R3D Resources Limited (ASX: R3D), a significant copper-gold explorer and developer in the Chillagoe Region in Far North Queensland, has received all necessary regulatory approvals required to commence processing on the northern stockpile of the company’s slag/matte project in Western Tasmania.
The company estimates there is approximately 120,000 tonnes of slag remaining to process and ship as part of Stage 2 of this Project. At an average 20,000 tonnes per shipment, we expect the Stage 2 to be completed by early 2023.
“Sales of our Zeehan Zinc Low Grade Furnace Slag/Matte have been an important cash flow generator to R3D,” Dr Stephen Bartrop, CEO and Managing Director, said.
Ongoing shipments at this scale will help with funding other operations including the restart of production at the company’s Tartana Copper Sulphate project – itself expected to soon generate positive cash flows – and planned high impact exploration activities.
The company is also pleased to confirm that it has successfully negotiated an increase in sale price with the metal and minerals trader MCC Non-ferrous Trading LLC (MCC) which will cover increased production and transporting costs, as well as contributing to future rehabilitation costs, further improving the economics and value proposition of these activities for the company.
Zinc Slag Project Background
The company’s wholly owned subsidiary, Intec Zeehan Residues Pty Ltd owns ML 3M/2017 located approximately 2.5km south of the township of Zeehan in Western Tasmania. The lease contains an old smelter site along with residue stockpiles of zinc-rich slag. In 2020 the company signed an agreement with MCC to export the slag and to date we have shipped approximately 290,000 tonnes to South Korea.
This arrangement is both profitable to R3D, provides an important source of near term stable cash flow to support the company’s broader activities including exploration. and will result in the historic smelter site being rehabilitated.
For further information please visit: https://tartanaresources.com.au/
