Red River has updated the total resource at the Hillgrove project to 5.04 million tonnes grading 4.3 grams per tonne gold and 3.6% antimony for 692,000 ounces gold and 75,000t antimony.
The update comes with the upgrade of resources for the Syndicate Lode to 318,000t at 8.9gpt gold equivalent for 39,000oz gold and 11,000t antimony. It is based on a revised 3gpt cut-off.
The company plans to start recovering gold from the 18,000oz Bakers Creek stockpile before transitioning to underground mining next year at the Metz Mining Centre, where it can access the Syndicate Lode, Sunlight Lode and Blacklode, which together host 426,000oz gold and 41,000t antimony.
Previously, resources for just the Blacklode and Sunlight Lode were 387,000oz gold and 30,000t of antimony.
Cashflow from Metz is expected to underpin future exploration and development.
The Hillgrove project also has a substantial remaining JORC 2004 resource that Red River is systematically converting to JORC 2012 compliance.
Red River secured the suspended project in August 2019 for a fraction of the estimate A$200 million that has been spent since 2004 and believed the project was highly economic, even before the current gold price environment.
The stage one restart is expected to cost just $5 million, before gradually transitioning to underground mining in the second half of 2021.
Stage two aims to produce 30,000-50,000ozpa gold equivalent.
Red River shares were last traded at 13.5c, valuing the diversified miner at $70 million.
