The Thalanga Zinc Project consists of the Thalanga Mill and the West 45, Far West and Waterloo, Orient and Liontown base metal deposits located approximately 65km SW of Charters Towers in Central Queensland.

The Thalanga Project is one of the best located base metal projects in Australia. Access to the Project is via a 6km sealed road which links to the all weather Flinders Highway (A6), and is 200km by the Flinders Highway to Australia’s #1 base metal concentrate export port at Townsville, which also hosts Korea Zinc’s Sun Metals zinc smelter.

The Project is connected to the regional energy grid, with a fully energised 66kV connection at the Mill site.

Thalanga will be operated as a non-residential site, with the workforce being predominately sourced from Charters Towers (population of approx. 10,000) which has a long history of mining and a deep pool of skilled labour.


Thalanga Project Location 

The original Thalanga deposit was discovered in the late 1970s and is a volcanic hosted massive sulphide (VHMS) deposit and is the largest of the known VHMS deposits that have been discovered to date in the Cambro-Ordovician Mt Windsor Volcanic belt.

A pre mining non JORC compliant resourceof 6.35Mt @ 2.2% Cu, 3.9% Pb, 12.3% Zn, 0.6 g/t Au and 99g/t Ag was defined at Thalanga in addition to a copper rich supergene resource of 489,000 tonnes @ 6.8% Cu, 2.3% Pb, 8.7% Zn, 0.85g/t Au and 89g/t Ag and a gold-silver resource of 184,000 tonnes @ 1.68g/t Au and 96g/t Ag, for a total resource of 7.0Mt @ 2.5% Cu, 3.7% Pb, 11.7% Zn, 0.6g/t Au and 98g/t AgTotal recorded production from Thalanga exceeded 4 million tonnes at 1.6% Cu, 3.0% Pb, 9.3% Zn, 0.4 g/t Au and 77g/t Ag2  from Thalanga West, Vomacka and Thalanga East. Thalanga was mined from 1989 to 1998, and the Vomacka open pit was mined from 2010 to 2012.

1 Gregory, P.W., Hartley J.S. and Willis, K.J.A., (1990) Thalanga zinc-lead-copper-silver deposit, in Geology of the Mineral Deposits of Australia and Papua New Guinea (Ed. F.E. Hughes), pp. 1527-1537 (The Australasian Institute of Mining and Metallurgy: Melbourne)

2 Otterman (2006) Independent Consulting Geologist’s Report, Liontown Resources

The Thalanga Project currently hosts a total JORC Code (2012) compliant Mineral Resource of 5,521kt grading 1.1% Cu, 1.9% Pb, 6.6% Zn, 0.5g/t Au and 43g/t Ag (12.9% Zn Equivalent).


Thalanga Mill 

The Thalanga Mill has a current annual treatment capacity of 650ktpa ore, and can produce separate copper, lead and zinc concentrates. The Mill is fully permitted and energised. There is currently sufficient capacity in the existing Tailings Storage Facility for the initial five years of planned production.

The Mill is currently being refurbished, with the refurbishment scheduled to be completed in 3Q CY2017 and with production being restarted in 4Q CY2017 


Thalanga Zinc Project Restart 

The Thalanga Zinc Project is scheduled to restart production in Q4 2017. The current status of the project is as follows:

Funding

Fully funded for development and exploration

Permitting

Fully permitted to commence production

Site Management Team

Senior site management team recruited

Mining Contactor

PYBAR engaged as mining contractors and mobilised to site

Restart – Thalanga Mill

Refurbishment scheduled to be completed by Q3 CY17

Restart -  West 45 UG Mine

Mining/development activity commenced

Concentrate Offtake Agreements

Competitive tender process – negotiations ongoing

Commercial Production

Scheduled to commence in Q4 CY17

The key operating metrics of the Thalanga Zinc Project are as follows, with the first deposit to be developed being West 45, followed by Thalanga Far West and Waterloo.
 

Production Target

1.7Mt @ 7.5% Zn, 1.4% Cu, 2.1% Pb, 0.5g/t Au and 54g/t Ag (15.2% Zn Eq.)

Initial Mine Life

5.25 years

Annual average production

Annual average metal production of 21.4kt Zn, 3.6kt Cu, 5.0kt Pb, 365koz Ag and 2,000oz Au in concentrate (34.2ktpa Zn Eq.)

LOM average C1 Cash Cost

US$0.18/lb payable Zn (after credits)

Pre-production capex

A$17.2m


Red River is focussed on optimising the Thalanga Zinc Project based on the mantra of ‘find more ore’ – to extend mine life and/or increase throughput.


The Thalanga Zinc Project represents a unique opportunity to create value

  • Current mill capacity of 650ktpa
  • Planned utilisation rates of 300-400ktpa
  • Opportunity exists to process additional tonnage at incremental processing costs
  • Will give Red River the opportunity to take advantage of forecast high zinc prices and historically low zinc concentrate treatment charges


To ‘find more ore’ Red River is focused on:

  • Defining additional resources at the current development projects (West 45, Thalanga Far West and Waterloo)
  • Convert advanced projects (Liontown and Orient) which are currently not in the Project Restart Mine plan into mineable tonnes and bring into the mine plan
  • Optimise cut off grade at current development projects
  • Aggressively explore Red River’s highly prospective ground holding within the Mt Windsor volcanic belt to find the next generation of base metal deposits