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Redcastle Resources (ASX:RC1) now has the backing to start raking in revenue from its Redcastle Reef and Queen Alexandra gold projects in the Eastern Goldfields after this week signing a collaboration deal with Terra Mining.
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The open-book, performance-based team-up will see Terra Mining finance early development as Redcastle works to get its projects turning in profits.
Everything from initial open-pit extraction of shallow gold mineralisation (to a depth of 70 metres) to any required drilling and blasting, all loading and hauling, pit dewatering, and ore stockpiling will be covered by Terra.
“This agreement marks a key step forward in Redcastle’s relatively short history as a gold exploration business in WA,” company chairman Ray Shaw said.
The goldfields deal, Mr Shaw declared, should be taken as a signal that Redcastle “intends to transition into a small-scale gold producer in the coming months while taking the crucial steps towards self-funding our future operations.”
Ink on the non-binding memorandum of understanding is dry, as of today.
HotCopper understands site construction at the Redcastle projects will take two years.
“As Redcastle enters this important phase, a strong pipeline of activity is anticipated, driven by the company’s commitment to unlocking the value of its Eastern Goldfields portfolio through early-stage gold production,” Mr Shaw added.
Some drilling is already in the books at Queen Alexandra and Redcastle Reef too, with Redcastle’s early works at the former already highlighting shallow, high-grade gold mineralisation – including standout intercepts like its RRC212 results; four metres at 10.94g/t Au from six metres.
Another standout Redcastle would have used in its bargaining was from RRC204: There, the company hit four metres at 4.79g/t AU from eight metres.
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One key factor to note for the collaboration – and maybe one of the reasons investors have liked the news – is that Redcastle retains mining, grading, and approval control. Refined gold sales also stay with the company from today.
On this windfall team-up news, RC1 has popped more than 40% to 0.7cps.
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