Red River Resources : Quarterly Activities Report for December 2021

Published: 2022-01-13 17:32:24 ET RVR.AX

For personal use only

ASX Announcement

ASX Code: RVR

14 January 2022

Quarterly Activities Report

for the period ending 31 December 2021

________________________________________________________________________________

Quarter Highlights

Thalanga Mine

Hillgrove Gold Project

Corporate

Address: Level 6, 350 Collins Street, Melbourne, VIC, 3000, Australia

For personal use only

1. SAFETY AND ENVIRONMENTAL PERFORMANCE

1.1. Thalanga Base Metal Operations Safety and Environmental Performance

Thalanga's site headcount during the period was 139 people. There were 64 full-time Red River Resources employees and an additional 75 contractors working in exploration and mining, with a total 90,346 hours worked. The Total Recordable Injury Frequency Rate (TRIFR) is 16.1 for December YTD. There were no medically treated injuries during the quarter, and no Lost Time Injury (LTIs).

1.2. Hillgrove Gold Mine Safety and Environmental Performance

Hillgrove's site headcount during the period was 62 people including contractors with 32,572 hours worked. The Total Recordable Injury Frequency Rate (TRIFR) is 7.3 for December YTD. There was one medical treated injury during the quarter, and zero Lost Time Injuries (LTIs).

1.3. Coronavirus (COVID-19) Update

Red River continues to implement preventative measures to reduce risk to employees and operations at all sites. These preventative measures include increased hygiene practices, restrictions on non-essential travel, social distancing, limiting visitors to site and remote working where possible.

Reduced mining production labour levels at Thalanga negatively impacted production during the quarter. Red River continues to work closely with the mining contactor to ensure manning levels are as close to plan as possible.

Thalanga and Hillgrove are residential operations and Red River is striving to ensure its workforce and the communities in which it operates are not impacted.

Address: Level 6, 350 Collins Street, Melbourne, VIC, 3000, Australia

T: +61 3 9017 5380 F: +61 3 9670 5942 W: www.redriverresources.com.au

For personal use only

2. THALANGA BASE METAL OPERATIONS (QUEENSLAND)

Red River's Thalanga Operations is located approximately 65km southwest of Charters Towers in Northern Queensland and 200km from Townsville. Thalanga consists of a 650ktpa capacity processing plant which produces separate copper, lead and zinc concentrates with material precious metal (gold and silver) credits.

Thalanga is in the highly prospective Cambro-Ordovician Mt Windsor Volcanic Belt which contains a number of known polymetallic (copper-lead-zinc +/- gold-silver) volcanic hosted massive sulphide (VHMS) deposits and gold deposits.

Red River acquired the Thalanga Operations in 2014 and commenced production from the West 45 deposit in 2017. Production from West 45 ceased in 2020 and ore for the Thalanga Operation is currently being sourced from the Far West underground mine, with plans to develop the Liontown deposit to extend the operational life of Thalanga.

2.1. Operations Update

Thalanga Operations mined 62kt @ 1.3% Cu, 1.6% Pb, 4.6% Zn, 0.2 g/t Au & 39 g/t Ag (12.0% Zn Eq.), and processed 62kt of ore grading 1.1% Cu, 1.7% Pb, 4.5% Zn, 0.3 g/t Au & 52 g/t Ag (11.1% Zn Eq.).

Changes to Thalanga's ground control management plan required additional ground support to be installed retrospectively in all existing and future ore drives. This created a significant workload which impacted access to current stoping fronts and reduced Thalanga's production in October and November along with labour shortages due to covid. The mine is progressively installing the additional ground support on an ongoing basis and production improved in December.

Copper concentrate production for the quarter was 1,996 DMT. Copper recovery to copper concentrate averaged 79.7% for the period, with an average copper concentrate grade of 26.9% Cu, 3.6 g/t Au and 388 g/t Ag.

Zinc concentrate production for the quarter was 4,697 DMT zinc. Zinc recovery to zinc concentrate averaged 87.3% for the period and a high-quality zinc concentrate grading 51.9% zinc was produced.

Lead concentrate production for the quarter was 1,100 DMT lead concentrate produced. Lead recovery to lead concentrate was 64.8%, with an average concentrate grade of 62.2% Pb, 3.7 g/t Au & 1,458 g/t Ag produced during the period.

2.2. Concentrates Sales & Marketing

Thalanga sold 4,929 DMT zinc concentrate, 1,137 DMT lead concentrate and 2,022 DMT copper concentrate during the quarter. Base metal concentrates were delivered under long-term offtake agreements to Trafigura (zinc and lead concentrate) and Glencore (copper concentrate). The Company continued to execute a short- term hedging program over the quotation period (QP) for sales of zinc and lead metal already produced. Typically, between 80 and 90% of the payable zinc and lead metal for each shipment of zinc and lead concentrates was hedged for the period from the issue of the first provisional sales invoice to the final settlement of the sale, which may occur one to three months later. The QP hedges currently in place on the quarter's zinc concentrate sales range between US$1.34 and US$1.58 per pound of payable zinc metal, were between US$0.98 and US$1.09 per pound of payable lead metal in lead concentrate and ranged between US$4.22 and US$4.40 per pound of payable copper metal in copper concentrate.

Address: Level 6, 350 Collins Street, Melbourne, VIC, 3000, Australia

T: +61 3 9017 5380 F: +61 3 9670 5942 W: www.redriverresources.com.au

Table 1: Thalanga Operations Summary for Q2 FY2022 (Quarter ended 31 December 2021)

Units

YTD

FY21

FY22

only

Total Tonnes Mined

101

103

165

Copper grade

1.2

1.3

Lead grade

1.4

1.3

1.6

Zinc grade

4.0

4.3

4.0

4.4

4.6

4.5

Gold grade

g/t

0.2

Silver grade

g/t

Zinc equivalent grade

10.2

10.8

10.1

11.1

12.0

11.4

use

Ore Processed

112

107

169

Copper grade

1.1

1.3

1.1

1.2

Lead grade

1.6

1.7

1.4

1.6

1.7

Zinc grade

3.9

4.4

3.9

4.3

4.4

4.5

Gold grade

g/t

0.2

0.3

Silver grade

g/t

Zinc equivalent grade

10.3

10.9

10.0

11.4

11.1

11.3

personal

Zinc Concentrate Produced

DMT

7,430

6,959

6,311

7,539

4,697

12,236

Lead concentrate sold

DMT

2,024

1,484

1,471

1,983

1,137

3,120

Zinc grade

52.8

53.4

52.7

54.4

51.9

53.4

Zinc recovery

89.1

89.0

88.7

87.3

88.2

Lead Concentrate Produced

DMT

1,914

1,613

1,350

1,984

1,100

3,084

Lead grade

68.8

67.1

68.1

62.7

62.2

62.5

Gold grade

g/t

4.7

5.1

4.0

3.8

3.7

3.8

Silver grade

g/t

1,497

1,541

1,447

1,304

1,458

1,359

Lead recovery

74.4

69.2

66.2

71.5

64.8

68.9

Copper Concentrate Produced

DMT

3,564

3,068

3,565

4,411

1,996

6,407

Copper grade

28.4

25.7

24.0

27.0

26.9

27.0

Gold grade

g/t

1.4

1.7

1.8

2.1

3.6

2.5

Silver grade

g/t

299

318

351

312

388

336

Copper recovery

79.4

74.5

80.1

84.5

79.7

82.9

Zinc concentrate sold

DMT

8,286

6,700

6,261

7,501

4,929

12,430

For

Copper concentrate sold

DMT

3,735

3,025

3,398

4,588

2,022

6,610

Address: Level 6, 350 Collins Street, Melbourne, VIC, 3000, Australia

T: +61 3 9017 5380 F: +61 3 9670 5942 W: www.redriverresources.com.au

For personal use only

8,000

7,000

(tonnes)

6,000

5,000

Produced

4,000

Concentrate

3,000

2,000

1,000

Q2 FY21

Q3 FY21

Q4 FY21

Q1 FY22

Q2 FY22

Lead Concentrate

Copper Concentrate

Zinc Concentrate

Figure 1: Thalanga Quarterly Concentrate Production

Thalanga Revenue by Metal Q2 FY22

32%

44%

10% 2%

12%

Copper

Gold

Silver

Lead

Zinc

Figure 2: Thalanga Q2 FY22 Revenue Split

Address: Level 6, 350 Collins Street, Melbourne, VIC, 3000, Australia

T: +61 3 9017 5380 F: +61 3 9670 5942 W: www.redriverresources.com.au

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Red River Resources Limited published this content on 13 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 January 2022 22:31:00 UTC.