Diamond drilling at the target intersected a 20.9m zone of massive, semi-massive and stringer sulphide mineralisation from 527.3m-546.2m downhole, including 2.4m of massive sulphide from 529.3m-531.7m.

An additional interval of 12.3m of stringer sulphide mineralisation was intercepted from 552.5m to 565.8m downhole.

Liontown East is said to have a strike extent of about 100m.

While the company is awaiting assay results from mineralised zones at the project, Red River said field observations indicated the sulphides were rich in sphalerite, a mineral that is the chief ore of zinc.

In addition to drilling a number of daughter wedge holes from the original drillhole, the company is planning to drill another four holes at Liontown East.

Following this, the company plans to drill the nearby Scarecrow target during the September quarter.

The Liontown project currently has a resource of 2 million tonnes at 4.6% zinc, 0.5% copper, 1.6% lead, 0.8 grams per tonne gold and 25gpt silver.

Red River restarted mining activity at its underground West 45 mine in April, with refurbishment works on the Thalanga mill due to be completed by the September quarter.

The company is aiming to start commercial production from the project in the fourth quarter of this year, using ores from the West 45, Far West and Waterloo deposits for an initial mine life of five years.

Red River held A$33.1 million in cash at the beginning of April after securing $15.9 million in January – the second tranche of a $30 million placement.

The company plans to spend $4.7 million in the next quarter, including $2.5 million in development expenses.

Shares in Red River last traded at 17.5c, valuing the company at $82.6 million.