- Red River Resources Limited provided on the Australian projects for the quarter ending 31 December 2021.
- Red River has obtained the classification of ‘mining production entity’.
- The company has settled its royalty dispute by paying AU$19.94 million.
Australian mineral exploration company Red River Resources Limited (ASX:RVR) provides an update about the progress of the Australian projects for the quarter ending 31 December 2021.
Despite the positive news, the shares of RVR remains unchanged, trading at AU$0.20 with a market capitalization of AU$103.69 million.
The secure position
Red River has obtained the classification of ‘mining production entity’ from ASX. As a result, the company is no longer required to lodge a quarterly cash flow report under Appendix 5B to the ASX. The ASX confirmation on change in classification is followed by the solid quarterly production from two projects, namely, the Hillgrove Gold project and Thalanga base metal operations.
The company has settled its royalty dispute by paying AU$19.94 million (AU$2.5 million was paid in September 2021) to Thalanga Copper Mines Pty Ltd, a subsidiary company of Vedanta Resources Limited.
Besides, the company has reported strong assay results from Eleanora-Garibaldi, Hillgrove Sunlight and Liontown Gap Lode.
The Thalanga mine produced 4,697 dry metric tonnes (DMT) zinc concentrate, 1,996 DMT copper concentrate and 1,100 lead concentrate during the quarter. With the installation of additional ground controls, it is expected that production at the location will improve. Drilling activities continue at the Liontown deposits; seven drill holes have been completed, pending assay results.
At the Hillgrove Gold Project, drilling continues and has been completed for eight diamond drill holes. Moreover, underground mining restart planning continues, and negotiation with several mining contractors has advanced.
- RVR reported AU$25.5 million net revenue, out of which AU$1.8 million was generated from Hillgrove Gold mine and AU$23.7 million being generated from Thalanga operations.
- The company has maintained a healthy cash balance of AU$13.2 million during the December quarter, along with the financial assets of AU$18.3 million.
- The company has made numerous investments, beginning with AU$3 million in capital development at Far west, AU$0.6 million in Hillgrove and Thalanga’s project capital and AU$1.2 million in the exploration activities.
Red River has gained a secured position as per the quarterly report. The company has settled the Thalanga royalty dispute, has begun with the planning of underground mining, and provided assay results.