Highlights

• At the Tartana Copper Sulphate project, R3D Resources has started drilling to define northern oxide mineralisation and commissioned plant refurbishment.
• At the Queen Grade Zinc project, the first hole, TDH 24, has returned an encouraging intersection of 12 m @ 10.7% Zn.
• Low-grade zinc furnace slag/matte shipments re-commenced with a 10,000-tonne shipment in September, and the second 20,000 shipment shipped on 29 October 2022.
• The company appointed Mr Jihad Malaeb as chairman.

R3D Resources (ASX:R3D), a major copper-zinc-gold explorer and developer in the Chillagoe region in Far North Queensland, has published its quarterly report for the period ended 30 September 2022.

The company witnessed an action-packed quarter. At Tartana, the company was primarily focused on the ongoing refurbishment of the copper sulphate plant and drilling Tartana copper oxide, Tartana copper primary (chalcopyrite) and Queen Grade zinc mineralisation.

R3D has resumed exporting low-grade zinc furnace slag/matte exports from Tasmania. Further on the exploration front, the company is strengthening the Beefwood and Nightflower exploration projects.

Tartana Copper Sulphate Project

Tartana is the flagship project of R3D, located in North Queensland, Australia. Currently, the company is focused on refurbishing the existing copper sulphate plant to deliver a sustainable cashflow to finance its exploration activities. The company is planning to start production in December. Below are some of the key items:

Data and image source: Company update
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The company has also started a 1340m RC drilling program focused on the Northern oxide zone for future copper sulphate production.

Queen Grade Zinc Mineralisation

The Queen Grade zinc skarn mineralisation lies within the Tartana mining leases.

During the reporting period, R3D conducted drilling on the Queen Grade Zinc project, and received encouraging intersection from the first hole, TDH 24. There was mineralisation continuity in the intersection, which remains open at depth.

The company is gathering all the historical data with the new drilling data to assess a maiden resource and confirm mineralisation trends.

Zeehan Zinc Low-grade Furnace Slag/Matte

The Zeehan Zinc Slag project is located in Western Tasmania, Australia. Following the approval of the grant for the Stage 2 permit, the company re-started low-grade zinc furnace slag/matte shipments with a 10,000-tonne shipment in September and the second 20,000-tonne shipment on 29 October 2022.

Tartana New Copper Target

Image source: Company update

The company completed a two-hole program to test a new copper target identified from historical IP and resistivity anomalies, surface mineralisation trends and historical drilling data, including the company’s recent scout drilling program completed in 2H CY2021.

Beefwood Option and Bulimba Project

R3D intends to exercise its option over the Beefwood project (EPM 26399). The company successfully renegotiated the exercise price and reduced it 50% to AU$192,500. The transfer of the tenement is now in progress and awaiting the ministerial nod.

Nightflower Silver Project

The Nightflower lode is a high-grade silver-lead-zinc lode, stretching more than 2.3 km. In June 2022, the company estimated a revised exploration target for the project. 

In August, the company conducted rock chip sampling around historic mines. The samples generated maximum values of 60.1% lead, 21.1% zinc, 2600 g/t silver, and 1.51 g/t gold, confirming the high-grade nature of the deposit.

Following the re-estimation of the exploration target, the company decided to exercise its option to purchase the Nightflower Silver project (EPM application 27959) at a negotiated reduced exercise price of AU$250,000.

Financial update

R3D recently appointed Mr Jihad Malaeb as chairman of the company, who provided a working capital loan note of AU$500,000. Upon shareholder approval, the amount will be converted into R3D fully paid ordinary shares at AU$0.15 per share.

The company ended the quarter with a cash balance of AU$0.772 million, including AU$0.48 million received from Mr Malaeb in advance for finalising the terms of the loan note.

At the time of writing this article, R3D’s shares were trading at AU$0.085 apiece.