R3D Resources (ASX: R3D) is honing in on producer status as “significant progress” is being made for the restart of the copper sulphate plant at Tartana, in North Queensland.
The company said that recently completed works include the finalisation of detailed flow sheets, component listings and electrical drawings to facilitate the plant’s refurbishment over the next few months.
For the uninitiated, the plant's previous owner and operator produced 1.2m tonnes of copper oxide between 2004 and 2013. The plant has been in care and maintenance since 2014.
“Our refurbishment timetable remains on track, and we expect the market confidence will increase in the project as we approach production in 1H FY2023,” said Managing Director Steve Bartrop.
“The current conflict in Ukraine has placed constraints on the supply of copper sulphate worldwide and this is likely to facilitate the placement of our future production to customers wishing to diversify their supply sources,” said Bartrop.
The initial scoping study for the Tartana plant include:
Production rate: 6,000 - 7,000 tonnes per annum
Refurbishment capex and working capital: $1.4m
Indicative copper sulphate price: $3,513 a tonne
Indicative costs: $854 a tonne
Despite a market cap of just $9m, R3D operates two emerging cash generating projects - the Tartana plant to produce saleable copper sulphate and the Tasmanian Zinc Slag Project- which has exported 240,000 tonnes of low grade furnace slag to South Korea.
R3D has a drilling program planned for Tartana in April, which is expected to drive an upgrade of resources and allow the reporting of ore reserves.
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