The decision follows assays from drilling at Liontown that delivered further high-grade gold results from New Queen Lens while high-grade copper-gold mineralisation was intersected in the Carrington Lode.
Red River managing director Mel Palancian said: “Given the results from Liontown, in particular the New Queens Lens in 2019 drilling, there is a strong rationale for fast-tracking Liontown’s development as our next priority.
“We previously planned to develop Waterloo as the third deposit at Thalanga, but the discovery of the Liontown East deposit and the New Queen drilling results show that Liontown is a much larger mineralised system and its still open along strike and depth.”
The zinc-rich Waterloo deposit will be placed on hold while the company focusses on developing Liontown.
New Queen Lens results
Assay results at New Queens to date have returned wide intercepts of high-grade polymetallic fresh sulphide mineralisation with material precious metals, particularly gold, from within 30 metres of the surface.
Drill hole LTDD19036 intersected 18.35 metres at 9.0% zinc equivalent from 48.65 metres down-hole, including an intercept of 1.1 metres at 0.5% copper, 13.7% lead, 29.6% zinc, 9.8 g/t gold and 371 g/t gold (57.9% zinc equivalent) within 4.20 metres at 23.6% zinc equivalent from 53.10 metres down-hole.
Drilling at the copper-gold rich Carrington Lode returned intersections including:
- 11.35 metres at 3.1% copper and 0.9 g/t gold including 4.65 metres 5.5% copper at 2.1 g/t gold from 188 metres down-hole, and
- 5.60 metres at 2.1% copper and 7.5 g/t gold from 99.70 metres down-hole including 2.50 metres at 1.7% copper and 13.5g/t gold from 102.80 metres down-hole
Updating the resource
With the completion of the current drilling program, Red River is working to update the mineral resource for the project, which is expected to be completed in March 2020.
Palancian said: “We are finalising a mineral resource update and mine planning for the deposit.”
“Prioritising the development of Liontown will allow us to increase production of gold and copper at Thalanga while we continue restart studies for the Hillgrove Gold Project in New South Wales.
With the Waterloo deposit on hold, the company will now focus on developing Liontown, increasing mill throughput at Thalanga as well as gold and silver production.