R3D Resources : Update on Nightflower and Zeehan Projects - bdsthanhhoavn.com

R3D Resources : Update on Nightflower and Zeehan Projects







R3D Resources Limited | ACN: 111 398 040 | ASX: R3D

169 Blues Point Road, McMahons Point NSW 2060 Australia | Tel: +61 2 9392 8032

6 June 2022

EPA Allows Progress of the Stage 2 Zeehan Application

  • Tasmanian EPA has progressed the Stage 2 Zeehan Application to advertising.
  • Further Information provided on the Nightflower Exploration Target including the addition of antimony

R3D Resources Limited (ASX: R3D) (R3D or the Company), a significant copper-gold explorer and developer in the Chillagoe Region in Far North Queensland, is pleased to announce that the Tasmanian EPA has agreed to allow the Company to progress its Stage 2 application to the advertising stage. The Stage 2 application involves the potential granting of a permit to access the Northern Zinc Slag stockpile and to crush material from both the Northern and Southern stockpiles. Earlier this year, MRT granted permission to remove some minor heritage items from the Northern Stockpile area.

In addition, the Company has provided additional information with regards to the Digger Lode Exploration Target as part of the Nightflower Silver Project as advised to the ASX on 2 June 2022. The announcement quoted Ag Equivalents without stating the metal prices and metal recoveries used in the calculation. These parameters are outlined in this announcement although the target has now been estimated using average metal prices and exchange rates for 2021 and incorporates antimony grades which are material in the mineralisation style. Both of these factors have resulted in an adjustment to the exploration target, however as stated, the exploration target is only conceptual in nature and further exploration may not result in the delineation of an economic resource. It also doesn’t include the Terrace lode which represents the southern portion of the Nightflower silver project.

R3D Managing Director Stephen Bartrop advises: “Entering the 28-dayadvertising period is an important step in progressing the Stage 2 Application to potentially allow for the further exports of Zeehan low grade furnace/slag matte with the most recent shipment being completed in early May 2022. Elsewhere, we have updated the Digger Lode Exploration Target in the Nightflower Silver Project using average 2021 commodity prices as well as incorporating antimony grades from historical ‘resource’ reporting. Antimony is a deemed critical mineral by the Australian Dept. Industry, Science, Energy and Resources.”

Nightflower Silver Project History

The Company reported on the Nightflower project on the 2 June 2022 including details of a revised Exploration Target. The project is located 40 km north of Chillagoe and is part of R3D’s portfolio of projects in this region of Far North Queensland.

Nightflower has been known to contain high silver grades and has a colourful history with discovery outcrop pictured below in 1923. Apparently Messrs Archer and Stewart located the Nightflower in June 1923 and by October 1923 the then Premier of Queensland visited the Nightflower Lode to highlight the importance of the silver-lead find to the Chillagoe district at the time. On his return to Brisbane the Premier mentioned in an interview that the ore at Nightflower was very rich and a truck-load treated at Chillagoe gave about 30% of lead and 40 ounces of silver to the ton (Source: Qld Govt Mining Journal Vol XXIV, Oct 1923).

Figure 1. Early picture of the Nightflower gossan outcrop. Source: Qld Govt Mining Journal Vol XXIV, Oct 1923

Revision of the Digger Lode Exploration Target

In the announcement on the 2 June 2022 the Company presented an Exploration Target which included Silver Equivalents (Ag Eq) without providing the assumptions used in the Ag Eq formula. The Exploration Target relates to the Digger Lode and in this announcement has been referred to as the Digger Exploration Target. It differs from the Terrace Lode, a southern extension of the Digger Lode, and both are part of the Nightflower Silver Project.

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Recovery Assumption

The following table outlines the recovery assumptions presented in Askew Report on Stage 2 Reserves (1991) and which was commissioned by Risla Enterprises Pty Ltd. These recoveries have been used by R3D in estimating the factors used in the Ag Eq estimations.

Expected Recoveries as reported by Askew 1991

Recoveries

Pb to Pb concentrate

91%

Ag to Pb concentrate

90%

Au to Pb concentrate

70%

Zn to Pb concentrate

30%

Sb to Pb concentreate

80%

Pb Concentrate grade

42%

Pb

Based on run of mine ore with the following head grades:

Pb

5.30%

Ag

183 g/t

Au

0.7 g/t

Zn

3.0%

Sb

1.0%

Figure 2. Metal recoveries. Source: Askew 1991 in Surestone Pty Ltd’s First Annual Report on EPM 6899 by Brett Duck in 1991.

The Pb concentrate is expected to be a saleable product and will the contained metals listed above being payable.

Metal Prices Assumed

The metal prices and AUD/USD exchange rate listed below are the average prices for 2021 (which varies from the spot prices used in the Ag Eq estimates reported in the 2 June 2022 announcement). A factor relating to the value of 1 gram of Ag has been estimated for each metal based on these average metal prices and the earlier recoveries.

Metal

Recovery

Average Metal Prices – 2021

AUD/USD

Factor

(Source: Askew 1991)

(US$/oz or US$/t)

Ag (g/t)

90%

25.2

0.736

1

Au (g/t)

70%

1800

0.736

56

Cu (%)

80%

9297

0.736

10

Zn (%)

30%

2991

0.736

1

Pb (%)

90%

2188

0.736

3

Sb (%)

80%

9921

0.736

11

Figure 3. Average 2021 metal prices and exchange rate. Source: LME, Bloomberg, SP Angel

Digger Lode Exploration Target – Revised

The following table provides the average metal grades at various cut-off grades using the wireframe modelling outlined in ASX announcement on the 2 June 2022.

Cutoff

Ag grade (g/t)

Au grade (g/t)

Cu %

Pb %

Zn %

Sb %

Ag (g/t)

0

67

0.34

0.1%

1.8%

0.9%

1.0%

25

89

0.42

0.1%

2.3%

1.1%

1.0%

50

130

0.37

0.2%

3.5%

1.4%

1.0%

75

142

0.36

0.2%

3.8%

1.5%

1.0%

100

146

0.35

0.2%

3.9%

1.5%

1.0%

Figure 4: Metal grades at various cut-off Ag Eq grades

Cutoff

Tonnage

Ag grade (g/t)

Au grade (g/t)

Ag Eq (g/t)

Ag Eq Moz

Ag (g/t)

0

7,332,131

67

0.34

105

24.8

25

5,360,372

89

0.42

134

23.0

50

3,243,848

130

0.37

177

18.4

75

2,873,043

142

0.36

189

17.4

100

2,749,081

146

0.35

193

17.0

Figure 5. Grade -Tonnage estimates at various cut-off grades for estimating the Digger Lode Exploration Target (Source: BMS). Note that the potential quantity and grade is conceptual in nature, and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Tables 1 & 2 JORC 2012 are available on our website and in the Prospectus. Comp Person: BMS – Geoff Reed, R3D – Tom Saunders. Ag Eq = Ag + (Au*56) + (Cu*10) + (Pb*3) + (Zn*1)+ (Sb *11).

Exploration Target Tonnage

Ag Grade (g/t)

Au Grade (g/t)

Ag Eq (g/t)

Ag Eq Contained Metal

Low

High

Low

High

Low

High

Low

High

Low (Moz)

High (Moz)

2,749,081

5,360,372

89

146

0.35

0.42

134

193

17.0

23.0

Figure 6. Digger Lode Exploration Target for the Digger Lode. Note that the potential quantity and grade is conceptual in nature, and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Tables 1 & 2 JORC 2012 are available on our website and in the Prospectus. Comp Person: BMS – Geoff Reed, R3D – Tom Saunders. Ag Eq = Ag + (Au*56) + (Cu*10) + (Pb*3) + (Zn*1)+ (Sb *11).

This announcement has been approved by the Board of R3D Resources Limited.

Further Information:

Stephen Bartrop

Managing Director

R3D Resources Limited

  1. + 61 408 486 163
  1. + 61 2 9392 8032

About R3D Resources Limited

In July 2021 R3D Resources Limited acquired Tartana Resources Limited, a significant copper-gold explorer and developer in the Chillagoe Region in Far North Queensland. R3D owns several projects of varying maturity, with the most advanced being the Tartana mining leases, which contain an existing heap leach – solvent extraction – crystallisation plant. Work has commenced to restart this plant to provide future cash flow through the sale of copper sulphate. In Tasmania, Tartana has secured permitting to excavate and screen for export low-grade zinc furnace slag/matte from its Zeehan stockpiles in Western Tasmania and has been shipping zinc slag to South Korea. The next stage in this project requires Stage 2 permitting to crush the slag and access the northern stockpile.

These two projects have the potential to generate a cash flow to underpin the R3D’s extensive exploration activities in the Chillagoe region.

Competent Person’s Statement

The information in this announcement that relates to Exploration Results and Exploration Target is based on information compiled by Mr Wayne (Tom) Saunders and Mr Geoff Reed. Mr Saunders is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), and a Member of the Australian Institute of Geologists (AIG). Mr Reed is Member of the Australian Institute of mining and Metallurgy (AusIMM (CP)), and a Member of the Australian Institute of Geologists (AIG). Both Mr Saunders and Mr Reed have sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration, and to the activity that is being undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the ‘Australasian Code for

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Disclaimer

R3D Resources Ltd. published this content on 05 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 June 2022 00:11:04 UTC.

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