Red letter quarter for Red River

QUEENSLAND polymetallic miner Red River Resources has trounced last quarter’s record copper production at its flagship mine in the Sunshine State.
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Haydn Black


The miner's Thalanga operation, which processes ore from the Far West underground mine, produced 51% more of the red metal in the September quarter.
Stable operations and a shift to focus on stoping ore at Far West saw 4073 tonnes of copper concentrate produced, breaking the previous record of 2696t that was only set in the June quarter.
The increase was despite a small fall in recovery rates from 84.7% to 81.4%.
The operation also produced 7026t of zinc concentrate, up 55%, and 72% more lead concentrate at 1947t.
Mining rates and grade increased from 83,000t at 9.6% zinc equivalent to 99,000t at 11.7%, while milling rates and head grade increased from 82,000t at 9.2% to 103,000t at 11.5%.
The prior quarter saw lower grades and production at Far West, with the focus then on decline development over stoping. There were also issues around dilution and overbreak to address.
Red River next anticipates pouring its first gold bars from its Hillgrove project in New South Wales before the end of the year.
It could be the icing on the cake for a vastly improved first half, after the company repaid a US$6 million working capital facility held with its lead-zinc off-take partner, Trafigura.
The facility was drawn down in March to support development at Thalanga, and $5 million was owed at June 30, with the company focusing cash flow from Thalanga to clear the debts by the end of September.
The company is now debt free.
Red River's stock was up 13% this morning at A19c, a 12 month high, capitalising the company at $94 million.