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A study run at Queen Alexandra has left Redcastle Resources (ASX:RC1) bullish on its Golden Circle-based project, with the report suggesting the WA explorer has a “high return project” on its hands – should gold prices hold steady.
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The scoping study was based on a JORC Indicated and Inferred Mineral Resource from 2012 and largely focused on “various options to maximise cash flow.”
The results included confirmation that 73 kilotonnes of high-grade (3.83 grams per tonne gold) mineral resources are available for milling in as soon as five months, far outweighing the original assumed parcel of 50kt for toll treating.
Redcastle now believes QA would have a 10-month mine life if the Oz explorer ran two shifts a day; as much as 13.7K ounces would be produced a day.
This would then lead to as much as $14 to $15 million in undiscounted, accumulated, pre-tax cash after Redcastle had paid all the working capital costs associated with the Queen Alexandra mine and its operations.
Project revenue could climb as high as $65 million through 10 months, Redcastle added.
Pre-mining capital and start-up costs were estimated to be $6 million, all up.
Redcastle does have to run further drilling to establish pit slopes, confirm ore characterisation for mining, and settle on how the company should approach metallurgical treatment, but overall, it was “very good.”
“2025 remains a breakout year for Redcastle. The release of our initial scoping study for Queen Alexandra further reinforces this,” Chairman Raymond Shaw said.
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He continued: “With strong grades, straightforward metallurgy, and close proximity to existing processing infrastructure, the low-risk development outlined in the initial shallow pit design confirms the potential for near-term production.
“We will continue to apply a disciplined approach as we progress towards commercialisation of QA, maintaining our focus on delivering Redcastle’s first gold pour.”
RC1 heads into Friday’s morning trade at 0.8cps.
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