Mine plan for region

A NEW mine is being planned near Charters Towers after “phenomenal” prospecting results at the site.

Red River Resources is looking to develop the Liontown project. Managing director Mel Palancian said it would be a “significant mine” for the company and help support its workforce.

ANOTHER mine is to be developed near Charters Towers to support the operations of base metals producer Red River Resources.

Red River announced the move as it reported “exceptionally high-grade” gold-rich mineralisation at its Liontown project about 50km south of Charters Towers.

The miner employs about 170 people at Thalanga, 65km southwest of Charters Towers, where it operates a processing plant and mines producing copper, lead and zinc concentrates with credits of gold and silver.

Red River managing director Mel Palancian said Charters Towers was living up to its reputation as a highly prospective area.

“I think it’s pretty exciting times for Red River.

“Our drilling success has been phenomenal. The ground is really prospective,” Mr Palancian said.

Results from Liontown include an 18.35m intersect of 9 per cent zinc equivalent including an intercept of 0.5 per cent copper, 13.7 per cent lead, 29.6 per cent zinc, 9.8grams per tonne gold and 371 grams per tonne silver.

The company is now updating the mineral resource estimate for the project, which currently sits at 3.5 million tonnes at 10 per cent zinc equivalent.

Mr Palancian said they planned to develop Liontown as its next mine.

He said drilling results for the New Queen Lens showed Liontown was their largest mineralised system and was still open along strike and depth.

“The next step is to get the mineral resource updated and do the conceptual mining studies,” Mr Palancian said.

“It’s going to be a significant mine for us.

“What it does say is that Thalanga is going to be around for a long time.”

Liontown is a historic gold mining area, having produced an estimated 54,000oz of silver, 3000oz of gold and 520 tonnes of lead in shallow mines up to 20m deep in the 1950s.

The company is developing the Far West underground mine at Thalanga as it looks to close its existing West 45 mine later this year.

I THINK IT’S PRETTY EXCITING TIMES FOR RED RIVER. OUR DRILLING SUCCESS HAS BEEN PHENOMENAL. THE GROUND IS REALLY PROSPECTIVE

MEL PALANCIAN