Red River Resources Limited (ASX: RVR) is pleased to update the market on progress at the Hillgrove Gold Project, with gold production to resume at Hillgrove by the end of CY2020.

Red River's Managing Director Mel Palancian said, 'Gold production at Hillgrove will transform Red River into a diversified, multi-asset gold and base metals producer, with two Australian operations that have substantial growth upside.

'Having acquired the Hillgrove project in August 2019, we have been methodical in our approach to restarting gold production to ensure we understand our opportunities and how best to leverage them. Starting operations by producing gold dore from waste at the Bakers Creek stockpile provides us with a low-cost restart plan. Then we will follow with Stage 2, which is to restart underground operations from existing development next year.

'We will continue to explore at Hillgrove for gold and critical metals, including antimony and tungsten.'

Hillgrove Gold Project

The Hillgrove Gold Project is about 30km from Armidale in New South Wales. To date, Hillgrove has produced more than 730,000 ounces of gold (in bullion and concentrates), more than 50,000 tonnes of antimony (as metal and in concentrates) plus material amounts of by-product tungsten (in concentrates). The Hillgrove Gold Project has a substantial high-grade JORC 2012 Compliant Mineral Resource of 5.0Mt @ 4.3 g/t Au & 1.5% Sb (6.4 g/t Au Eq.) (692koz gold & 75kt antimony).

The Hillgrove site includes a 250ktpa capacity processing plant, comprising a selective flotation circuit (capable of producing antimony-gold and refractory gold concentrates), an antimony leach/EW/refining & casting plant, a gold cyanide leach circuit & gold room plus a pressure oxidation circuit. The site also has a fully HDPE (highdensity polyethylene) lined modern tailing storage facility, which was constructed in 2006 and has approximately two years of production storage capacity.

All of Hillgrove's electricity requirements are sourced from a 66kva grid connected power supply from Ergon Energy with 11kva site power reticulation. Water is sourced from storage dams and underground workings. Hillgrove has all the office facilities required for operations, including an administration office, mining operations offices, maintenance offices, workshops (heavy vehicle, light vehicle and boilermaker's workshops), process plant offices, metallurgical laboratory building, first aid building, stores warehouse and core shed and yard. Red River will operate Hillgrove Gold Project as a residential site, with the majority of the workforce likely to reside in Armidale.

Stage 1 (Bakers Creek Stockpile) Restart

Site activities at Hillgrove continue to ramp up with restart on track and budget for first gold production by year end. The Stage 1 Restart will be based on treating the Bakers Creek Stockpile (225kt @ 2.5 g/t Au) through the Hillgrove Processing Plant to produce gold dore. Production is expected to commence by end CY2020 with an operational life of approximately 12 months. The gold will be recovered to a gravity gold concentrate and a flotation gold concentrate which will then be leached on site to produce dore, with gold recovery to dore estimated to be 75-80% after ramp up. Stage 1 has an estimated pre-production capital expenditure of approximately $5.0 million.

About Red River Resources (ASX: RVR)

RVR is seeking to build a multi-asset operating business focused on base and precious metals with the objective of delivering prosperity through lean and clever resource development. RVR's foundation asset is the Thalanga Base Metal Operation in Northern Queensland, which was acquired in 2014 and where RVR commenced copper, lead and zinc concentrate production in September 2017. RVR has recently acquired the high-grade Hillgrove Gold Project in New South Wales, which will enable RVR to build a multi-asset operating business focused on base and precious metals. Gold production at Hillgrove is scheduled to restart at the end of CY2020.

Contact:

Mel Palancian

Tel: +61 3 9017 5380

Email: mpalancian@redriverresources.com.au

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