29 January 2021 Quarterly Activities and Cash Flow Report for the period ending 31 December 2020 ________________________________________________________________________________ Quarter Highlights
• Transformational December quarter for Red River as it becomes a diversified, multi-asset mining company • Production commenced at Hillgrove Gold Mine, NSW - first ore processed on 28 December 2020 • Stable base metal concentrate production continued at Thalanga Operations, QLD • Cash balance increased by $2.8 million to $15.3 million. Thalanga Operations • Quarterly copper concentrate production of 3,564 DMT, zinc concentrate production of 7,430 DMT and lead concentrate production of 1,914 DMT
Hillgrove Gold Mine
• First ore processed through Hillgrove Mill on 28 December 2020 • Red River is processing ore from Bakers Creek stockpile in Stage 1 Operations • Work underway to recommence Hillgrove’s underground mining in Stage 2, restart expected CY21 • Initial drilling program at Curry’s Lode target successfully completed; more exploration underway to grow 692,000oz Hillgrove gold resource.
Exploration & Development Activities
• Sampling and mapping at the Orient Silver-Indium Project confirmed the presence of extensive high-grade epithermal silver-lead-zinc mineralisation with associated large scale alteration systems • Orient East confirmed as a high priority bulk tonnage silver mineralisation drill target
Corporate
• $32.5 million revenue generated from base metal concentrate sales • $5.4 million invested in capital development, primarily at Far West • $1.5 million invested in restart activities at Hillgrove • $0.6 million invested in exploration activities at Thalanga and Hillgrove Operations • C1 cost of US$ (0.09) per pound of payable zinc metal • C2 cost of US$ 0.24 per pound of payable zinc metal • C3 cost of US$ 0.50 per pound of payable zinc metal • Thalanga Operations EBITDA of $11.3 million • Cash balance of $15.3 million plus financial assets of $12.9 million (cash backed security bonds and deposits) as at 31 December 2020.
RVR Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held