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R3D Resources Limited (ASX: R3D) (the Company), is pleased to advise that it has produced its first shipment of Copper Sulphate Pentahydrate (Copper Sulphate) which is ready for collection at the Tartana mine site. Minimum shipments are 28 bags weighing approximately 1.2 tonne each. The Copper Sulphate comprises 25% Copper and is priced at 25% of the LME copper price plus a premium.
HIGHLIGHTS:
- Production of 28 bulka bags (approximately 34 tonne) of Copper Sulphate Pentahydrate has been completed at Tartana Plant, with this production meeting the minimum shipment requirements
- Offtaker, Kanins International, will purchase the shipment at mine gate, providing important cash flow
- Production is expected to continue early next week again, pending supply of reagents and additional pumps
- Profit margins continue to increase with Copper price improvement which is currently ~US$9000 per tonne
- First $500k of the Rights Issue has been underwritten by Breakaway Investment (controlled by Stephen Bartrop) and is presently scheduled to close on Wednesday, 10 April 2024
R3D Managing Director, Stephen Bartrop, commented:
“It is very exciting to announce the milestone of the first shipment of Copper Sulphate which is ready for pick up by our offtake partner Kanins. This is an important milestone and it means that Tartana’s Copper Sulphate is now entering the Australian technical grade market.
“We are also encouraged with the increase in the copper price which is now around US$9,000 per tonne. We have a positive outlook for the Copper market, influenced by electric vehicle market and energy transition. A potential appreciating Renminbi will also make it cheaper for Chinese consumers.”
The Company continues to expect Kanins to pay for the product at mine gate, pending arrangement of transportation of the product. The Walsh River crossing nearest to the Tartana site continues to be at a level making truck transportation difficult – both for our product to leave the site, and for input materials to be received.
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This article includes content from Red Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
R3D:AU
Labyrinth Reinvigorates Exploration at Comet Vale
Key Points
- At the beginning of the quarter, Labyrinth announced the intention to divest Labyrinth Gold Project to Gold Projects WA Pty Ltd (‘GPWA’) for a cash consideration of USD $3,500,0001;
- Post-quarter LRL announced that the Project Sale Conditions were satisfied or waived and in addition2:
- the deposit of USD$175,000 paid by the purchaser, GPWA, to Labyrinth is now non- refundable in all circumstances;
- settlement is to occur by 15 May 2024; and
- interest of 6% per annum, to be accrued from 29 February 2024.
- Labyrinth announced the successful negotiation amending the terms of the Project Acquisition Agreement with G.E.T.T. Gold Inc. with respect to the obligation to deliver a 450 ounce Physical Gold Payment by 31 December 20233;
- The payment reduced to 200 ounces with the remaining 250 ounces to be paid upon profitable production at Labyrinth Mine (to be assumed by GPWA as part of Share Purchase Agreement (‘SPA’));
- Labyrinth received a significant tax refund of circa $470k in relation to Canadian resource expenditure4.
- At the beginning of the quarter, the assay results from a field program completed at Comet Vale in September 2023 were announced5:
- LCV0029: 129 g/t Au, 0.1% Cu
- LCV0033: 39.1g/t Au, 6.3% Cu and 271 g/t Ag
- LCV0028: 28.9 g/t Au, 3.0% Cu, 0.07% Co and 0.5% Ni
- LCV0017: 3.6 g/t Au, 8.4% Cu and 9.2 g/t Ag
- LCV0021: 8.5 g/t Au, 0.3% Cu
- The rock chips represent part of a nearly 3km corridor of high-grade gold, copper, cobalt, nickel, tungsten and silver.
Figure 1 – Comet Vale Project location, WA
COMET VALE
During the quarter, significant focus has been placed on the divestment of Labyrinth Gold Project in Canada. Meanwhile, targeting and planning of exploration activities is well underway at Comet Vale. Strong performance in the gold price this quarter shows no signs of slowing, bolstering Labyrinth’s interest in Comet Vale Gold Project. With gold and base metal potential still high, the Company is leaving no stone unturned in finding suitable drill targets to truly test the potential.
LRL has previously announced the commitment to refocus exploration activities at Comet Vale Project near Menzies, Western Australia. The project is a joint venture project between Labyrinth (51%) and Sand Queen Gold Mines Pty Ltd (49%). In 2023 an updated Mineral Resource Estimate was completed on the Comet Vale Underground (‘UG’) and Open Pit (‘OP’) historic resource (see Table 1 and 2)6. Figure 2 demonstrates the substantial Resource growth potential of the currently only shallowly defined Sand George mineralisation.
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This article includes content from Labyrinth Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.