Resources and Reserves

Thalanga Mineral Resource

Source: Red River Resources Ltd. Far West (30 June 2021), Orient (9 February 2015), Waterloo (7 February 2015). Liontown refers to Liontown (11 March 2020) plus Liontown East (2 July 2018). Tonnages and grades are rounded. Discrepancies in totals may exist due to rounding. Reported in accordance with the 2012 JORC code.

Thalanga Ore Reserve

Source: Red River Resources Ltd (30 June 2021). Tonnages and grades are rounded. Discrepancies in totals may exist due to rounding. Reported in accordance with the 2012 JORC code.

Zinc Equivalent Calculation

The net smelter return zinc equivalent (Zn Eq.) calculation adjusts individual grades for all metals included in the metal equivalent calculation applying the following modifying factors: metallurgical recoveries, payability factors (concentrate treatment charges, refining charges, metal payment terms, net smelter return royalties and logistic costs) and metal prices in generating a zinc equivalent value for copper (Cu), lead (Pb), zinc (Zn), gold (Au) and silver (Ag).

Red River has selected to report on a zinc equivalent basis, as zinc is the metal that contributes the most to the net smelter return zinc equivalent (Zn Eq.) calculation. It is the view of Red River Resources that all the metals used in the Zn Eq. formula are expected to be recovered and sold.

Where: Metallurgical Recoveries are derived from historical metallurgical recoveries from test work carried out at the respective deposits. The Metallurgical Recovery for each metal is shown below in Table 1. Metal Prices and Foreign Exchange assumptions are set as per internal Red River price forecasts and are shown in the table below.

Hillgrove Mineral Resource

Source: *AMC Consultants Pty Ltd (AMC) Hillgrove Mineral Resource Estimate (August 2017), Red River Resources (30 June 2021, 29 September 2020) Tonnages and grades are rounded. Discrepancies in totals may exist due to rounding. Gold equivalent (Au Eq.) has been calculated using the metal selling prices, recoveries and other assumptions contained in the AMC Estimate and included this announcement. For full disclosure details refer to ASX release “Red River Grows Hillgrove Resource to 1Moz Gold and and 90kt Antimony” dated 29 July 2021. Reported in accordance with the 2012 JORC code.

Gold Equivalent Calculation

Syndicate, Sunlight, Blacklode, Eleanora & Garibaldi

It is Hillgrove Mines Pty Ltd opinion that all the elements included in the metal equivalent calculation have a reasonable potential to be recovered and sold, based on previous mill production and sales. The gold equivalent (Au Eq.) and the cut-off are based on the following:

Metallurgical test work (carried out in 2016 and 2017) and mill production data demonstrate that total gravity & float recoveries of 91% Au and 86% Sb are achievable. The antimony recovery is applicable where Sb head grades are 1% or greater.  The majority of the Sunlight Resource contains an antimony grade of less than 0.5% and therefore antimony recovery is not expected from this material.

The Au Eq. value was calculated using a gold price of US$1,234 per oz and an antimony price of US$ 5,650 per tonne where:

  • Au Eq. (g/t) = (Au g/t) + (1.424 * Sb %)

Brackin’s Spur and Clark’s Gully

It is Hillgrove Mines Pty Ltd opinion that all the elements included in the metal equivalent calculation have a reasonable potential to be recovered and sold, based on previous mill production and sales. The gold equivalent (Au Eq.) and the cut-off are based on the following:

Metallurgical testwork (carried out in 2016 and 2017) and mill production data demonstrates that total gravity/float recoveries of 91% gold (Au) and 86% antimony (Sb) are achievable. Net smelter return calculations for the deposits indicate that Au Eq. grades above 4.8 g/t are economic, based on site costs, mill recoveries, off-site transportation and royalty costs.

Au Eq. was calculated based on commodity prices as at 18 July 2017. The individual grades, the assumed commodity prices and metal recoveries, and the Au Eq. formula are as follows:

  • Au Eq. (g/t) = (Au g/t * 91%) + (2.0 * Sb % * 86%)
  • Where 2.0 = (US$7,950/100) / (US$1,234/31.1035)
  • Gold price = US$1,234/oz and gold recovery = 91%
  • Antimony price = US$7,950/tonne and antimony recovery = 86%
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