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.
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.