Red River Resources Ltd’s (ASX:RVR) (FRA:R1R) reconnaissance sampling from Orient prospect at Herberton in north Queensland has confirmed the presence of high-grade silver along with indium, lead and zinc mineralisation.
The East Orient sampling returned assays up to 1,365 g/t silver, 444 g/t indium, 25.8% lead and 18.7% zinc while the West Orient sampling returned assays up to 1,730 g/t silver, 356 g/t indium, 39.1% lead and 32.1% zinc.
Shares have been as much as 9% higher to 15.2 cents and since the close at 4.2 cents on March 23 have been climbing.
Under the Collaborative Exploration Initiative (Round 4), the Queensland Government’s Department of Natural Resource, Mines and Energy has awarded Red River a $190,000 grant to undertake surveys to target extensions to known silver-indium mineralisation at the Orient prospect.
Red River plans to begin a high-resolution airborne drone magnetic survey and a targeted induced polarisation survey shortly.
Results from these geophysical surveys will be used to plan a drilling program targeting extensions to the known high grade silver-indium rich vein systems.
Orient prospect sampling
Red River collected 24 samples during the initial reconnaissance visit. Eight (OERX001 to OERX008) were collected from a variety of material from the Nannum Consolidated mullock dumps and eight (OERX009 to OERX016) from mullock dumps and outcrops at a number of different workings along the Orient East Lode.
A further eight samples (OWRX001 to OWRX008) were collected from a number of mullock dumps along the line of workings at West Orient.
Samples OWRX004 to 006 were from mullock at Watsons Tunnel and samples OWRX007 & 008 were from the main mine and working area (Weinerts).
The Orient Project (EPM 27223) consists of the West Orient zinc-lead-silver-indium deposit and the East Orient exploration target.
Located 9 kilometres north of Irvinebank in Northern Queensland, the lead-zinc-silver-indium mineralisation is believed to represent part of an epithermal precious metals system.
The Orient vein and stockwork mineralisation are associated with a strongly faulted and deeply fractured zone near the margin of a major caldera subsidence structure.
Silver prices have been on the rise, up almost 60% over the past three weeks, according to Kitco. In its report, it noted that silver prices are “showing signs of some value with their consolidation action and ability to stand up to weakness in gold and palladium".
Silver is currently trading at around US$28.40 per ounce.
Red River’s foundation asset is the Thalanga Base Metal Operation in Northern Queensland, which was acquired in 2014 and where copper, lead and zinc concentrate production commenced in September 2017.
The company recently acquired the high-grade Hillgrove Gold Project in New South Wales, which will enable Red River to build a multi-asset operating business focused on base and precious metals.
Gold production at Hillgrove is scheduled to restart at the end of 2020.