Red River Resources Share Price Continues Up Ahead of Production
The Red River Resources Ltd [ASX:RVR] share price has had a stellar November — and October for that matter — ahead of production restarting at its Hillgrove Gold Project in NSW.
Through the past six or seven weeks the company has released a string of positive results, from record copper production last quarter (and another potential record quarter on the way), to delivering solid economics at its Hillgrove operations, to posting some high-grade silver results.
At time of writing, the RVR share price is up 3.51% or 1-cent to trade at 29.5 cents per share.
Hillgrove could be looking at an upgrade
RVR’s Hillgrove gold project is scheduled to restart this year after the company recently acquired it.
The restart will occur in tiers, with the first phase to begin processing historic tailings on site, and the second phase seeing underground mining start up.
Recent drilling at Hillgrove could further add 426koz of contained gold on the project.
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RVR announced today they had completed seven drill holes at Curry’s Lode at Hillgrove, with all holes intersecting high-grade gold and tungsten mineralisation.
- 40m at 9.2 g/t gold (Au) and 0.35% tungsten (WO3) from 47.60m
- 0m at 6.5 g/t Au, 1.4% antimony (Sb) and 0.26% WO3 from 44.0m
- 15m at 5.8 g/t Au, 0.1% Sb and 0.12% WO3 from 34.85m, including 1.30m @ 0.1% Sb, 0.23% WO3 and 12.2 g/t Au from 35.60m
- 00m at 3.0 g/t Au, 0.6% Sb and 0.08% WO3 from 27.0m, including 0.50m @ 19.7 g/t Au, 5.8% Sb and 0.30% WO3 from 27.60m
The explorer said the mineralisation intersected at Curry’s Lode is open in all directions and notes that the drilling has intersected wide zones of mineralisation associated with high-grade veins.
What are Red River’s plans for Curry’s?
As it stands, the Hillgrove mine has an operational life of five-plus years.
In my opinion, that means they think they can comfortably operate the mine for five years, but anything past that horizon is a little fuzzy.
Meaning they need to find more gold to keep the mine going past the five-year mark.
Curry’s Lode could potentially do just that.
RVR said they are currently doing a detailed review of the results to identify target zones of higher-grade mineralisation for a 2021 drilling program.
So, we could see the mine’s life extended if there is a significant amount of gold and gold equivalent at Curry’s.
What will also help push RVR along is the gold price. If you’ve been watching, you’ll have noticed the price of gold took a slip recently. However, plenty of upside still remains in the gold price, especially with Australia shaping up to be the new gold capital of the world. 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