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Red River Resources Ltd Sees Opportunity To Grow Thalanga Zinc Project

Red River Resources Ltd (ASX:RVR) has identified new exploration targets within the Thalanga Zinc Project in central Queensland after a review of historic data.

Multiple high priority targets were identified in the review, including at historic intersections of 5.7 metres at 23.2% zinc equivalent and 4.6 metres at 4.1% copper.

These two intersections were found in the Thalanga East and Far East area of the project.

Modelling on Thalanga East and Far East will be conducted to define drill targets designed to extend the known mineralisation.

Mel Palancian, managing director, commented: "This review has confirmed that Thalanga remnant ore body is open at depth to the west and east, and has also identified a number of high priority exploration targets, in particular beneath the known mineralisation at Thalanga East and the Far East zone."

Thalanga Zinc Project

Red River released a Restart Study to assess the potential restart of the Thalanga Zinc Project in October 2015, which demonstrated the highly attractive nature of the project.

Thalanga has a low operating cost, a low pre-production capital cost of $17.2 million and a short timeline to production of six months.

Annual average production is 21,400 tonnes of zinc, 3,600 tonnes of copper, 5,000 tonnes of lead, 2,000 ounces of gold and 370,000 ounces of silver in concentrate, over the initial mine life of five years, with potential to extend the initial mine life.

Red River has already tapped into this potential by recently increasing the Far West resource at the Thalanga Zinc Project by 42% to 1.6 million tonnes at 14.9% zinc equivalent.

Analysis

The review of historical drilling has successfully identified further potential to extend known mineralisation at Thalanga.

This extension potential will build on the recently upgraded Far West resource.

Intersections at depth of 4.6 metres at 4.1% copper at Thalanga East and 5.7 metres at 23.2% zinc equivalent at Thalanga Far East will be prioritised.

Deep drilling has been successful in locating additional resources at other similar style deposits in Australia such as the world class Rosebery deposit in Tasmania.

Red River is already leveraged to exploration success through current drilling set to target the Liontown East prospect in central Queensland, a large untested anomaly that exists below historic shallow intercepts.

Red River has attracted broker research from Hartleys with a $0.36 price target, and Foster Stockbroking with a $0.28 price target.

Shares in the company last traded at $0.13.

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