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New high-grade drill results are building confidence in Red River Resources’ Liontown deposit, set to become the third mine developed as part of its Thalanga operations.

Red River has submitted a mining lease application for Liontown and is preparing an Environmental Authority application, expected to be submitted in October.

Meanwhile an ongoing multi-target RC drilling program is delivering high-grade polymetallic results at the North Queensland project.

Significant intercepts include 8m grading at 11.74 g/t gold, 0.85 per cent copper, 0.3 per cent lead, 0.8 per cent zinc and 6.74 g/t silver (27.5 per cent zinc equivalent) at the Gap Lode.

Results from the New Queen oxide zone include 140m at 4.12 g/t gold, 0.12 per cent copper, 2.98 per cent lead, 4.95 per cent zinc and 81.91 g/t silver.

Red River said drilling at Liontown for the next year would focus on delineation, resource extensions and satellite targets.

The project is located about 32km in a direct line from the main Thalanga operations, about 65km south-west of Charters Towers, where Red River restarted mining and processing operations in 2017.

The Liontown project has a polymetallic sulphide mineral resource that stands at 4.1Mt at 0.6 per cent copper, 1.9 per cent lead, 5.9 per cent zinc, 1.1 g/t gold and 29 g/t silver and a shallow oxide gold mineral resource of 113,000 tonnes grading at 1.9g/t gold and 24 g/t silver.

Production from the Liontown sulphide mineral resource will be trucked to the processing plant at Thalanga.

Red River is also evaluating a processing plan for the oxide gold from Liontown. This will require metallurgical testwork to develop the appropriate flowsheet.

The company said last year that it was focusing on a combined open pit and underground development with a conceptual mine life of more than 10 years.