Red River moves towards Liontown start
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.
Red River expects to develop a combined open pit and underground development with a conceptual mine life of more than 10 years.
In a company update this week, it said it had submitted the EA for the project and was progressing it as quickly as possible, with plans for mining to commence next year.
Red River has installed and is commissioning a Falcon gravity gold recovery circuit at Thalanga to increase recovery of gold, particularly when it commences mining at Liontown.
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.
It also hosts and a shallow oxide gold mineral resource of 113,000 tonnes grading at 1.9g/t gold and 24 g/t silver.
Red River also reported that less ore had been milled at Thalanga in the past quarter than usual due to increased ground control requirements at the Far West underground mine, particularly cable bolting and shotcrete.
“Red River’s mining contractor Pybar has committed to providing additional resources at Far West to minimise the impact,” the company stated.
“Red River expects normal production rates will resume in Q3 FY2022, after the company achieved record quarterly copper concentrate production of 4,411 tonnes at Thalanga, as well as solid increases in production of zinc and lead concentrates in Q1 FY2022.”
Red River loses appeal in royalty dispute
Meanwhile the company has lost an appeal in its royalty dispute with Vedanta Resources subsidiary Thalanga Copper Mines.
The proceedings related to a liability it inherited when it acquired the Thalanga project in 2014.
Red River said the judgement sum was about $20 million, payable within 28 days, and it had already placed $10 million in a trust account (from existing cash), with the Board to determine how it would finance the remainder from existing resources.
Red River maintains an undrawn $US15 million debt facility with Trafigura which may be used for this purpose.
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