R3D is working to restart the mothballed plant in the Chillagoe region of far northern Queensland, with the aim to restore production before year's end.

 

The plant is expected to ramp up from about 200 tonnes per month over the first 8-12 months, rising to 500tpm thereafter - covering all of the expected plant output.

 

The agreement covers all production up to 6000tpa for the first three years.

 

Resource at Tartana are reported to exceed 10,000t copper.

 

Pricing will be set based on the London Metal Exchange three-month copper price, last reported at US$7450/t.

 

Kanins is a niche supplier to the industrial, animal feed, agricultural and aquacultural markets globally, and previously held sale and distribution rights to the copper sulphate produced at Tartana under the previous owner, Kagara.

 

The heap leach solvent extraction-crystallisation plant produced for a decade before being placed on care and maintenance in 2014. 

 

R3D managing director Dr Stephen Bartrop said the exclusive deal with Kanins underpinned the ongoing restart program, and provided confidence the company's ability to generate revenue.

 

Kanins will also provide technical services to help support the restart.

 

Kanins managing director Simone Watt said demand for copper sulphate was strong.

 

Refurbishment of the plant has been R3D's priority over the past few months, with the junior keen to secure cashflow to support its exploration efforts around the plant, where it has also been drilling oxide and chalcopyrite targets at Tartana, and the Queen Grade zinc target.

 

The company had just A$780,000 cash at the start of the quarter, but has reactivated sales from its 

Zeehan low-grade zinc slag project in Tasmania, which should top up its coffers. 

 

It has shipped 30,000t to South Korea since September.

 

R3D shares were off 5% this morning at 9c, valuing the company at $13 million.

 

It has traded at 7-18c over the past year.