Red River completed the acquisition of the Hillgrove Gold Mine in August 2019. The previous owner had placed Hillgrove in care & maintenance in 2015/2016 due to low commodity prices. Red River undertook a detail restart study, and the study outcome was a staged restart approach, generating low operating risk and capital cost.

Stage One (Bakers Creek Stockpile)

Stage One (Bakers Creek Stockpile) Restart commenced at the end of December 2020 when first ore was fed into the mill.

  • Stage One estimated life of 12 months
  • Bakers Creek Stockpile (225,000 tonnes @ 2.5 g/t Au) processed to produce a gravity gold concentrate and a flotation gold concentrate
  • Trucked 9km to mill using existing surface vehicle fleet
  • Concentrates will be leached on site to produce saleable gold doré
  • Estimated restart capital cost of A$5m
     

Figure 1 First Stage One Ore fed into Hillgrove Mill

Stage Two (Full Restart of Underground Mining Operations)

  • UG mining operations forecast to commence mid to late 2021 in Metz Mining Centre
  • Metz Mining Centre has a JORC Mineral Resource of 3.0Mt @ 4.5 g/t Au & 1.4% Sb (6.5 g/t Au Eq.) (426koz Au & 41kt Sb contained)
  • Production of gold doré, gold concentrate and antimony-gold concentrate
  • RVR is aiming for Stage 2 operational life of greater than 5 years producing 30,000-50,000oz gold equivalent p.a.


The Metz Mining Centre is currently on active care & maintenance, with all infrastructure (ventilation, power, water) in place to support near term restart of mining. Previous owners invested significant capital in development the Metz Mining Centre, with approximately 3,950m of declines and capital development, 3,400m of ore drives in the Syndicate Lode, 500m of ore drives in Blacklode and 320m of ore drives in Cox’s Lode.


Figure 2 Metz Mining Centre Decline


Figure 3 Metz Mining Centre Development

Upsides

  • There is substantial upside to extend mine life and/or increase production rate from current JORC 2012 Mineral Resource of 5.0Mt @ 4.3 g/t Au & 1.5% Sb (6.4 g/t Au Eq.) (692koz Au & 75kt Sb contained)
  • Red River is also converting the material JORC 2004 Mineral Resource at Hillgrove to a JORC 2012 Mineral Resource. The resource conversion process has highlighted the potential for Eleanora as a second mining front and other targets at Hillgrove