Red River Completes Restart Study for Thalanga Zinc Project

Red River Resources Ltd. (ASX:RVR) announced the completion of the restart study for its Queensland-based Thalanga zinc project. The study looks at a production restart at the Thalanga processing plant, which is currently on care and maintenance.
Highlights are as follows:

• Highly attractive Project with low operating risk, capital cost and operating cost
• LOM revenue of $628 million, NPV(8% real) of $84m, IRR of 61% and with strong LOM average free cash flow of $25 million per annum
• Estimated life of mine average C1 cash cost of US$0.18/lb payable Zn (after by-product credits)
• Pre-production capital cost of $17.7 million
• Short timeline to re-start of production (6 months)
• Annual average production of 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
• Mining Inventory of 1.7Mt @ 1.4% Cu, 2.1% Pb, 7.5%Zn, 0.5g/t Au & 54g/t Ag (15.2% ZnEq)
• Initial project life in excess of 5 years, with outstanding extension potential
• Project parameters may be greatly enhanced by exploration success at the Far West Deposit
• Substantial upside exists for extended mine life and/or increased production rate from known exploration potential – high impact exploration program planned

Mel Palancian, managing director of Red River, commented:

We are exceptionally pleased with the outcomes of the Study, which clearly demonstrates that the Project will become an outstanding zinc and base metals mine. In this macroeconomic environment, the low risk, low cost nature of the Project is a significant competitive advantage for Red River.
It’s important to note the very significant upside from the potential delineation of further resources at Far West as well as a number of other deposits and high grade exploration targets. We look forward to the further advancement of the Project and to the realisation of our vision of building a leading zinc and base metals production company.

Click here to read the full Red River Resources Ltd. (ASX:RVR) press release.