Name of the Project
Thalanga zinc restart project.

Location
Queensland, Australia.

Client
Red River Resources.

Project Description
Red River is studying the potential of restarting production at the 650 000 t/y Thalanga processing plant near Townsville. The plant is currently on care and maintenance.

The restart study is based on production from three deposits – West 45, Far West and Waterloo. The study envisages that Red River will sequentially mine the West 45, Far West and Waterloo deposits. The planned mine designs and schedules for West 45, Far West and Waterloo are based on industry-standard Australasian mechanised underground mining techniques.

Average production is estimated to be 21 400 t/y of zinc, 3 600 t/y of copper, 5 000 t/y of lead, 2 000 oz/y of gold and 370 000 oz/y of silver in concentrate over an initial mine life of five years.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The restart project has an estimated net present value, at an 8% (real) discount rate, of $84-million and an internal rate of return of 61%.

Value
Preproduction capital is estimated at $17.2-million.

Duration
The project has a short timeline to production of about six months. Production is set to start in the fourth quarter of 2017.

Latest Developments
Red River has finalised offtake agreements for the zinc and lead concentrate to be produced from the project. Commodity trader Trafigura has committed to take 122 000 dry metric tons of zinc concentrate and 27 400 dry metric tons of lead concentrate. Pricing will be determined at the time of shipment.

Under the terms of the offtake agreements, concentrates will be trucked about 200 km to the Port of Townsville for onward delivery to customers.

Red River reports that the project remains on budget and schedule to resume production in the fourth quarter of 2017.

Key Contracts and Suppliers
PYBAR Mining Services (underground mining contract).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Red River Resources, MD Mel Palancian, tel +61 3 9095 7775 or email mpalancian@redriverresources.com.au.