Contract awarded for operatorship of Red River’s Thalanga mine in Qld

PYBAR Mining Services has been awarded an underground mining contract to operate Red River Resources’ (ASX:RVR) Far West deposit.

The Far West deposit is a part of the larger Thalanga zinc operation located about 65km southwest of Charters Towers in central Queensland.

Far West has a JORC reserve of 1.5Mt at 12 per cent zinc equivalent, with a minimum mine life of five years.

The contract has a duration of seven years which will encompass the box cut, excavation, drill and blast. Far West’s decline cut has been completed.

The start of production is expected to create a further 35-40 jobs to that of 155 people already employed at the site as of late May. This includes contractors and an exploration drilling crew.

Resource extension drilling on the Far West development is likely to take place later this year.

PYBAR’s procurement officer was accepting quotes for services.

The Far West has appointed a mine manager to oversee development (portal, decline and ventilation raises).

Red River has secured offtake agreements with majors such as Glencore (albeit for copper) and Trafigura.

First mill feed is expected from to commence in March, 2019 ramping up to 330 ktpa.

Current estimates for the mine life of the Far West deposit is estimated at five years.

Source: Projectory

Further details of the Far West Ore Reserve and Mineral Resource estimate, refer to the ASX release ‘Far West Ore Reserve and Mineral Resource Update Extends Thalanga Mine Life’.