Red River Resources’ Share Price Surge Hints of Another Record Quarter
We’ve talked a lot about the Red River Resources Ltd’s [ASX:RVR] share price over the past few months here at The Daily Reckoning Australia, and for good reason.
The explorer/producer offers some interesting investment prospects; it has a gold mine that is soon to begin production and a fully operational base metals project.
Today, the share price has continued its upwards momentum with RVR announcing they’ve hit some high-grade ore at their Far West underground mine, part the Thalanga Operations in Queensland.
When we covered RVR last month, the miner had just announced record production at the Thalanga Operation, setting a new 52-week high at the time.
At time of writing the RVR share price is up 7.14% to trade at 22.5 cents per share.
Could we see a new record this quarter?
RVR said today that it had intersected exceptionally high-grade polymetallic ore on the 620-level in the Far West underground mine.
Source: Red River Resources
To get you up to speed, polymetallic deposits are known to be significant sources of copper, gold, silver, lead, manganese, and zinc.
With the ore minerals mostly contained in sulphides.
Cut 26 in the 620-level, seen in the bottom left of the above figure, intersected massive and semi-massive sulphide ore.
The cut returned grades of 4.7m at 4.9% Cu, 6.2% Pb, 22.0% Zn, 168 grams to tonne (g/t) Ag and 1.0 g/t Au.
Cut 36, seen in the centre of the figure, retuned grades of 3.1m at 3.5% Cu, 6.4% Pb, 12.7% Zn, 99 g/t Ag & 0.6 g/t Au.
Discover why this gold expert is predicting a HUGE spike in Aussie gold stock prices. Download your free report now.
If you don’t follow mineral explorers or miners very closely, this information might not mean much.
So, look at it this way.
The global average copper grade is around 0.62%, RVR returned intercepts of 4.9% and 3.5%, respectively.
There can be some contention around average mineral ore grades, but if we go by the graph above we can see a clear downward trend in ore grades.
Though this chart ends around 2010, zinc ore is sitting at ~4%, meaning it could be even lower today.
What’s next for the Red River share price?
This is certainly pleasing news for RVR shareholders, although the miner failed to mention how today’s news will materially impact its operations.
Right now, it is difficult to tell whether this is an anomaly or not.
In my opinion, the share price is waiting on news of the Hillgrove gold mine restart.
If all goes well, then we could see this upwards momentum continue into the new year.
With the gold price heating up again, Australia is looking to knock China off the top spot as the undisputed global leader in gold exploration, mining and production. Which could have big impacts on stocks like RVR. In her latest report, gold expert Shae Russell breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.
For The Daily Reckoning Australia