Red River Resources (ASX:RVR) has reported some high-grade assay results as part of the drill program at the Liontown East project, which is an integral part of the Thalanga Zinc project.
Hole 05W1 returned a pretty spectacular result of 6.1 meters containing 14.1% zinc, 7% lead, 0.7% copper, 1 g/t gold and 51 g/t silver (24.4% Zinc-Equivalent) within a longer interval of 18.1 meters containing 11.5% ZnEq. These assay results definitely confirm the potential of Liontown East, which could then be incorporated in the mine plan for Thalanga. Red River also released high-grade drill results from Thalanga Far West, where it’s completing an infill drill program. This infill drill program will allow Red River to release an updated resource estimate later this year.
According to a 2015 economic study, Red River expects to bring Thalanga back into production for just A$17.2M which should allow the company to produce approximately 45 million pounds of zinc, 8 million pounds of copper, 11 million pounds of lead and 370,000 ounces of silver per year. The mix of end-products is actually quite appealing as Red River will be able to benefit from strong commodity prices in both the base metals and precious metals segment.