The deal will see Red River selling 100% of Hillgrove mine’s gold concentrate to Glencore.
Red River began gold production from Bakers Creek stockpile material in the first stage of the Hillgrove project in December 2020. It also recently trucked its first load of gold concentrate from Hillgrove mine.
Red River managing director Mel Palancian said: “It’s great to have the support of Glencore for Hillgrove given our strong four-year working relationship to date. Also to commence trucking our gold concentrates to add to our Hillgrove gold dore revenues.
“We are focused on the commercial ramp-up at Hillgrove whilst also increasing our JORC 2012 resource base.”
Red River acquired the Hillgrove Gold Mine in August 2019. As a result of low commodity prices, the former owner had placed the mine in care and maintenance in 2015/2016.
Following a detailed restart study, Red River planned a staged restart approach at the mine for generating low operating risk and capital cost.
Glencore already has an offtake agreement for copper concentrate produced from Red River’s Thalanga base metal operations in Queensland.
Located approximately 55km west of Charters Towers in Northern Queensland, the Thalanga operation comprises a 650ktpa capacity milling facility for producing separate copper, lead and zinc concentrates.
While the copper concentrate produced at Thalanga is sold to Glencore, the lead and zinc concentrates are sold to Trafigura via the Port of Townsville.
The mine has so far processed more than one million tonnes of ore from the West 45 and Far West deposits.