Name of the Project
Thalanga zinc restart project.

Location
Queensland, Australia.

Client
Red River Resources.

Project Description
The Thalanga plant is currently on care and maintenance.

A restart study on Thalanga envisages the restart of production at the 650 000 t/y Thalanga processing plant, near Townsville, in Queensland.

The study has highlighted several outstanding project qualities and has confirmed the economic viability and low risk of the proposed mining operation.

The 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.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The 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 $17.7-million.

Duration
The project has a short timeline of about six months to restart production, after the Red River board makes the final investment decision.

Latest Developments
The restart of the Thalanga zinc project is now fully funded after Red River announced a A$30-million capital raise.

The company told shareholders on December 2 that it had received commitments to raise A$30-million through a two-tranche placement of 162.1-million shares, priced at 18.5c a share.

The first tranche will comprise about 76.1-million shares and will be issued within the company’s placement capacity, while the balance of the shares will be placed subject to shareholder approval.

Following the funding initiative, Red River will immediately start to increase restart activities at Thalanga, with the production expected to start in the second half of 2017.

Red River is also completing ongoing discussions with a number of interested parties regarding concentrate offtake agreements.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Red River Resources, tel +61 3 9095 7775 or fax +61 3 9670 5942.