PERTH (miningweekly.com) – Base metals producer Red River Resources will acquire the Hillgrove gold/antimony project, in New South Wales, in exchange for A$4-million worth of shares.
Red River on Wednesday announced an agreement with Brackden Resources to acquire the Hillgrove project, which has an historical production of more than 730 000 oz of gold and 50 000 t of antimony, along with by-product tungsten.
The project contains some A$180-million of infrastructure, including an existing processing plant, surface infrastructure and underground development, and is estimated to host a mineral resource of some 2.8-million tonnes, grading 5.1 g/t gold and 1.7% antimony, for 459 000 oz of gold and 48 000 t of antimony.
Red River MD Mel Palancian on Wednesday said that the company has been working on the acquisition of the Hillgrove project for over six months.
“We love gold and bringing mining assets back to life cheaply. It’s rare to find a high-grade gold asset that is close to production with quality resources and infrastructure. We can fund near-term commitments from our strong existing cash balance and ongoing cash flow.”
Palancian said that the Red River would ensure a smooth transition for Hillgrove and would evaluate opportunities at the mine by upgrading and growing the resource base, and by developing an optimised restart study.
In the meantime, Red River would continue to focus on production and growth at its Thalanga base metals operation.