Red River Resources Ltd (ASX:RVR) recently made a new zinc discovery at the Liontown East target, within the Thalanga Zinc Project in Queensland.
The discovery was the first zinc rich massive sulphide intersection outside a known deposit since West 45 and Orient were discovered in 1996/1997.
The significance of the results doubled Red Rivers share price over the past fortnight to $0.25.
To build on this momentum, the company has mobilised an additional diamond drill rig to accelerate exploration and development.
Red River has now commenced drilling TH677, a 500 metre-deep hole designed to test the Portal IP Target identified during the high-powered Dipole-Dipole Induced Polarisation (IP) survey in 2015.
The Portal IP Target represents a previously untested, discrete, highly chargeable, moderately conductive linear feature, located 100 metres north of the West 45 underground portal.
TH677 is expected to take three weeks to complete.
Next steps
After receiving results from TH677, Red River will commence an infill drilling program at Upper Far West.
The Upper Far West infill drilling program will initially consist of 15 diamond drill holes for a total length of 4,000 metres and is expected to take four months to complete.
Mel Palancian, managing director, commented:
“The additional drill rig allows us to test the priority Portal IP target before commencing the Upper Far West infill drilling program, whilst retaining a strong focus on the new discovery at Liontown East.
“We now have two diamond drill rigs active on site – one to test the priority Portal IP target before commencing the Far West infill drilling program, and the second rig focused on our high impact exploration program, currently drilling at Liontown East.
“This marks the beginning of an exciting phase for Red River, as we start to move Thalanga back into production and increase our efforts to discover the next ore body within the Mt Windsor Belt.”
Recent discovery
– 7.5 metre zone of massive and semi massive sulphide mineralisation from a 452.7 metre down-hole; and
– 10.35 metre zone of semi massive sulphide mineralisation from a 472.65 metre down-hole.
Assays are pending.
Production potential
It will take only 6 months from a final investment decision to bring Thalanga into commercial production, the shortest time period to production of ASX listed zinc stocks.
Thalanga has a low operating cost, a low pre-production capital cost of $17.2 million.
Annual average production is 21,400 tonnes of zinc, 3,600 tonnes of copper, 5,000 tonnes of lead, 2,000 ounces of gold and 370,000 ounces of silver in concentrate, over the initial mine life of five years, with potential to extend the initial mine life.
Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.