- R3D Resources (R3D) receives permits to recommence processing at its Zeehan zinc slag/matte project in Western Tasmania
- The permits will allow R3D to access the Northern Stockpile and to crush the remaining oversize slag from the Southern Stockpile in preparation for export
- The company has about 120,000 tonnes of slag to process and ship in stage two of the project, which is expected to be complete by early next year
- Additionally, it has negotiated a higher sales price to cover increased production and transport costs, as well as future rehabilitation costs
- Shares in R3D are up 3.41 per cent to trade at 9.1 cents at 10:42 am AEST
R3D Resources (R3D) has been granted permits to recommence processing at its Zeehan zinc slag/matte project in Western Tasmania.
The permits will allow R3D to access the Northern Stockpile and to crush the remaining oversize slag from the Southern Stockpile in preparation for export.
The company has about 120,000 tonnes of slag to process and ship in stage two of the project, which is expected to be complete by early next year.
Additionally, R3D has negotiated a higher sales price to cover increased production and transport costs, as well as future rehabilitation costs.
CEO and Managing Director said sales from the project have been an important cash flow generator.
“Ongoing shipments at this scale will help with funding other operations including the restart of production at the company’s Tartana copper sulphate project – itself expected to soon generate positive cash flows – and planned high impact exploration activities,” he said.
R3D Resources has also negotiated an increase in sale price with the metals and minerals trader MCC Non-ferrous Trading. This will cover increased production and transporting costs, as well as contribute to future rehabilitation costs.
The company said this arrangement is profitable for the company as it provides a source of stable cashflow.
Shares in R3D were up 3.41 per cent to trade at 9.1 cents at 10:42 am AEST.