Queen Alexandra Scoping Study: 13,700 Ounces Gold Over 10 Months at AU$4,800/oz

A Promising Start for Queen Alexandra

Redcastle Resources Limited (ASX – RC1) has released an independent Scoping Study for its Queen Alexandra gold project, painting a compelling picture of near-term production and strong financial returns. The study outlines a multi-stage open pit mining operation designed to extract approximately 13,700 ounces of gold over a 10-month mine life, leveraging a gold price assumption of AU$4,800 per ounce.

The project’s initial phases, Stage 1 and Stage 2 pits, target 181,000 tonnes of ore at a head grade of 2.56 grams per tonne, predominantly from Indicated Mineral Resources. This approach is expected to generate project revenues of about $65.6 million and an undiscounted pre-tax cash surplus estimated between $14 million and $15 million after covering working capital costs.

Funding and Operational Considerations

To bring the project into production, Redcastle anticipates total funding needs in the range of $21 million to $22 million, which includes pre-mining capital and start-up costs estimated at around $6 million. The company is actively exploring funding avenues, including toll milling agreements and joint venture proposals, to mitigate capital intensity and execution risk.

The study assumes third-party toll treatment, a strategy that aligns with the project’s proximity to existing processing infrastructure in the Leonora-Laverton greenstone belt. Redcastle is currently evaluating toll milling options amid a tight market for such services, aiming to optimise operational efficiency and cost control.

Upside Potential and Strategic Outlook

Beyond the initial pits, the Scoping Study identifies a Stage 3 pit extension that could add approximately 1,700 ounces of gold, contingent on gold price and grade control success. This deeper pit, reaching about 70 meters, may also open pathways to underground mining of high-grade lodes such as Kestrel, Hawk, and Eagle, which have shown promising drill results with visible gold.

Additionally, the nearby Redcastle Reef deposit, located just 700 meters from Queen Alexandra, offers potential operational synergies including shared infrastructure and reduced haulage costs. While these opportunities are not yet fully incorporated into the current financial model, they represent meaningful upside for the project’s economics.

Caution and Next Steps

Significantly, the Scoping Study is preliminary and based on Indicated and Inferred Mineral Resources without declared Ore Reserves. The company acknowledges the need for further drilling, detailed feasibility studies, and environmental assessments to confirm the project’s economic viability and secure necessary approvals.

Redcastle plans to advance with Phase 2 studies incorporating Redcastle Reef, undertake essential geotechnical and hydrological investigations, and finalise pit designs and site layouts. The company’s disciplined approach to cost and risk management aims to position Queen Alexandra for a successful transition from study to production.