Red River Resources Ltd. (ASX:RVR) announced the completion of the first delivery of zinc concentrate from its Queensland-based Thalanga mine. The mine began concentrate production on September 8, 2017.
As quoted in the press release:
The first two loads of zinc concentrate (approximately 150 tonnes) left site on 10 October for delivery to a storage facility in Townsville. The concentrate will be sold to Trafigura Pte Ltd under the terms of Red River’s existing concentrate offtake agreement. Red River will shortly make its first lead concentrate delivery from Thalanga also to Trafigura.
Red River enjoys fast payment terms pursuant to the offtake agreements, enabling strong working capital for the Company.
Mel Palancian, managing director of Red River, commented:
It is very pleasing to have achieved our first deliveries of zinc concentrate from Thalanga after commencing production at the project last month, ahead of schedule and under budget. I’m really proud of what our team has achieved in a safe and professional manner and look forward to growing the business.
Red River has no debt and a cash balance of $15.6m at the end of September, so our ability to generate an income from concentrate will help fund exploration across our portfolio as we aim to find the next generation of deposits in the Mt Windsor Belt and further increase our resource inventory.