Copper and gold explorer and producer R3D Resources (ASX:R3D) is set to resume copper sulphate pentahydrate production in Far North Queensland, having dodged major damage from Cyclone Jasper in December 2023.
The $5.79 million market capitalisation company, which is seeking to rename itself to Tartana Minerals (ASX:TAT), on 12 December announced that it had to suspend production at its Tartana Plant as it prepared for the cyclone to hit.
However, while the company prepared for the worst, it says the impact of the cyclone on its plant and pond levels was ‘minimal’, and production is now set to resume on 5 January 2024.
R3D is targeting its first shipment from Tartana the following week.
While the company reported no material damage to its site and no injuries from the slow-moving cyclone, the associated rainfall meant that the mine was inaccessible from 12 December until Christmas because the Burke Development Road was impassable.
While this impacted December quarter production, R3D still has arrangements in place with its offtake partner, Kanins, to receive full payment for the product on leaving the mine site, which it says should ‘significantly’ improve near-term cashflow.
R3D Managing Director Stephen Bartrop says: “It is disappointing that December quarterly production was lower than expected. However, we are expecting to catch up production during this current quarter and will see our first shipment of product completed next week.
Mechanical repairs conducted during the December quarter have increased plant reliability, and we continue to improve our understanding of steady-state operating performance.”
“We are expecting to catch up production during this current quarter and will see our first shipment of product completed next week”
The company’s December quarter production was limited to 20 bags of copper sulphate due to the cyclone. The company was initially planning to see the plant ramp up to full production in December before the cyclone hit.
Alongside its copper sulphate pentahydrate assets, R3D owns several copper, gold, silver, and zinc projects in Queensland and Tasmania.
Write to Joshua Smith at Mining.com.au
Images: R3D Resources
