Assays from six holes have been received as part of the Far West infill and extensional drilling program.
Significant mineralisation was identified in four of the six holes.
Furthermore, assays are pending for two completed holes that intersected zones of massive and semi-massive sulphide mineralisation.
Mel Palancian, managing director, commented: “The Far West Infill program continuing to deliver good results, demonstrating the potential of the deposit as well as the Thalanga system for additional discoveries of high-grade polymetallic mineralisation.”
Drill result details
Red River has received assay results for TH688, TH689, TH690, TH691, TH693 and TH694 from the ongoing Far West infill and resource extension drilling program.
- TH690: 1.15 metres at 21.4% zinc equivalent or 2.7% copper, 1.4% lead, 9.7% zinc, 0.4 g/t gold and 59 g/t silver from 316.0 metres;
- TH691: 1.7 metres at 26.9% zinc equivalent or 1.3% copper, 5.5% lead, 13.9% zinc, 0.7 g/t gold and 136 g/t silver from 331.05 metres;
- TH693: 2.7 metres at 25.3% zinc equivalent or 3.1% copper, 3.2% lead, 7.7% zinc, 0.4 g/t gold and 167 g/t silver from 339.1 metres; and
- TH694: 2.05 metres at 42.5% zinc equivalent or 7.6% copper, 3.8% lead, 9.3% zinc, 1.2 g/t gold and 161 g/t silver from 188.8 metres.
No significant mineralisation was intercepted in TH688 and TH689.
Drill holes TH695 and TH697 have successfully intersected zones of massive and semi-massive sulphide mineralisation with drilling of TH698 in progress.
Thalanga has a low operating cost, a low pre-production capital cost of $17.2 million and a short timeline to production.
Annual average production is 21,400 tonnes of zinc, 3,600 tonnes of copper, 5,000 tonnes of lead, 2,000 ounces of gold and 370,000 ounces of silver in concentrate, over the initial mine life of five years, with potential to extend the initial mine life.
Red River has already tapped into this potential by recently increasing the Far West resource at the Thalanga Zinc Project by 42% to 1.6 million tonnes at 14.9% zinc equivalent.
The Thalanga Zinc Project Restart is based on mining three deposits, West 45, Far West and Waterloo.
The proceeds of the recent $30 million placement will be used to accelerate the development of West 45, finalise the design and commence initial development of Far West and also commence activities at Waterloo.
Red River commenced refurbishment works at the 650,000 tonnes per annum Thalanga processing plant during November.
The latest assays from the Far West drill program continue to demonstrate the high grade nature of mineralisation in and around the Far West deposit.
Thalanga Far West will be the second deposit mined after West 45, with production at Thalanga expected to commence in the second half of 2017.
Mine development is significantly advanced at West 45.
With assays from further holes pending and drilling still in progress, Red River remains leveraged to news flow.
Red River is fully funded to aggressively continue its infill drilling and Thalanga high impact exploration program.
Shares have more than doubled year to date, currently trading at $0.20.
With the recently secured $30 million, the restart of Thalanga is already fully funded.
Red River will immediately begin to increase restart activities at Thalanga, building on the current team undertaking refurbishment activities at the Thalanga processing plant.
- Finalise management team: Q1 2017;
- Concentrate offtake agreement: Q1 2017;
- Appointment of mining contractor: Q1 2017;
- Mobilisation of plant refurbishment contractors: Q1 2017;
- Plant refurbishment completed: Q3 2017; and
- Commencement of production: 2H 2017.