Red River Resources Limited (ASX: RVR) has announced a highly encouraging update on the Liontown project in northern Queensland.
The company said that an updated Liontown Mineral Resource (Fresh Sulphide) of 2.6 Mt @ 0.7% Cu, 1.6% Pb, 5.1% Zn, 1.4 g/t Au & 30 g/t Ag (12.4 % Zn Eq.).
RVR reported material increase in tonnage and contained metal from 2015 Liontown Mineral Resource (Fresh Sulphide) estimate. This includes 36% increase in Mineral Resource Tonnage, 125% increase in contained gold, 109% increase in contained copper, 53% increase in contained zinc, 34% increase in contained lead, and 51% increase in contained silver.
The company said that the total Liontown Project Mineral Resource (Fresh Sulphide) (Liontown + Liontown East) has increased +20% to 4.1Mt @ 0.6% Cu, 1.9% Pb, 5.9% Zn, 1.1 g/t Au & 29 g/t Ag (12.7% Zn Eq.)
The company reported a separate shallow oxide resource of 113,000 tonnes @ 1.9g/t Au & 24 g/t Ag.
RVR noted that the Liontown Project is open at depth and strike, which shows excellent potential for further increases.
The company said that Liontown is progressing as the next mine at Thalanga and the mine design and mine planning studies are expected in the next quarter.
The Liontown Project is located 40km southwest of Charters Towers in Queensland. The project is a part of Red River’s Thalanga operations in northern Queensland.
Tenure for the Liontown/Waterloo Project area comprises two exploration permits (or part thereof) and one mining licence.
The Liontown Project consists of the Liontown and Liontown East deposits, located approximately 32km in a direct line from Red River’s Thalanga operations and 107km by road.
The Project comprises polymetallic VHMS deposits, New Queen Lens, Main Lens, and Liontown East; and a later gold-rich copper mineralised vein system (IRGS), the Carrington Lode.
MRE estimated for Liontown
The company announced that it has updated the Liontown Mineral Resource Estimate, delivering a Liontown Mineral Resource (Fresh Sulphide) for the Liontown Main, New Queen, Western Footwall, and Gap lodes.
Red River said that it has updated the Liontown Mineral Resource using results from its recently completed drilling program of (34 holes drilled in 2019 and 3 holes drilled in 2018) at Liontown.
RVR said that geological data from the drilling program was also used to more accurately model the various lodes at Liontown, while transitional mineralisation was also estimated but not reported.
Updated MRE for Liontown project
The company reported that the updated Liontown Mineral Resource is now 2.6 Mt @ 0.7% Cu, 1.6% Pb, 5.1% Zn, 1.4 g/t Au and 30 g/t Ag (12.4% Zn Eq.).
Significant increase in tonnage
The company said that the updated Liontown Mineral Resource is a material increase in tonnage and contained metal over the previously announced (2015) Liontown Mineral Resource.
RVR reported that tonnage has increased by 36%. This includes a 125% increase in contained gold, a 51% increase in contained silver, a 109% increase in contained copper, a 34% increase in contained lead, and a 53% increase in contained zinc.
High-grade copper-gold, shallow oxide resource
Red River said that the Liontown Mineral Resource contains a high-grade copper-gold resource of 612,000 tonnes @ 1.6% Cu, 0.7% Pb, 2.1% Zn, 3.5 g/t Au & 13 g/t Au in the Western Footwall and Gap Lodes and also reported is a separate shallow oxide resource of 113,000 tonnes @ 1.9g/t Au & 24 g/t Ag.
20% increase in Total Mineral Resource
The total Liontown Project Mineral Resource (Liontown & Liontown East) has increased by 20% to 4.2Mt @ 0.6% Cu, 1.9% Pb, 5.9% Zn, 1.1 g/t Au & 29 g/t Ag (12.7% Zn Eq.), with contained metals increasing, particularly gold (increase of 75%) and copper (increase of 59%).
Red River reported that it plans to develop Liontown as the third mine as part of its Thalanga operations, given the high-grade gold-rich nature of the deposit.
RVR has a pre-existing Mining Lease (ML 10277) at Liontown and this may enable early works to commence to develop the deposit, initially targeting the New Queens Lens.
Red River said that the Liontown mine design work and mining studies are proceeding and expected to be complete next quarter.
RVR reported that further drilling at Liontown is planned. The company said that the conversion of Inferred to Indicated and Measured Resources will occur. RVR said that the Mineral Reserve optimisation and estimation and Metallurgical studies are ongoing.
Red River Managing Director Mel Palancian said: “The material upgrade to the Liontown Mineral Resource, with contained gold and copper more than doubling is an outstanding result, and validates our decision to develop Liontown as the third mine as part of our Thalanga operations, especially given its high gold content.
This year we plan to progress Liontown for potential development next year as we work to increase our exposure to gold at Thalanga while prices are at record highs, in tandem with bringing the Hillgrove gold project in NSW back into production this year.”