Red River Resources Limited (ASX: RVR) has announced an encouraging update on its Liontown Project, part of its Thalanga Operations in Northern Queensland.
The company reported that it plans to develop high-grade, gold rich polymetallic Liontown deposit next at Thalanga. RVR said that the gold-rich polymetallic mineralisation intersected in New Queen Lens drilling supports Liontown development
Some of the exceptionally high-grade gold-rich mineralisation in the New Queen Lens includes 18.35m @ 9.0% Zn Eq. from 48.65m down-hole (LTDD19036).
The company also intersected outstanding high-grade copper-gold mineralisation in Carrington Lode. Highlights include 11.35m @ 3.1% Cu & 0.9 g/t Au; and 5.60m @ 2.1% Cu & 7.5 g/t Au from 99.70m.
Red River announced that the Mineral Resource update for Liontown Project is expected in March 2020 with Liontown mine design work progressing.
The Liontown Project is located 40km southwest of Charters Towers in North Queensland. Tenure for the Liontown/Waterloo Project area comprises two exploration permits (or part thereof) and one mining licence.
The Liontown Project has a current Mineral Resource of 3.5Mt @ 10.0% Zn Eq. and is the largest resource at Thalanga. 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.
The New Queens Lens is a large body (approximately 600m by 250m by 5m) of polymetallic (Cu-Pb-Zn) VHMS mineralisation with significant precious metal (gold and silver) credits.
Drilling at New Queens Lens
The company had commenced drilling at New Queens Lens. RVR said that the drilling to date has returned wide intercepts of high-grade polymetallic fresh sulphide mineralisation with material precious metals, particularly gold, from within 30m of the surface.
High-grade intersections from New Queens Lens
The company announced that the final assay results from drilling at the New Queen Lens highlighted the precious metal-rich nature of the VHMS mineralisation, with notable intercepts including the exceptionally high-grade mineralisation intersected in LTDD19036.
RVR reported that hole LTDD19036 intersected 18.35m @ 9.0% Zn Eq. from 48.65m down-hole, including 4.20m @ 23.6% Zn Eq. from 53.10m down-hole including an exceptional intercept of 1.10m @ 0.5% Cu, 13.7% Pb, 29.6% Zn, 9.8 g/t Au & 371 g/t Ag (57.9% Zn Eq.) from 56.20m down-hole.
RVR said that the current Liontown drilling program has highlighted exceptionally high-grade precious metal rich polymetallic mineralisation in the New Queen Lens, with thick intercepts of fresh sulphide mineralisation at relatively shallow depths.
Gold-silver oxide mineralisation
It may be noted that from 1951 to 1961, the New Queen Lens (oxide zone) was mined by underground methods to a depth of 15-20m, with total production estimated at ~9,300 tonnes of high-grade oxide ore containing ~54,000oz silver, ~3,000oz of gold and ~520 tonnes of lead.
Red River reported that its drilling has confirmed the presence of unmined high-grade gold-silver oxide mineralisation.
The company said that the drill hole LTDD19034 returned outstanding results including 2.20m @ 15.2% Pb, 5.5 g/t Au & 642 g/t Ag from 31.80m down-hole including 0.75m @ 40.6% Pb, 9.5g/t Au & 619 g/t Ag from 31.80m down-hole.
Drilling at Carrington Lode
The company reported that the drilling also intersected the copper-gold rich Carrington Lode, with LTD19029 and LTDD19030 returning outstanding intersections.
Drill hole LTDD19029 intersected 11.35m @ 3.1% Cu & 0.9 g/t Au including 4.65m @ 5.5% Cu & 2.1 g/t Au from 188.00m down-hole; while drill hole LTDD19030 intersected 5.60m @ 2.1% Cu & 7.5 g/t Au from 99.70m down-hole including 2.50m @ 1.7% Cu & 13.5g/t Au from 102.80m down-hole.
MRE to be completed by March
The company reported that with completion of the current Liontown drilling program, it is working to update the Liontown Project JORC 2012 Mineral Resource (including the Mineral Resource update for the New Queen Lens).
Red River said that the Liontown Project Mineral Resource update is expected to be completed in March 2020.
Updates and next steps
Red River said that Liontown mine design work and mining studies are proceeding. The company said that it has decided to focus on developing Liontown as its third mining operation at Thalanga, increasing mill throughput at Thalanga and Red River’s exposure to gold and silver production.
Red River had previously planned to develop the zinc-rich Waterloo Project as the third mining operation. The company said that Waterloo will now be placed on hold.
RVR said that it will investigate the potential to define additional gold-silver oxide mineralisation at New Queens Lens and whether this can be mined as part of the Liontown Project.
The company reported that further Drilling at Liontown is ongoing.
Red River Managing Director Mel Palancian said, “Given the results from Liontown, in particular the New Queens Lens in 2019 drilling, there is a strong rationale for fast tracking Liontown’s development as our next priority. We are finalising a Mineral Resource update and mine planning for the deposit.
Prioritising the development of Liontown will allow us to increase production of gold and copper at Thalanga while we continue restart studies for the Hillgrove Gold Project in New South Wales.
We previously planned to develop Waterloo as the third deposit at Thalanga, but the discovery of the Liontown East deposit and the New Queen drilling results shown that Liontown is a much larger mineralised system and its still open along strike and depth.”