Red River ended the quarter in a secure position, settling the Thalanga royalty dispute and achieving ASX producer status on the back of strong quarterly production.
Red River Resources Limited (ASX: RVR) has been granted ASX Producing Mining Entity classification following continued strong production figures from the company’s Thalanga base metals operation and project progress Hillgrove gold in production.
During the last quarter, RVR settled a royalty dispute for Thalanga, approved the resumption of underground mining of the Syndicate deposit in the Hillgrove project and received strong assay results from the Liontown Gap Lode and Hillgrove hubs Sunlight and Eleanora-Garibaldi.
Quarter in numbers
Red River’s net income was $25.5 million for the quarter, including $23.7 million from Thalanga operations and $1.8 million from the Hillgrove gold mine.
The company has a healthy cash balance of $13.2 million, as well as financial assets of $18.3 million as of December 31, 2021.
More than $22 million has been spent on capital and project development, exploration activities and legal litigation during this period, of which $15 million – spent during the Thalanga royalty dispute – will be repaid to the company’s working capital in quarterly installments of $2 million. .
The Thalanga mine continued to deliver during the quarter, producing 4,697 dry metric tons (DMT) of zinc concentrate, 1,100 DMT of lead concentrate and 1,996 DMT of copper concentrate.
December production improved from October and November levels, although it broke its quarterly production records in mid-October.
Read: Red River Resources achieves record quarterly copper production at Thalanga and advances approvals for new Hillgrove resource
Additional ground control installation requirements are currently being met at Thalanga, which RVR says will further improve production for this next quarter.
Drilling continues at the nearby Liontown deposit, with seven diamond drill holes completed over 2,379 metres. Analyzes are pending for these samples.
Planning for the restart of underground mining at the Hillgrove Gold Project is still underway.
Negotiations with several mining contractors are at an advanced stage, even as drilling continues on the project.
Eight additional diamond drill holes were completed at the Sunlight, Eleanora-Garibaldi and Freehold hubs from which assays are also still pending.
About Red River Resources
Red River Resources seeks to build a multi-asset mining business focused on base and precious metals with the goal of achieving prosperity through resource development.
The company’s core asset is the base metals operation Thalanga in Queensland, which was acquired in 2014 and began producing copper, lead and zinc concentrate in September 2017.
Red River has also commenced production from the high-grade Hillgrove gold operation in New South Wales, which was acquired in 2019 and is also a key part of its strategy to build a multi-asset focused mining business. on base and precious metals.