R3D Resources

Financials:

Primary ticker: ASX:R3D
Stage of development: Exploration, Development, Production
Primary minerals: Copper Gold, Zinc
Project to promote: Tartana Copper/Zinc Project
Project location: Australia
Website: tartanaresources.com.au

R3D Resources Limited is a significant copper-zinc-gold explorer and developer in the Chillagoe Region in North Queensland. On our Tartana mining leases we are restarting copper sulphate production using our heap leach – solvent extraction – crystallisation plant which is being refurbished after being held on care and maintenance since 2014. The production ramp up in 2023 and ongoing production is forecast to provide important cashflows which will supplement existing cashflows from the export of Zeehan low grade zinc furnace slag/matte operation in Tasmania.


Our significant exploration tenure in the prospective Chillagoe region covers a range of advanced and greenfield projects including the underlying porphyry copper mineralisation at Tartana and related zinc skarn mineralisation, copper/gold mineralisation at Cardross which is being upgraded to resource status, the Mountain Maid gold project where existing JORC 2004 resources are being upgraded to become JORC 2012 compliant through to exploration around the Ok Copper Mines and other copper/gold prospects in the Bellevue project and then to the large scale Bulimba/Beefwood project which exhibits large scale geophysical and geochemical targets which have never been drill tested.


R3D’s strategy is to become a self-funded and dividend paying explorer.

 

 

Cash: AUD$1.5M

Debt: AUD$0.4M


Major shareholders:

Bartrop Group 10.1%
Hardie Group 8.1%
SciDev Ltd 9.8%
Malaeb Group 5.4%

Management Profile

Stephen Bartrop – Managing Director 
Education: PhD, BSc(Hons), Grad. Dip. Securities Instit. MAusIMM, F Fin, MSEG, GAICD.

Steve’s professional experience spans more than 30 years covering periods in both the mining industry and financial sector. With a geology background, Steve has worked in exploration, feasibility and evaluation studies and mining in a range of commodities and in different parts of the world. In the financial sector, Steve has been involved in research, corporate transactions and IPOs spanning a period of more than 20 years, including senior roles at JPMorgan, Bankers Trust and Macquarie Equities.

Steve is also Chairman of Stibium Mining Pty Ltd, a company which operates a gold mine in South Africa, and is a director of South West Pacific Bauxite (HK) Ltd, a company developing a bauxite project in the Solomon Islands. He is also Chairman of Breakaway Investment Group and Breakaway Research.

What is your rationale for taking part 121 Mining Investment?

Lift profile of Company and attract new investors

What recent news would you like to highlight to investors attending?

Imminent commencement of copper sulphate production after a 18 month plant refurbishment phase. Forecast cash flows will supplement existing Zeehan zinc slag cash flows and lead to the Company becoming self-funding in terms of its future exploration activities.

What are your key goals in 3 months, 6 months, 12 months?

3 months – commence copper sulphate production and sales and continue Zeehan zinc slag export shipments

6 months – increase exploration activity across R3D’s exploration portfolio focussing on copper, zinc, gold and silver targets

9 months – Execution of drilling campaigns to test key targets

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Production delays due to unforeseen technical issues. We have recruited key personnel previously involved in the project.

What do you think makes your company such a compelling investment?

Our North Queensland exploration and mining tenure potentially covers the largest area in the prospective Chillagoe region where historical discoveries include Red Dome (2.5 Moz Au), Mungana (1 Moz Au) and King Vol (250kt Zn).

We have targets ranging from existing gold and copper resources, and historical workings to areas where surface outcropping mineralisation has not been tested at depth. Tenure includes mining leases, mining lease applications and exploration permits. Under the Bulimba agreement with Newcrest Mining Limited we have targets on 1250 km2 package where we are planning to fly a HeliTEM survey in early 2023 to identify conductors for drill testing.

Importantly, we are planning to become self-funding with cash flows from copper sulphate production on the Tartana mining leases and this will supplement and replace Zeehan zinc slag exports in 2023.

Hence, investors will have exposure to a high level of exploration activity in the prospective Chillagoe region in 2023 with minimal risk of being diluted by future equity raisings.

What are the top 3 key investor takeaways?

  1. Plans to be self-funded
  2. High level of exploration activity on a prospective tenement package acquired early
  3. Targeting key commodities including copper, zinc, gold and silver.