Doing some research on Highway/Reward deposits - they historically mined 3.8Mt @ 6.2% Cu & 1g/t Au (incl. 0.75Mt @ 8.7% Cu) and it also seems like there was further ore below the material that was mined via open pit. This historically mined material works out to approx. $2B in ground value at current prices.
The 3rd party owner of the Mining Licenses seem to be owned by Vedanta (diversified resource company with a global market cap of $45B) – who owned the Thalanga mill previously and treated Highway/Reward ore prior to the sale to Kagara in 2006.
http://www.mining-technology.com/projects/thalanga-zinc-project-queensland/
http://www.vedantalimited.com/media/111567/tcm_financial_report_2017_director_signed.pdf
https://www.asx.com.au/asxpdf/20150519/pdf/42yng2f212rgkf.pdf
Also worth noting some of the large gold mines in the area
Over the past 20-30 years there has been a lack of exploration in the region to discover the next large deposits:
Vedanta – focus was on mining and not exploration, many other larger projects
Kagara – too many other larger projects to focus on developing new projects around Thalanga
Also since 2015 Red River has put exploration spending largely on hold in order to conserve money to restart production and rightly so. The main focus of the exploration in the past few years has been around existing deposits and increasing the potential resource around Liontown East.
Now that they have acquired a large land area and cash flow positive am very much looking forward to the results from their regional exploration efforts over the next 6-12 months. Any upside in exploration is not priced into the share price at present and neither is the fact that they are in production for that matter.
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