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- R3D Resources (R3D) shares drop following the release of the company’s quarterly report for the period ending December 31, 2021
- The company drilled untested anomalies at its Tartana copper and zinc project located in North Queensland during the three-month period
- Scoping work to assess the proposed restart of the Tartana heap leach plant was also undertaken
- The company says copper sulphate production from the heap leach plant will potentially deliver “substantial cash flow”
- R3D shares down 7.1 per cent to 13 cents
R3D Resources (R3D) shares have fallen following the release of the company’s quarterly report for the period ended December 31, 2021.
The company carried out drilling of untested anomalies at its Tartana copper and zinc project located in North Queensland during the three-month period.
It completed a 1,667-metre, three-hole diamond drilling program, which it said intersected broad zones of low-grade copper mineralisation containing narrow higher-grade zones up to 4.5 per cent copper.
Scoping work to assess the proposed restart of the Tartana heap leach plant to produce copper sulphate was also launched.
The heap leach-solvent extraction-crystallisation plant produced copper sulphate for more than a decade prior to being placed on care and maintenance in 2014.
With a focus on refurbishment costs and the pre-production timetable, R3D Resources outlined the initial scoping project parameters and hopes to have the plant up and running by the end of the third quarter of this calendar year.
In an address to shareholders, Chairman Richard Ash said the economics of the plant to date suggested it was a promising opportunity that could provide “substantial cashflow” and enable the company to meet its exploration objectives.
R3D Resources ended the quarter with cash and cash equivalents of $1.3 million, which it estimated would provide funding for four quarters.
The company also exported 67,783 tonnes of zinc low-grade furnace slag-matte shipments from its Zeehan mining lease in Tasmania during the December quarter.
To date R3D Resources has shipped 241,450 tonnes of slag to South Korea in 12 separate shipments generating gross revenue of $13.85 million.
The company said further Zeehan slag exports would be contingent on the approval of a stage two permit application being assessed by the Environmental Protection Authority to allow crushing of and access to northern stockpile.
R3D shares shed 7.1 per cent to end the day’s trading session at 13 cents.
