R3D Resources on-track to produce copper sulphate in 12-months

Wed 23 Mar 22, 1:24pm (AEDT)
An image depicting copper-coloured mineralisation within a host rock
Source: iStock

Key Points

  • R3D will kick off refurbishment activities at the Tartana Copper and Zinc Project
  • Production is set for the second-half of FY22 with approvals already in place
  • The plant is targeting 6,000-7,000 tonnes per annum with forecasted copper sulphate prices around US$3,500 a tonne

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. 

Tartana Copper and Zinc Project - R3D Resources
Heap leach pads and crystallisation plant (Source: R3D Resources)

An opportune time

“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.

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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