Materials

R3D Resources hits massive sulphides at Queen Grade zinc project

Mon 11 Jul 22, 11:32am (AEST)
A drill rig in the Australian outback
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Key Points

  • R3D’s share price is up 12% to 14c in morning trades
  • Investors paying attention to massive sulphides found in first diamond drill core at zinc project
  • Queen Grade is located in Northern Queensland

R3D Resources’ (ASX:R3D) share price has jumped 12% in morning trades to 14c as the company hits massive sulphides in its maiden diamond drill run. 

The drillhole was sunk at the Queen Grade zinc project target in Northern QLD. 

Sulphide mineralisation was clearly visible in a 12m long core sample downdip of previous drilling, providing evidence for the extension of mineralisation on-site. 

How far and in which direction that mineralisation extends is too early to be clearly summarised, and investors should note today’s announcement does not contain any information on grade of commercial metals.

Sulphides visible in diamond cores from Queen Grade (R3D Resources)
Sulphides visible in diamond cores from Queen Grade (R3D Resources)

Getting straight on with it 

R3D’s geos and drill team are now to test a further 65m below the current intersection, to figure out how deep sulphides extend and what else the geology underground may contain. 

Today’s 12m core section was retrieved from 160m underground. 

Currently, the company awaits assay results for 106 RC drilling samples sent off to the laboratory, which R3D is hopeful will return evidence of gold and silver.

R3D’s geos further estimate mineralisation being targeted in the diamond drill run “dips 70 degrees west and is hosted in carbonate rich units.” 

Where is Queen Grade? 

R3D’s Queen Grade project is located in the boundaries of licence ML4820, which is called Tartana North. 

Previous companies have sunk diamond drill holes on-site, but today’s is the first for R3D. Dominion Mining Limited has, in the past, encountered gold and silver anomalies on-site. 

Information for all previous drill holes testing oxides and shallow sulphides was included in R3D’s prospectus all the way back in 2011, with little activity in between then and now. 

R3D notes mineralisation at Queen Grade is similar to that found at the King Vol zinc mine some 500m westward. 

R3D's share price performance has outperformed the materials index for nearly all of the last three months
R3D's share price performance has outperformed the materials index for nearly all of the last three months

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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