Beefwood and Bulimba Project
Chillagoe Exploration Pty Ltd (Chillex), a 100% owned subsidiary of R3D Resources, has signed an option agreement with Newcrest Mining Limited (Newcrest) where after Chillex meets minimum expenditure levels, Newcrest agrees to transfer the Bulimba project tenement package to Chillex. The Bulimba project is considered prospective for copper and gold exploration associated with Late-Carboniferous to Early-Permian intrusive bodies.
R3D and Newcrest have agreed to the following terms:
- Newcrest transfers tenements to TNA or a 100% owned subsidiary of TNA.
- TNA agrees to spend minimum of A$336,000 over first year (until 19 November 2021) and keep the tenements in good standing.
- TNA can relinquish all or parts of tenements but must first advise Newcrest. If a full tenement is being considered for relinquishment,
- Newcrest can have the tenement transferred back to Newcrest if it desires.
- Newcrest has claw back for 75% of tenement if +1 Moz is identified by drilling that has the potential to be converted to a JORC Code (2012) compliant Inferred Mineral Resource or has been converted to JORC Code (2012) compliant Inferred Mineral Resource by repaying three times the value of TNA’s exploration expenditure across the package to that date.
- Once a minimum 1 Moz of gold equivalent is classified as a JORC Code (2012) Inferred Mineral Resource, Newcrest has 60 days to decide to claw back the 75% or this right lapses.
- Newcrest will be entitled to 2.0% net smelter return (NSR) royalty on production from the Newcrest tenements if the production head grade is greater than 1 g/t Au equivalent or 1.5% NSR if the production head grade is below 1 g/t Au equivalent.
- R3D can bring in a joint venture partner in the future, but Newcrest will have veto rights over the partner and the agreement terms remain.
The Beefwood project is within EPM 26399 and has been the subject of the Beefwood option agreement and which is being exercised – transfer of the tenement is now only subject to Ministerial approval.
Beefwood falls within the Bulimba group of tenements as outline below.
In 2021 R3D completed a 1574-line kilometre Falcon Gravity/Magnetic survey over western tenements identifying large copper/gold and REE targets associated with igneous intrusions (e.g. IRGS).
A Helitem program is proposed for 2023 to identify buried conductors, particularly associated with previously identified targets by Newcrest as well as targets stemming from the Falcon survey. The proposed Helitem flight plans outlined below.