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.