Star of Mangaroon Targets 20,000oz at 10g/t with A$40M Operating Cashflow

Scoping Study Highlights a High-Grade Opportunity

Dreadnought Resources Ltd has unveiled a promising scoping study for its 100%-owned Star of Mangaroon gold project, located in Western Australia's Gascoyne region. The study targets an initial open pit operation producing approximately 20,000 ounces of gold at an impressive grade of 10 grams per tonne (g/t), underscoring the project's high-grade potential.

The financial analysis within the study is robust, projecting an operating cashflow of around A$40.1 million based on a gold price assumption of A$4,100 per ounce. Capital expenditure is estimated at a maximum of A$10.2 million, with an all-in sustaining cost (AISC) of A$1,800 per ounce, positioning the project competitively among Western Australian gold operations.

Strategic Partnerships and Operational Readiness

A key component of the project’s development strategy is a non-binding ore processing agreement with Black Cat Syndicate Ltd, which will see Star of Mangaroon material processed at Black Cat’s Paulsens facility approximately 330 kilometres away. This arrangement leverages existing infrastructure and reduces upfront capital requirements, aligning with Dreadnought’s goal to become a self-funded explorer.

Detailed mine studies are well advanced, with environmental baseline studies underway and early contractor engagement in progress. The company aims to commence mining operations in 2025, contingent on securing the necessary regulatory approvals and funding.

Exploration Upside and Resource Expansion Potential

The initial production target remains open to expansion, with extensional drilling planned to test strike and depth extensions of the mineralisation. Dreadnought holds five granted mining leases in the Mangaroon area, including historical mines such as Popeye, Two Peaks, Lead Gold Mine, and Pritchard’s, which offer immediate opportunities to add ounces and extend mine life with minimal additional approvals.

Notably, recent drilling at the Popeye prospect returned high-grade intercepts, including 3 metres at 22.8 g/t gold, highlighting the potential to grow resources rapidly. The company is also investigating a historic heap leach within the pit design area that could yield additional economic material.

Metallurgical Excellence and Cost Efficiency

Metallurgical test work has demonstrated exceptional gold recoveries averaging 98%, combining gravity and carbon-in-leach processing, which supports the project's economic viability. The mining schedule is conservatively designed around excavator hours, with some unutilised capacity that could be leveraged for additional mining activities, potentially improving cost metrics further.

Financial sensitivity analysis indicates that a $100 per ounce change in gold price impacts operating cashflow by approximately A$1.9 million, underscoring the project's resilience to gold price fluctuations.

Looking Ahead: Funding and Approvals

Dreadnought’s Managing Director, Dean Tuck, emphasised the strategic importance of the study, stating that the cashflow generated could fund future exploration and potentially return capital to shareholders. The company plans to advance discussions with third parties to outsource funding, development, haulage, and processing, reducing reliance on equity markets.

Key next steps include completing environmental and baseline studies, securing regulatory approvals by late 2025, and finalising mining and processing agreements. The company also intends to accelerate exploration drilling across its granted leases to build on the initial production base.