- Approval of mine development proposal received
- Heavy mining equipment fleet arriving
- Blast hole drilling associated with initial mining underway
- Mining being delivered through the Redcastle-BML Ventures JV
Redcastle Resources (ASX: RC1) is fast-tracking fleet mobilisation as it progresses mining operations at the Queen Alexandra (QA) and Redcastle Reef (RR) gold deposits in Western Australia.
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The company is well on the way to transitioning from explorer to gold producer through the mining operation with the Redcastle-BML Ventures joint venture (RB JV), with BML Ventures as operator.
Chairman Dr Ray Shaw said through the JV Redcastle is set to achieve this milestone with exposure to near-term gold production via a capital-light operating model.
“This is a defining moment for Redcastle. Within days of receiving mine development proposal approval, equipment is arriving onsite, blast-hole drilling has commenced, and we are tracking to breaking ground earlier than planned,” Dr Shaw said.
“Through our joint venture with BML Ventures, RC1 is transitioning from explorer to gold producer in a capital-light model that we believe delivers exceptional leverage to gold for our shareholders.”
According to operator BML Ventures, logistical support for personnel and materials is in place and key preparatory activities are well underway.
The fleet of heavy mining equipment has started to arrive at the granted mining lease hosting both Redcastle Reef and Queen Alexandra.
In addition, blast hole drilling associated with initial blasting operations has commenced and is progressing at pace, underpinning the commencement of mining operations.
Dr Shaw said that provided that mobilisation activities run into no unforeseen circumstances the company anticipates continuous mining operations will be underway by late May.
Mined material will be sorted and stockpiled at site. Ore will then be transported to Wiluna for milling and treatment, utilising processing capacity secured by BML on behalf of the RB JV.
“By leveraging existing third-party processing infrastructure rather than constructing a stand-alone mill, the JV materially reduces the capital intensity of bringing the Redcastle Gold Project into production – a defining feature of RC1’s transition to producer status,” Dr Shaw said.
RC1 is steady at 16.0¢. Mkt cap $19.20M.
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