Name of the Project
Thalanga zinc restart project.

Location
Queensland, Australia.

Client
Red River Resources.

Project Description
Thalanga has been on care and maintenance since 2012.

The restart of the Thalanga zinc operation is based on production from three deposits – West 45, Far West and Waterloo.

The project 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.

Potential Job Creation
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.

Latest Developments
The Thalanga mill has ramped up to a processing rate of 325 000 t/y, exceeding the project’s 300 000 t/y nameplate capacity.

The ramp-up of the Thalanga zinc project has been completed ahead of schedule and is about A$1-million under budget, with 13 500 t of low- to medium-grade ore processed since production started in September.

Red River has said that high-grade ore from the West 45 deposit was being blended into the mill feed, and first concentrate deliveries were expected to start shortly as concentrate stocks increase.

First cash flow was expected to follow shortly thereafter.

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

On Budget and on Time?
Yes.

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