New Red mine for Thalanga on way

ZINC producer Red River Resources is expanding its operations at Thalanga about 200km southwest of Townsville with the development of a new underground mine.

The company conducted a main blast for a box- cut opening of the mine, called Thalanga Far West, this week.

Underground development is expected to start shortly after completion of the box cut, with the company in the midst of selecting a contractor.

Red River Resources employs about 130 people and made its first shipment of zinc concentrates from Townsville port earlier this year.

The company is capitalising on high zinc prices which have tripled in value over the past three years.

The Thalanga Zinc Project consists of the Thalanga Mill and base metal deposits at West 45, where mining commenced last year, the Far West site and nearby deposits at Waterloo, Orient and Liontown, about 65km southwest of Charters Towers.

Red River Resources acquired the operations from the liquidators of Kagara Ltd for $ 6.5 million about three years ago but the mine – opened in the late 1980s – has not operated for five years.

Thalanga is producing zinc, copper and lead concentrates, with offtake agreements in place with Glencore for copper and Trafigura for zinc and lead for three years.

The West 45 deposit hosts 567,000 tonnes at 11.6 per cent zinc equivalent.

Far West has a reserve of 1.5 million tonnes at 12 per cent zinc equivalent and a minimum mine life of five years.