R3D Resources (ASX:R3D) has reported that it intends to exercise the Beefwood Option after renegotiating a lower exercise price for the Beefwood Project, which complements the existing Bulimba Package.
The exercise option, provided for an exercise price of $385,000 to be paid in shares immediately prior to the option exercise, has been renegotiated by a 50% reduction ($192,500), but otherwise remains on the original terms of agreement.
“Our geophysics has identified seven prospective targets and, in some cases, these are supported with anomalous surface geochem”
Commenting on the exercise option, R3D Managing Director, Stephen Bartrop, said: “We are delighted to have consolidated the Bulimba – Beefwood project into one of the largest tenement positions in the Chillagoe region via the exercise of theBeefwood option.
Our geophysics has identified seven prospective targets and, in some cases, these are supported with anomalous surface geochem including gold recording up to 282g/t Au in pisolitic cover.”
The company also notes that it has identified seven key targets following falcon gravity and magnetic survey operations along Western Bulimba, with several targets boasting ‘encouraging’ surface geochemical anomalies of up to 282g/t Au in overlying limonitic sediments.
On the other hand, the option exercise is subject to the Vendors successful renewal of the EMP, which is expected to take several weeks, however, once approved, the company will confirm the exercise and release shares within 14 days of the notification.
The Beefwood project is located within the broader 1,250km² Bulimba Project and has undergone very little exploration with historical drilling being limited to three shallow holes drilled by North Limited in the early 1990s.
The Beefwood Project is within close proximity to a splay of the Palmerville Fault, a major structural feature, and proves to be ‘highly prospective’ following geophysical and geochemical surveys.
With the company exercising the Beefwood option, it reports that it will move forward with a HelitEM survey to identify conductors below key targets in the tenement area later in 2022.
Images: R3D Resources Limited
