R3D Resources raring to go at Chillagoe

R3D Resources will plunge into a drilling program at the former Tartana copper operation near Chillagoe, targeting extensive mineralisation under the old open pit, after a relisting on the ASX this week. The company also aims to restart copper sulphate production at the site, potentially in early 2022, to provide an ongoing cash flow. R3D Resources began trading on the ASX today (July 22) after completion of a $4.25 million capital raising and a relisting that involved the friendly takeover of Tartana Resources. Stephen Bartrop, the chairman of Tartana Resources and now managing director of R3D, described it as an exciting development for the Chillagoe region. "We're looking at the restart, so obviously there's employment and activity revenue coming into the region," he said. "But also, we are very active explorers and we have an excellent geological team. The opportunities for us to progress some of these projects are very exciting." Related: Tartana in deal to add Newcrest project to its assets Tartana has accumulated a range of assets in the Chillagoe region, including the Tartana mining lease - with an established heap leach-solvent extraction-crystalisation plant. Mr Bartrop said work to restart that operation would be completed over the next six months with a view to beginning production early next year. The operation would initially focus on copper remaining in ponds and on heap leach pads at the site. While the operation is only likely to employ about 10 people, it will be a significant step for the company, providing cash flow along with its exports of Zeehan furnace slag from Tasmania. The Tartana plant produced copper sulphate for about a decade up to 2014 and is currently on care and maintenance. Copper sulphate is used as a reagent in mineral processing and Mr Bartrop said the North's mining industry was currently relying on imported product. The Tartana product is so pure that it is also suitable for stock feed. But the larger prize R3D has its eye on lies beneath the shallow oxide copper mineralisation that has been used as feed for the Tartana plant. It plans to start drilling next month to test a large copper-gold porphyry target beneath the existing pit and extending to the north - an exploration target estimated at 47 million tonnes grading at 0.8 per cent copper (excluding potential byproducts). Mr Bartrop said this held the potential for a bulk copper mining operation bringing about 10 times the annual revenue of the copper sulphate operation. "Where we've been very lucky is we are exporting the Zeehan slag out of the port of Burnie and that's providing a cashflow and if we also bring in the copper sulphate production that will provide an ongoing cahsflow," he said of the R3D business. "What it means is the company can be self-funding going forward - and we have a really exciting portfolio of projects including this deeper copper exploration target at Tartana." Other activities that R3D will be pursuing include:• Geophysics to prioritise the multiple copper prospects on the Bellevue and Dry River tenements,followed by drilling• Drilling down dip extensions of the Nightflower silver mineralisation• Progressing the Mountain Maid gold project and Cardross copper project mining lease applications• Conducting an airborne gravity and EM surveys over Newcrest’s extensive 1,250km2 Bulimbaproject under the Bulimba agreement• Reconnaissance exploration on the Dimbulah porphyry copper project Heap leach pads at the Tartana site with plant and accommodation camp in the background.

R3D Resources raring to go at Chillagoe

Industry Queensland

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