Ore Reserves upgrades.

The deposits currently in the mine plan (West 45, Thalanga Far West and Waterloo) will be the targets of these upgrades.

Liontown and Orient also present growth opportunities

The company is also focused on converting Mineral Resources into Ore Reserves at the Liontown and Orient resource bodies.

Most recently, Red River received further high-grade assay results from the Liontown East discovery.

READ: Red River Resources continues to deliver high-grade zinc results at Thalanga project ]]>
Mon, 05 Mar 2018 11:38:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192567/red-river-resources-recommences-full-site-operations-tomorrow-192567.html
<![CDATA[News - Red River Resources places zinc project on standby due to severe weather ]]> https://www.proactiveinvestors.com.au/companies/news/192396/red-river-resources-places-zinc-project-on-standby-due-to-severe-weather-192396.html Red River Resources Limited (ASX:RVR) has placed its Thalanga Zinc Project on standby due to an extended period of severe weather in northern Queensland.

Access roads to the Thalanga operations near Charters Towers have been temporarily restricted, impacting the ability to safely move operational staff to and from the site.

Production activities, particularly the underground operations at West 45, have been impacted by the weather and associated grid power outages in the past two months.

READ: Red River Resources continues to deliver high-grade zinc results at Thalanga project

The company expects to recommence full site operations early next week.

A skeleton crew remains on site whilst operations are on standby.

Operations have also been affected by a slower than expected transition from development to stoping ore.

This has resulted in lower than expected underground ore production and reduced concentrate production.

READ: Red River Resources completes first shipment of zinc concentrate from Thalanga

Red River started producing concentrate at Thalanga in September 2017 and is focused on maximising returns by increasing plant throughput and extending mine life.

It aims to do this by increasing resources and reserves at the West 45, Thalanga Far West and Waterloo deposits that are included in the mine plan.

This strategy also includes potentially converting resources into reserves at Liontown and Orient and aggressively exploring a growing pipeline of high-quality regional targets.

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Thu, 01 Mar 2018 14:53:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192396/red-river-resources-places-zinc-project-on-standby-due-to-severe-weather-192396.html
<![CDATA[News - Red River Resources continues to deliver high-grade zinc results at Thalanga project ]]> https://www.proactiveinvestors.com.au/companies/news/191808/red-river-resources-continues-to-deliver-high-grade-zinc-results-at-thalanga-project-191808.html Red River Resources Limited (ASX:RVR) has received further high-grade assay results from the Liontown East discovery, part of its Thalanga Zinc Project in Queensland.

The Liontown East discovery is located circa 700 metres from the eastern edge of the current resource.

Assay results further extend Liontown East

Red River’s drilling was aimed at testing the up-dip continuity of the Liontown East base metal mineralisation and returned a high-grade intercept of:

• 15.58 metres at 15.8% zinc equivalent (0.4% copper, 4.0% lead, 8.6% zinc, 1.2 g/t gold and 60 g/t silver) from 419 metres; including 10.28 metres at 19.2% zinc equivalent.

READ: Red River Resources drills high-grade zinc at Thalanga project

Two other holes also intersected the Liontown East base metal mineralisation:

• 44 metres of mineralisation consisting of 23 metres of massive and semi massive sulphides from 517 metres down-hole and 21 metres of stringer mineralisation from 540 metres; and
• Two zones of semi-massive sulphides with discreet massive narrow lenses between 434 metres and 438 metres and between 445 metres and 453.8 metres.

These two drill holes are currently being logged, and when logging has been completed, will be cut and dispatched for assay.

A drillrig has been mobilised to Liontown East to drill a series of shallower holes to test its up-dip potential. Two holes have been completed to date intersecting further mineralisation.

READ: Red River Resources completes first shipment of zinc concentrate from Thalanga

The company recently completed the first shipment of zinc concentrate from its Thalanga Zinc Operation.

The shipment of 5,500 wet metric tonnes of zinc concentrate was loaded at the Port of Townsville to be delivered in China.

Zinc and lead concentrates from Thalanga are sold under an offtake agreement to Singapore based Trafigura.

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Mon, 19 Feb 2018 12:34:00 +1100 https://www.proactiveinvestors.com.au/companies/news/191808/red-river-resources-continues-to-deliver-high-grade-zinc-results-at-thalanga-project-191808.html
<![CDATA[News - Red River Resources completes first shipment of zinc concentrate from Thalanga ]]> https://www.proactiveinvestors.com.au/companies/news/190584/red-river-resources-completes-first-shipment-of-zinc-concentrate-from-thalanga-190584.html Red River Resources Limited (ASX:RVR) has completed the first shipment of zinc concentrate from its Thalanga Zinc Operation in Queensland.

The shipment of 5,500 wet metric tonnes of zinc concentrate was loaded at the Port of Townsville and will arrive at the Port of Lianyungang in China. 

Zinc and lead concentrates from Thalanga are sold under an offtake agreement to Singapore based Trafigura.

READ: Red River Resources finalises offtake agreements

The offtake agreement is a fixed tonnage contract, with tonnage anticipated to be produced during the first three-year period of commercial production.

Trafigura was founded in 1993 and is one of the largest physical commodities trading groups in the world.

Copper concentrate delivered to Glencore

Red River has also completed its first delivery of copper concentrate to Glencore International A.G.

Under the terms of the Glencore Copper Concentrate Offtake Agreement, Glencore will take delivery of copper concentrate from the Thalanga mine gate.

READ: Red River Resources produces zinc in commercial amounts

The first shipment of zinc concentrate and first delivery of copper concentrate follows the successful commissioning and ramp up of the Thalanga Zinc Project, with copper, lead and zinc concentrate production commencing in September 2017.

Subsequently, Red River declared commercial production at Thalanga earlier this week.

Consistent mining output

Red River has mined 67,000 tonnes of ore from the West 45 underground deposit during the December quarter at an average grade of 0.3% copper, 2.5% lead and 5.7% zinc.

There were 79,000 tonnes of ore milled at the Thalanga operations grading 0.5% copper, 3.2% lead and 6.2% zinc.

Operations generated cash of $6.8 million

The operations generated cash of $6.8 million for the quarter and the company’s cash balance increased by $7.6 million to $23.2 million.

Red River’s site team is currently focused on ramping up zinc and lead concentrate grades and recoveries.

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Thu, 25 Jan 2018 11:47:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190584/red-river-resources-completes-first-shipment-of-zinc-concentrate-from-thalanga-190584.html
<![CDATA[News - Red River Resources produces zinc in commercial amounts ]]> https://www.proactiveinvestors.com.au/companies/news/190431/red-river-resources-produces-zinc-in-commercial-amounts-190431.html Red River Resources Limited (ASX:RVR) has declared commercial production at Thalanga Zinc Operations in central Queensland.

The first shipment of zinc concentrate is expected this month and sales of copper concentrate have started.

Provisional payment has also been received for 2,694 wet metric tonnes of lead concentrate.

Shares reached a 12 month high of $0.365 intra day, up 14% on Monday’s close of $0.32.

READ: Red River Resources' shares targeted to double according to Perth broker

The company restarted zinc concentrate production at Thalanga in September 2017 and produced 6,398 dry metric tonnes (dmt) during the December quarter.

There were also 2,859 dmt of lead concentrate and 555 dmt of copper concentrate produced.

Mining at West 45

Red River is mining the West 45 underground deposit and 67,000 tonnes of ore was mined during the quarter at an average grade of 0.3% copper, 2.5% lead and 5.7% zinc.

There were 79,000 tonnes of ore milled at the Thalanga operations grading 0.5% copper, 3.2% lead and 6.2% zinc.

Process throughput is being maintained at an annual rate of 320,000 tonnes.

Throughput has exceeded the restart study target rate of 325,000 tonnes for a number of periods.

Potential to increase throughput

This demonstrates the potential to increase the plant throughput at no extra capital cost.

The operations generated cash of A$6.8 million for the quarter and the company’s cash balance increased by A$7.6 million to A$23.2 million.

Red River’s site team is focused on ramping up zinc and lead concentrate grades and recoveries.

READ: Red River Resources drills high grade zinc at Thalanga project

An optimised life of mine plan, incorporating extended mine life and increased mill throughput, is due for release in the first quarter of 2018.

Production at the Far West mine is expected by the end of 2018 and planning is underway for the Waterloo mine.

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Tue, 23 Jan 2018 15:09:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190431/red-river-resources-produces-zinc-in-commercial-amounts-190431.html
<![CDATA[News - Red River Resources drills high grade zinc at Thalanga project ]]> https://www.proactiveinvestors.com.au/companies/news/190061/red-river-resources-drills-high-grade-zinc-at-thalanga-project-190061.html Red River Resources Limited (ASX:RVR) has received high grade zinc results from its operating Thalanga project in Central Queensland.

One hole has returned 10.7 metres at 8.6% zinc equivalent from 625.2 metres downhole and another returned 4.8 metres at 23.9% zinc equivalent from 379.2 metres downhole.

Results are from drilling at the recent Liontown East discovery, which is 700 metres from the eastern edge of the Liontown resource.

READ: Red River enhances revenue potential from Thalanga zinc operations

Red River is the only pure play zinc producer on the ASX, is free of debt and fully funded.

The first hole was drilled to test down-dip continuity of the deposit.

The 10.7 metre intersection included 0.4% copper, 1.4% lead, 5.5% zinc, 0.4 g/t gold and 13 g/t silver.

This intersection included 4.8 metres at 10.5 zinc equivalent comprising 0.5% copper, 2.1% lead, 6.3% zinc, 0.6 g/t gold and 18 g/t silver.

Up-dip continuity tested

The second hole was drilled to test the up-dip continuity.

The 23.9 zinc equivalent grade comprised 0.6% copper, 5.0% lead, 12.5% zinc, 4.2 g/t gold and & 120 g/t silver.

Another hole in progress

Another hole is in progress and has intersected 15.1 metres of massive and semi massive sulphide base metal mineralisation.

The known vertical extent of mineralisation at Liontown East is over 260 metres and known strike extent is up to 110 metres.

Red River began underground mining at the West 45 deposit in April 2017, with zinc concentrate production restarting at Thalanga in September 2017.

Planning for third mine

Production at Far West is expected by the end of 2018 and planning is underway for Waterloo which will be the third mine at Thalanga.

The company controls 420 square kilometres of land within a highly productive and prospective volcanic-hosted massive sulphide district, 65 kilometres from Charters Towers.

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Tue, 16 Jan 2018 16:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190061/red-river-resources-drills-high-grade-zinc-at-thalanga-project-190061.html
<![CDATA[News - Red River Resources' shares targeted to double according to Perth broker ]]> https://www.proactiveinvestors.com.au/companies/news/189911/red-river-resources-shares-targeted-to-double-according-to-perth-broker-189911.html Red River Resources Ltd (ASX:RVR) continues to attract broker attention as it continues to advance the Thalanga mine, while at the same time the zinc price rallies.

Broker Hartleys has a Buy Recommendation on the stock, with a 12-month price target of $0.60, which is around double the last traded price.

The following is an extract from the report.

Thalanga reaches production milestone and ramp-up

Red River Resources’ (RVR) Thalanga mill was commissioned in Sep’17 for first production of zinc, copper and lead concentrates.

The restart of the Thalanga zinc mine (100%-owned by RVR) was a major milestone for the Company, and well timed for concentrate sales into improving base metal prices.

Zinc prices, in particular remain strong and recently traded at decade high prices of ~US$1.54/lb Zn.

The restart of production at Thalanga was achieved ahead of schedule and slightly under budget (pre-production capex was ~A$17M), with the plant now ramped up to a run-rate of 325ktpa.

The mill has capacity to process ore at a rate of 650ktpa and RVR remains focused on finding more ore to increase mill utilisation while extending the mine life of the operation.

An updated reserve for West 45 and a maiden reserve for Far West have already extended mine life.

Importantly, both underground deposits remain open along strike and at depth, with further mine extensions anticipated.

Quality zinc production with significant exploration upside; Buy

RVR offers quality zinc production exposure (plus other base and precious metal credits) and has significant exploration upside from its portfolio of VMS prospects within the highly prospective Mt Windsor Belt.

We have made modest adjustments to our Thalanga model from updated reserves and resources (West 45 and Far West) which have improved our valuation.

We have a strong conviction in our Buy recommendation for RVR.

The Company is currently trading a significant discount to our updated NAV of 54cps (up from 45cps), and current spot NAV of 78cps.

Our latest 12-month price target is 60cps (up from 45cps), implies upside potential of 100%. RVR is fully funded and remains debt free (undrawn facility for US$10M) with cash (est) of A$15.6M.

Thalanga commissioned with optimised mine plan due MarQ

Recent commissioning saw the processing of 16,645t of low-med grade ore for the total production of 1,433t of concentrate.

The first delivery of zinc concentrate was made in early Oct’17, delivered to offtake partner Trafigura, who has a 3-year offtake agreement for zinc and lead concentrates.

RVR has received its first payment from the sale of zinc concentrate.

Commercial production is anticipated in early Q1 CY18.

The current mine plan is based on the mining of three high-grade deposits (West 45, Far West and Waterloo).

A maiden reserve from Far West (1.5Mt @ 12.0% ZnEq) was recently released which will update the mine plan.

Reserves for West 45 (0.6Mt @ 11.6% ZnEq) have also been updated.

The 10% increase in contained metal for the reserve is expected to extend mine life at West 45 to CY19 and provide an opportunity to increase production when the second underground mine (Far West) comes online (2H CY18).

The optimised Thalanga mine plan is also expected to be released in Q1 CY18.

Increased exploration in 2018 = Big value driver

We anticipate increased exploration expenditure in CY18.

RVR has a portfolio of high-grade deposits and targets within the Mt Windsor Belt to infill and extend to grow mine life and provide opportunities to increase plant utilisation, lifting production.

The Mt Windsor Belt remains one of the most prospective geological provinces for VMS mineralisation in Australia.

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Fri, 12 Jan 2018 09:08:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189911/red-river-resources-shares-targeted-to-double-according-to-perth-broker-189911.html
<![CDATA[News - Red River Resources appointment will enhance zinc revenue potential ]]> https://www.proactiveinvestors.com.au/companies/news/189765/red-river-resources-appointment-will-enhance-zinc-revenue-potential-189765.html Red River Resources Limited (ASX:RVR) has strengthened its management team as it focuses on enhancing the revenue potential of its Thalanga Zinc Operations in Queensland.

The company has appointed Rod Lovelady as chief financial officer.

He will replace Cameron Bodley who will remain as company secretary.

Operational experience

Lovelady brings more than 25 years of operational experience working in management, finance and commercial roles within ASX listed and unlisted mining and energy companies.

He previously worked with Mount Isa Mines, Pasminco, Zinifex, OZ Minerals, MMG, Newcrest, Sydvaranger Gruve AS (Norway), Moreton Resources and most recently AGL Energy.

READ: Red River enhances revenue potential from Thalanga zinc operations

Mel Palancian, managing director, said: “Rod’s mining experience will be a valuable addition to the Red River management team and will support the continued growth and development of the company.”

Ore reserves updated

Red River recently updated ore reserves at West 45 mine within the Thalanga operations.

The reserve increased 10% to 600,000 tonnes at 11.6% zinc equivalent with overall Thalanga reserves of 2.1 million tonnes at 11.9% zinc equivalent.

This has extended the mine life of West 45 until at least the end of 2019, which will result in simultaneous operation of West 45 and Far West mines from the end of 2018.

Red River began concentrate production at Thalanga in September 2017 and is focused on maximising returns by increasing plant throughput and extending mine life.

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Wed, 10 Jan 2018 12:11:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189765/red-river-resources-appointment-will-enhance-zinc-revenue-potential-189765.html
<![CDATA[News - Red River enhances revenue potential from Thalanga zinc operations ]]> https://www.proactiveinvestors.com.au/companies/news/189051/red-river-enhances-revenue-potential-from-thalanga-zinc-operations-189051.html Red River Resources Ltd's (ASX:RVR) updated ore reserve has extended the life of the West 45 mine within its Thalanga Zinc Operations in Central Queensland 

Extending mine life until at least the end of 2019 has potential to generate additional revenue for Red River.

The ore reserve has increased 10% to 600,000 tonnes at 11.6% zinc equivalent, taking overall Thalanga reserves to 2.1 million tonnes at 11.9% zinc equivalent.

Mill throughput will increase

The extended mine life will result in simultaneous operation of the West 45 and Far West mines from the end of 2018, increasing mill throughput.

The West 45 resource estimate has also been updated and is 600,000 tonnes at 15.4% zinc equivalent, taking Thalanga resources to 2.3 million tonnes at 15.5%.

Only ASX-listed pure zinc player

Red River is the only pure play zinc producer on the ASX, is free of debt and fully funded.

The company has a market capitalisation of A$140.1 million and has cash in hand of A$15.6 million.

READ: Red River Resources receives milestone first payment for Thalanga zinc

Mel Palancian, managing director, said: “Increasing ore reserves at West 45 combined with the recently announced maiden ore reserve at Far West is an outstanding result for the future of Red River.

“There is also the potential for further mine life extensions at depth and along strike.

“We are committed to growing resources and reserves at Thalanga and this confirms that our strategy is delivering results and mine life.

“The West 45 mine life will now extend to at least 2019 allowing the simultaneous operation of West 45 and the Far West mines in 2019, increasing mill throughput for this period.

“With exploration across our landholding in the Mt Windsor Belt in Queensland continuing in tandem to our mining operations, we hope to make new discoveries that can add further life to Thalanga.”

READ: Red River Resources attracts increased broker targets following transition to zinc producer

West 45 is the first deposit to be mined by Red River at Thalanga as part of the restart of operations at the project.

Underground mining commenced at West 45 in April 2017, with zinc concentrate production restarting ahead of schedule at Thalanga in September 2017.

An optimised life of mine plan, incorporating extended mine life and increased mill throughput, is due for release early in the first quarter of 2018.

READ: Red River Resources reveals maiden ore reserve at Thalanga Far West deposit

Production at Far West is expected by the end of 2018 and planning is underway for the Waterloo mine.

Preliminary mine design and scheduling has been completed for what will become the third mine at the Thalanga operations.

Red River controls 420 square kilometres of land within a highly productive and prospective volcanic-hosted massive sulphide district, 65 kilometres southwest of Charters Towers. 

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Wed, 20 Dec 2017 13:26:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189051/red-river-enhances-revenue-potential-from-thalanga-zinc-operations-189051.html
<![CDATA[News - Red River Resources receives increased price target from Perth broker ]]> https://www.proactiveinvestors.com.au/companies/news/187726/red-river-resources-receives-increased-price-target-from-perth-broker-187726.html Red River Resources Ltd (ASX:RVR) has been attracting some broker attention as it continues to advance its Thalanga Zinc Operation in Central Queensland.

Canaccord Genuity (Australia) Ltd maintains a speculative buy on the stock, and has increased its price target to $0.50 from $0.45. The following is an extract from the broker report.

Maiden Ore Reserve at Far West confirms mine life extension

Far West Maiden Ore Reserve exceeded our expectations:

Red River Resources (ASX: RVR) have declared a Maiden Ore Reserve of 1.5Mt at 12.0% Zn Eq as the result of an extensive 58 hole infill drilling program that took place over the last 12 months at Far West.

There is a very high degree of confidence within the resource model with over 90% now categorised as Measured or Indicated.

This has translated to conversion to Ore Reserves of over 90% against our previous estimates of 65% with grade expected to be ~12% Zn Eq. which was slightly lower than our previous estimates (14.5% Zn Eq.) to account for ore dilution and mining recovery.

The Far West System remains open at depth and to the west and hence any increase in ore can utilise the spare capacity (~40%) that exists within the 650ktpa Thalanga mill.

Mine life extensions now confirmed:

In our recent research we highlighted likely extensions to the base case mine life from Far West to five years for a total project life of seven years.

This was based on our expectations of a Maiden Ore Reserve of around 1.1Mt at 13% Zn Eq.

We have now incorporated 1.5Mt of ore from Far West, increasing overall mine life to eight years.

We expect RVR to commence development of the portal for Far West over H1’18 with first development ore ~6-9 month after.

We expect development capital of ~$7m to be comfortably funded through project cash flows.

Infrastructure that exists from previous mining and ore delineation in upper portions of the mine will assist with expediting production ramp up.

Rigs can now focus on pipeline of exploration targets:

RVR control over 420km2 of tenements within the Mt Windsor Volcanic Belt.

With infill drilling at Far West complete, four drill rigs are now engaged on high priority regional targets.

Immediate priorities include infill/extensional drilling on the Waterloo Resource (currently 0.7Mt at 19% Zn Eq.) to complement preliminary mine design and scheduling.

In addition, extensional drilling at the high grade Liontown East as well as a broader infill program of the 700m of strike towards the existing Liontown Resource (2.1Mt at 8.3% Zn Eq.) is to commence.

We view outcomes of these campaigns to form the basis of key near-term catalysts.

Valuation:

We have incorporated the increase in the Ore Reserves from Far West into our production assumptions.

Our target price moves to $0.50/sh. from $0.45/sh with this based on a NPV8% company's operating assets with a nominal valuation being ascribed to exploration assets, net of corporate and other adjustments.

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Fri, 24 Nov 2017 09:20:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187726/red-river-resources-receives-increased-price-target-from-perth-broker-187726.html
<![CDATA[News - Red River Resources reveals maiden ore reserve at Thalanga Far West deposit ]]> https://www.proactiveinvestors.com.au/companies/news/187549/red-river-resources-reveals-maiden-ore-reserve-at-thalanga-far-west-deposit-187549.html Red River Resources Ltd (ASX:RVR) has revealed a maiden ore reserve of 1.5 million tonnes at 12% zinc equivalent for its Thalanga Far West deposit in Central Queensland.

Far West is the second deposit planned to be mined at Red River’s Thalanga Zinc Operation, with the company commencing underground mining at the West 45 deposit in September.

READ NOW: Red River Resources attracts increased broker targets following transition to zinc producer

Mel Palancian, managing director, commented: “Delivering a maiden ore reserve of 1.5 million tonnes at 12% zinc equivalent for Far West is an outstanding result, with the potential for further mine life extensions at depth where Far West is still open.

“This result gives greater certainty regarding the future operational life of our Thalanga operations.

“It represents the first stage in increasing utilisation of the Thalanga Mill and extending the overall operational life of Thalanga.

“With exploration across our landholding in the Mt Windsor Belt in Queensland continuing in tandem to our mining operations, we hope to make new discoveries that can add further life to Thalanga.”

Far West history and resource upgrade highlights

Far West is an extension of the Thalanga deposit which was mined from 1990 to 1998.

The latest Infill and resource extension drilling at Far West has delivered a material increase in the geological knowledge and confidence in the area.

The Far West resource has increased to 1.7 million tonnes at 15.5% zinc equivalent, with the measured and indicated resource increasing from 0.8 million tonnes to 1.5 million tonnes (100% increase).

This includes a 137% increase in contained metal (measured and indicated) from 101,000 tonnes zinc equivalent to 240,000 tonnes zinc equivalent.

Next steps

Red River has completed mine design and scheduling work at Far West, targeting ore production in 2H CY2018.

Early stage development activities and permitting have commenced in preparation for mining.

Red River is focused on maximising returns from the Thalanga Zinc Operation by increasing plant throughput and extending mine life by further exploring the deposits within the mine plan.

The company is well funded with a cash balance of $15.6 million as at 30 September 2016.

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Tue, 21 Nov 2017 15:13:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187549/red-river-resources-reveals-maiden-ore-reserve-at-thalanga-far-west-deposit-187549.html
<![CDATA[News - Red River Resources receives milestone first payment for Thalanga zinc ]]> https://www.proactiveinvestors.com.au/companies/news/186979/red-river-resources-receives-milestone-first-payment-for-thalanga-zinc-186979.html Red River Resources Ltd (ASX:RVR) has now received the first payment for the sale of zinc concentrate from the Thalanga Mine, located in Central Queensland.

The payment marks the commencement of strong ongoing cash flow from the project.

Zinc and lead concentrates from Thalanga are sold under an offtake agreement to Trafigura Pte Ltd.

The off-take is in respect of 122,000 dry metric tonnes of zinc concentrate and 27,400 dry metric tonnes of lead concentrate, with pricing being determined by reference to the applicable metal prices on the London Metal Exchange at the time of shipment.

The concentrate tonnage is expected to be shipped in the first 36 months following commencement of commercial production.

The broker community has also been watching the stock closely.

READ NOW: Red River attracts increased broker targets following transition to zinc producer ]]>
Thu, 09 Nov 2017 12:54:00 +1100 https://www.proactiveinvestors.com.au/companies/news/186979/red-river-resources-receives-milestone-first-payment-for-thalanga-zinc-186979.html
<![CDATA[News - Red River Resources attracts increased broker targets following transition to zinc producer ]]> https://www.proactiveinvestors.com.au/companies/news/186696/red-river-resources-attracts-increased-broker-targets-following-transition-to-zinc-producer-186696.html Red River Resources Ltd (ASX:RVR) has received increased price targets from two Australian brokers.

Baillieu Holst and Canaccord Genuity (Australia) both have speculative buy recommendations on Red River, and their price targets have been lifted.

Baillieu now targets $0.51, with Canaccord $0.45. Following are extracts from the reports.

Ore in the mill: Baillieu

Production and sales start at Thalanga: The Thalanga mill was fully commissioned in the September Quarter and processed low to medium grade ore at a rate of 325ktpa with treated ore at only 16.6kt.

Zinc concentrate production started on 8th September with a total of 1,433t of concentrate produced and RVR’s first shipment of 150t of Zinc concentrate on 11th October.

We were positively surprised by the ramp-up and the rate achieved.

The first stope was fired at the West 45 underground mine on 8th September with this ore feeding the mill in the December Quarter and beyond. RVR finished the quarter with $15.5m in cash and no debt.

Investment view: As discussed in our Initiation (17 October) we assume that the restart plan being followed by the company is only an interim option and will be superseded by the development of a longer life development of more than three orebodies.

Our modelling indicates that the orebody developments can maintain 300-450ktpa of treatments without having to resort to an additional equity funding.

We maintain our BUY recommendation and increase our price target to 51cps in line with our valuation. 

Zinc Production underway, increasing reserves next: Canaccord

RVR has transitioned to first production at Thalanga under time and budget validating the strong operating credentials and credibility of management.

First concentrate sales have commenced at an ideal time for RVR with the Zinc price maintaining multi-year highs as a result of continued tightness in the concentrate market.

We expect this to assist in immediate FCF generation and combined with a healthy balance sheet ($15.6m cash, no debt), ideally positions RVR to increase attention towards near mine extensions and testing more regional exploration targets.

Following an update to our production assumptions we have increased our price target to $0.45/share (from $0.35/sh,) and maintain our SPEC BUY rating.

Valuation: As a result of a model roll forward and refining our production assumptions our target price moves to $0.45/share.

This is based on a NPV8% for the company's operating assets with a nominal valuation being ascribed to exploration assets, net of corporate and other adjustments.

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Fri, 03 Nov 2017 10:48:00 +1100 https://www.proactiveinvestors.com.au/companies/news/186696/red-river-resources-attracts-increased-broker-targets-following-transition-to-zinc-producer-186696.html
<![CDATA[News - Red River Resources gains Tribeca as substantial shareholder ]]> https://www.proactiveinvestors.com.au/companies/news/186674/red-river-resources-gains-tribeca-as-substantial-shareholder-186674.html Red River Resources (ASX:RVR) has added Tribeca Investment Partners to its substantial shareholder list.

The well-known Australian fund manager revealed it holds 24.64 million shares giving it a 5.14% stake in the emerging zinc miner.

Red River is a zinc producer through its key asset, the Thalanga Zinc Project located in central Queensland.

The company commenced concentrate production at the Thalanga Zinc Project in September 2017.

READ NOW: Red River Resources delivers first zinc concentrate

Red River also this week raised $231,435 through the exercise of 1 million options exercisable at $0.10 and 876,238 options exercisable at $0.15.

The new funds will be used for working capital, capital works, mine development and exploration.

Red River finished the September quarter with a strong cash balance of $15.6 million.

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Fri, 03 Nov 2017 07:04:00 +1100 https://www.proactiveinvestors.com.au/companies/news/186674/red-river-resources-gains-tribeca-as-substantial-shareholder-186674.html
<![CDATA[News - Red River Resources drills more high-grade zinc while it holds mantle as Australia’s newest producer ]]> https://www.proactiveinvestors.com.au/companies/news/186228/red-river-resources-drills-more-high-grade-zinc-while-it-holds-mantle-as-australias-newest-producer-186228.html Red River Resources Limited (ASX:RVR) has intersected high-grade zinc from a diamond drill hole at the Liontown East target, within its Thalanga Zinc Project in central Queensland.

The hole was drilled to test the down dip continuity of the Liontown East discovery, which is located circa 700 metres from the eastern edge of the current Liontown resource.

Importantly, the drill hole intersected a broad zone of massive and semi-massive sulphide mineralisation from 617.4 metres to 630.3 metres down-hole.

Red River intersected 9.3 metres at 10.3% zinc equivalent (1.1% copper, 0.9% lead, 5.3% zinc, 0.5 g/t gold & 15 g/t silver) from 620.8 metres including 2.35 metres at 18.9% zinc equivalent from 625 metres.

The results from this hole represent a material extension to the known Liontown East mineralisation.

A new drill hole is in progress and is at 480 metres depth as on 25 October.

Earlier this month, the company completed the first delivery of zinc concentrate from the Thalanga Mine, Australia’s newest zinc mine.

READ NEXT: Red River Resources delivers first zinc concentrate

The delivery comes one month after the commencement of processing and at a period in time when the zinc price is trading at 10-year highs of US$1.50 per pound.

Red River is now working to build its resource inventory to utilise the 650,000 tonnes per annum capacity of the Thalanga mill.

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Thu, 26 Oct 2017 11:12:00 +1100 https://www.proactiveinvestors.com.au/companies/news/186228/red-river-resources-drills-more-high-grade-zinc-while-it-holds-mantle-as-australias-newest-producer-186228.html
<![CDATA[News - Red River Resources receives initial drill results from Waterloo ]]> https://www.proactiveinvestors.com.au/companies/news/186153/red-river-resources-receives-initial-drill-results-from-waterloo-186153.html Red River Resources (ASX:RVR) has received initial results from its drilling program at the Waterloo polymetallic massive sulphide deposit within the Thalanga Zinc Project in Queensland.

Assays have been received from three holes of the 12-hole infill and extension diamond drill program, which remains ongoing.

Results feature 35.91 metres at 12.6% zinc equivalent from 259 metres down hole.

Drill results will be used in the maiden Waterloo Ore Reserve estimate, expected to be completed in the June half of 2018.

Waterloo, Red River’s highest grade deposit, is currently scheduled to be the third deposit mined at the Thalanga Zinc Project, which commenced concentrate production in September 2017.

Drill results details

Assay results were received for drill holes WL01, WL06 and WL07.

Significant intersections include:

- WL01 intersected 9.4 metres at 9.5% zinc equivalent (0.9% copper, 1.7% lead, 8.8% zinc, 0.6 g/t gold and 36 g/t silver) from 100.6 metres down hole;
- WL06 intersected 35.91 metres at 12.6% zinc equivalent (1.7% copper, 1.0% lead, 4.9% zinc, 0.5 g/t gold and 39 g/t silver) from 259.09 metres down hole; and
- WL07 intersected 2.36 metres at 10.1% zinc equivalent (1.1% copper, 0.3% lead, 5.6% zinc, 0.4 g/t gold and 19 g/t silver) from 288.94 metres down hole.

WL11 has been completed and submitted for assay, with WL12 in progress.

Waterloo is Red River’s highest grade deposit with a current JORC resource estimate of 707,000 tonnes grading 19.1% zinc equivalent.

READ NOW: Red River rated a Buy from Melbourne-broker as zinc production returns to Thalanga

Red River is a zinc producer through its key asset, the Thalanga Zinc Project located in central Queensland.

The company commenced concentrate production at the Thalanga Zinc Project in September 2017.

Earlier this month, Red River completed the first delivery of zinc concentrate from its Thalanga Mine.

READ NOW: Red River Resources delivers first zinc concentrate ]]>
Wed, 25 Oct 2017 14:47:00 +1100 https://www.proactiveinvestors.com.au/companies/news/186153/red-river-resources-receives-initial-drill-results-from-waterloo-186153.html
<![CDATA[News - Red River rated a Buy from Melbourne-broker as zinc production returns to Thalanga ]]> https://www.proactiveinvestors.com.au/companies/news/185912/red-river-rated-a-buy-from-melbourne-broker-as-zinc-production-returns-to-thalanga-185912.html Red River Resources Ltd (ASX:RVR) has received a Buy recommendation with a risk rating of Speculative from Melbourne-based broker Baillieu Holst, following production returning to Thalanga.

Baillieu has a price target of $0.46, which is a 40% premium to the last traded price of $0.33. The following is an extract from the report.

Overview:

RVR is redeveloping the Thalanga zinc mine in North Queensland.

The processing plant has been refurbished, the West 45 mine has been dewatered and stopes have been mined.

The first concentrate was produced on 8 September 2017. The operations will produce three concentrates, being zinc, copper and lead, with 52% of the revenue derived from zinc.

We assume that the production profile is modified from the restart study, which the company used to justify development, and is extended from five years to 10+ years and incorporates additional resources and deposits.

Key Drivers:

1) low capex restart and no debt allow operating cash flow to be reinvested in the operations;
2) near surface exploration success at West 45;
3) regional exploration success to allow optimisation of mill feed;
4) initial processing rates of 300-450ktpa allow for an increase to 650ktpa as more ore is delineated;
5) operating cost reductions relative to our forecasts; and
6) a stronger for longer zinc price.

Outlook:

In our view, RVR’s restart plan outlined in 2015 will undergo a significant amount of optimisation and modification over the next 12 months.

Ongoing exploration and resource drill out will increase resource above and below the current West 45 mine plan and also add to the overall inventory at Thalanga Far West, Waterloo and Liontown amongst others.

The restart plan was based on part of the 2015 resource base which yields a positive NPV, but also leads to a decline in earnings between 2019 and 2021 based on our forecasts.

We have used the restart plan as a starting point for our modelling, but heavily modified it to include recent drilling and development of the Liontown and Orient deposits which were left out of the restart study.

This results in a 10-year mine life with the mill running at an average rate of 350ktpa rather than the restart study which had a 5.25year life at an average treatment rate of 324ktpa.

We believe there is scope to increase production rates and the mine life, with the only significant cost being mine development.

Investment view:

RVR has no debt, ~A$20m in cash and an undrawn working capital facility of US$10m.

It is well placed to deliver on our forecasts, or a version approaching them, rather than the conservative restart study used to justify the redevelopment.

We are initiating coverage with a BUY call, Speculative rating and a price target of $0.46ps.

The Speculative rating will be reviewed upon evidence of material commercialisation.

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Fri, 20 Oct 2017 09:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/185912/red-river-rated-a-buy-from-melbourne-broker-as-zinc-production-returns-to-thalanga-185912.html
<![CDATA[News - Red River Resources delivers first zinc concentrate ]]> https://www.proactiveinvestors.com.au/companies/news/185378/red-river-resources-delivers-first-zinc-concentrate-185378.html Red River Resources (ASX:RVR) has completed the first delivery of zinc concentrate from its Thalanga Mine, Australia’s newest zinc mine located in central Queensland.

The delivery comes one month after the commencement of processing and at a period in time when the zinc price is trading at 10-year highs of US$1.50 per pound.

The first two loads of zinc concentrate are being delivered to a storage facility in Townsville, from where they will be sold to Trafigura Pte Ltd as per the existing concentrate offtake agreement.

The agreement’s rapid payment terms will provide imminent cash flow for Red River who currently has no debt and $15.6 million cash at bank.

Mel Palancian, managing director, commented: “Red River has no debt and a cash balance of $15.6 million at the end of September, so our ability to generate an income from concentrate will help fund exploration across our portfolio as we aim to find the next generation of deposits in the Mt Windsor Belt and further increase our resource inventory.”

Further concentrate deliveries near

The first two loads of zinc concentrate measuring circa 150 tonnes left site on 10 October for delivery to a storage facility in Townsville.

Red River will shortly make its first lead concentrate delivery from Thalanga also to Trafigura and copper concentrate is to follow.

The first delivery of zinc concentrate from Thalanga comes ahead of schedule and under budget.

This delivery marks the commencement of continuous deliveries of zinc concentrate.

Background

Red River is a zinc producer through its key asset, the Thalanga Zinc Project located in central Queensland.

The company commenced concentrate production at the Thalanga Zinc Project in September 2017.

Red River is focused on maximising returns from the project by increasing plant throughput and extending mine life through:

- Increasing Mineral Resources and Ore Reserves at deposits currently in the mine plan (West 45, Thalanga Far West and Waterloo);
- Converting Mineral Resources into Ore Reserves at Liontown and Orient; and
- Continuing to aggressively explore our growing pipeline of high-quality targets within the surrounding area.


READ NOW: Red River eyes potential to grow zinc resources at Thalanga ]]>
Wed, 11 Oct 2017 14:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/185378/red-river-resources-delivers-first-zinc-concentrate-185378.html