Red River Resources (RVR.AX) has announced it has signed an offtake agreement with Glencore for the gold concentrate that will be produced on its Hillgrove gold mine in NSW. While the mine will also produce doré gold, the Bakers Creek stockpile will produce a gold concentrate which will now be marketed by Glencore. Hardly a surprise as Red River and Glencore already have an offtake relationship at the Thalanga Base Metal operations.
While the Q2 production results for both mines still have to be reported, Thalanga produced just under 7,000 tonnes of zinc concentrate at 53.4% zinc, 1,600 tonnes of lead concentrate with an average grade of 67.1% lead and 1,541 g/t silver and just under 3,100 tonnes of copper concentrate with a copper grade of 25.7% in the first quarter of the year.
In a more recent update since announcing the deal with Glencore for Hiillgrove, the company released the assay results from a few additional holes drilled on the property.
These holes will allow Red River to convert (a portion of) the JORC 2004 compliant resource on those zones to a JORC 2012 compliant resource estimate. Keep in mind the JORC 2012 estimate currently contains less than 700,000 ounces of gold and just over 165 million pounds of antimony. About 25 holes have now been drilled on the Eleanori-Garibaldi zones, and this should hopefully result in a meaningful increase of the total resource base.
Disclosure: The author has no position in Red River Resources. Please read our disclaimer.