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

West 45 is one of three deposits at the Thalanga zinc operation in North Queensland.
mining vehicle exiting underground mine portal
The portal at West 45 underground mine

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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