The Thalanga zinc project in north Queensland is continuing on its course to production in the second half of this year, with Pybar Mining Services awarded the West 45 underground mining contract.
Pybar, the third largest underground hard rock mining contractor in Australia, is expected to begin to mobilise to site this fortnight.
Meanwhile project owner Red River Resources has reported high-grade assay results from drilling at its Liontown East target, which is also part of the Thalanga zinc project.
“This is an exciting time for Red River, with the fully funded Thalanga project restart on course to commence production in 2H 2017, and we continue to drill the exceptional high grade Liontown East discovery, with LTED06 in progress,” Red River managing director Mel Palancian said.
Red River Resources is restarting the Thalanga processing plant, formerly run by Kagara, with an expected pre-production capital cost of $17.2 million to bring the zinc mining and processing operation online.
Annual average production is expected to be 21,400 tonnes of zinc, 3600 tonnes of copper, 5000 tonnes of lead, 2000 ounces of gold and 370,000 ounces of silver in concentrate over an initial mine life of five years.
However Red River says there is outstanding extension potential.