Red River Resources Ltd (ASX:RVR) (FRA:R1R) has increased the gold resource at Hillgrove Gold-Antimony Project in northern New South Wales by 46% to 668,000 ounces as it prepares to begin production by the end of the year.
The increase is a result of an updated JORC 2012-compliant mineral resource estimate for the Blacklode and Sunlight lode prospects which now have a resource of 2.65 million tonnes at 4.5 g/t gold and 1.1% antimony for 387,000 ounces of gold and 30,000 tonnes of antimony.
The Hillgrove project JORC resource has been increased to 4.75 million tonnes at 4.4 g/t gold and 1.6% antimony, or 6.6 g/t gold equivalent, for 668,000 ounces of contained gold and 74,000 tonnes of contained antimony.
On track for restart
Red River is on track to restart gold production at Hillgrove by late 2020 with initial production from the Bakers Creek stockpile before resuming underground operations in mid to late 2021.
Shares have edged higher by more than 3.5% to 14.5 cents.
Blacklode and Sunlight Lode JORC
Red River has updated the JORC 2004-compliant Blacklode mineral resource and remodelled the JORC 2012 Sunlight mineral resource.
Preliminary mining investigations indicate that grades of 3 g/t gold equivalent within the Blacklode and Sunlight resource areas may have the potential to be economic in the medium term and ore reserve calculations will be carried out on the indicated resources.
Blacklode is defined over a 1-kilometre east-west striking shear structure. It occurs as a cross-linking, ductile shear in an area of predominately northwest extensional shears.
The deposit contains east plunging shoots of high antimony and gold mineralisation.
Ten lesser sub-parallel or splaying lodes adjacent to the main shear are included in the Blacklode mineral resource.
The Sunlight Lode occurs as a major splay away from the Blacklode structure. It splays to the southeast as generally two parallel shear/breccia lodes.
The structure has been subjected to multiple hydrothermal fluid events and structural reactivation.
An initial phase of pervasive sericite-silica alteration has been overprinted with a broader ductile event consistent with the quartz-arsenopyrite-pyrite-gold phase, resulting in a wider zone of quartz stringer/individual veining to quartz breccias with disseminated refractory gold.
Later reactivation causing narrow (up to 2 metres wide) of brittle deformation has produced distinct hanging wall and footwall breccias with high-grade particle (free) gold.
These breccias are continuous along strike and depth, potentially joining in a combined breccia zone on the western end of the lode.
Metz Mining Centre
The Metz Mining Centre at Hillgrove is on active care and maintenance, with all infrastructure (ventilation, power, water) in place to support near-term restart of mining.
Previous owners had invested significant capital in the development of the mining centre, with about 3,950 metres of declines and capital development, 3,400 metres of ore drives in the Syndicate Lode, 500 metres of ore drives in Blacklode and 320 metres of ore drives in Cox’s Lode.
Hillgrove also has a substantial remaining JORC 2004-compliant resource, which Red River is systematically converting to a JORC 2012-compliant resource.
The Hillgrove Mineral Field covers approximately 9 kilometres by 6 kilometres with more than 200 individual mineral occurrences identified in field.
Red River, which acquired the project in August 2019 from a private vendor, controls the entire Hillgrove Mineral Field and holds 225 square kilometres of exploration leases and 17 square kilometres of mining leases (or equivalent).
The vendor had placed the Hillgrove project in care & maintenance at the end of 2014 due to low commodity prices.