Newly listed R3D Resources has a secured an exclusivity agreement to purchase the Beefwood project, potentially building on its Chillagoe region tenement package.

The company’s local assets include the former Tartana copper operation, where it aims to restart copper sulphate production in 2022.

The Beefwood project (EPM 26399) is strategically positioned within Newcrest Mining’s Bulimba project.

R3D has secured an agreement with Newcrest Mining where it can acquire the Bulimba tenements, covering more than 1250sq km.

R3D Resources believes that the Beefwood project area is highly prospective for porphyry, epithermal and intrusion-related mineralisation.

Terms of the exclusivity agreement with Three Rivers Prospecting and Michael Thompson include:

• A two-week exclusivity period for cash payment of $10,000.
• An Option Price of 1.925 million shares equivalent to a payment of $385,000.
• The Option Period to May 31 2022 within which R3D Resources can exercise the option by paying $385,000 in shares priced at the one-month VWAP immediately prior to the option exercise notification.
• A residual 1 per cent NSR royalty on any production is then payable to the parties and a minimum $125,000 expenditure commitment prior to March 31 2022.

Related: R3D Resources raring to go at Chillagoe

R3D Resources has also recently completed a gravity survey of the Bellevue and Dry River project, which is also within its Chillagoe region tenement package and includes the historical OK mine site.

It commissioned Xcalibur/CGG Aviation Pty Limited to fly a 716-line kilometre Falcon gravity and magnetic survey, and is awaiting the results of data processing.