Latest news with #RaymondShaw
The Australian
04-08-2025
- Business
- The Australian
RC1's Queen Alexandra flags high returns
Special Report: Redcastle Resources has pulled the covers off an independent scoping study that highlights the potential of its Queen Alexandra gold project in WA's Eastern Goldfields to deliver strong returns. Redcastle's Queen Alexandra project targets 13,700oz gold production to generate $65.6m revenue over 10 months Total funding requirement estimated at $21-22m with pre-tax cash flow of $14-15m Scoping study highlights potential for further expansion that will add another 1700oz The study found that at current commodity prices, a two stage open pit development would be able to produce 13,700oz of gold by processing 181,000t of ore at an average head grade of 2.56g/t over a 10 month period. Using a gold price of $4800/oz, this is expected to generate revenue of $65.6m and undiscounted pre-tax cash flow of between $14m and $15m. Total funding costs for Redcastle Resources (ASX:RC1) are estimated at $21-22m with pre-mining capital and start-up costs of about $6m. "2025 remains a breakout year for Redcastle. The release of our initial scoping study for Queen Alexandra (QA) further reinforces this significance,' non-executive chairman Raymond Shaw said. 'This opportunity is supported by modest capital requirements and compelling economics at current gold prices. 'With strong grades, straightforward metallurgy, and close proximity to existing processing infrastructure, the low-risk development outlined for the initial shallow pit design confirms the potential for near-term production.' Oblique view of the Stage 1 (pink) and Stage 2 (blue). Pic: Redcastle Resources Scoping study The scoping study found that about 73,000t of higher grade material (3.83g/t gold) would be available for milling at the end of the fifth month, which exceeds the assumed minimum parcel size of 50,000t for toll treatment. This will produce about 8300oz of gold, which is a little less than two thirds of the overall production target of 13,700oz. RC1 also has a great deal of confidence in meeting these numbers as a hefty 91% of the production target comes out of Queen Alexandra's indicated resources with only 9% drawn from inferred resources. There is also potential for further upside by carrying out a third stage pit expansion to a depth of about 70m, which will allow access to a further 1700oz of gold depending on the gold price, final pit design and successful application of grade control procedures. Additional work will be required to expand the pit or consider underground mining opportunities to access the deeper Kestrel, Hawk and Eagle lodes which have high grade intersections and visible gold. The company add the study found that Queen Alexandra has a breakeven price of ~$3700/oz and that every $100 increase in the gold price above $4800/oz results in extra revenue of about $1.4m. Queen Alexandra currently has an indicated resource of 167,000t grading 2.9g/t, or 16,000oz of contained gold, and an inferred resource of 98,000t at 4.1g/t, or 13,000oz of contained gold. Next steps RC1 has begun discussions and is evaluating options for a toll milling agreement whilst also assessing a Joint Venture proposal relating to production and milling operations. The company is actively planning a Phase 2 scoping study that will investigate the concurrent mining of the nearby Redcastle Reef project, which has an indicated resource of 146,000t at 1.9g/t, or 9000oz of contained gold. It will also carry out all essential geotechnical and sterilisation drilling later in 2025 along with hydrology and ground water studies. Additionally, work will be carried out on final pit design, , equipment optimisation and site layout. Looking further ahead, the company will define an ore reserve, complete a feasibility study and finalise environmental studies. This will enable the compilation and submission of a mining plan during the first half of 2026. This article was developed in collaboration with Redcastle Resources, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
The Australian
05-05-2025
- Business
- The Australian
RC1 boosts Redcastle gold potential
Special report: Assay results from the final phase of 2025 RC drilling at Queen Alexandra prospect within the Redcastle Resources' namesake gold project support the foundations for anticipated future mine development. Redcastle has received final assays from the 2025 RC drilling program Higher grade, shallow mineralisation in the Kestrel Lode have expanded its areal extent Resource preparation is underway at Queen Alexandra and Redcastle Reef The 19-hole program for 1853m was designed to refine the Kestrel Lode's geometry and grade, particularly within the near-surface zone. The Kestrel Lode is considered most amenable to a positive cashflow development scenario resulting from early-stage open pit mining. About 40 of 51 drill holes have intersected mineralisation of >2g/t including 2m at 7.80g/t gold from 66m and 6m at 2.70g/t from 36m, complementing the previous first phase results. Redcastle Resources (ASX:RC1) says integrating the 2025 assay dataset has further defined the Kestrel Lode characterised by 24 high-grade intercepts over a minimum 2m width. Meanwhile, deep gold mineralisation in the eastern portion of the Redcastle Reef prospect is expected to strengthen the likelihood of it becoming a satellite development to Queen Alexandra with notable results including 16m at 1.20g/t gold from 84m and 1m at 7.42 g/t from 107m. Transformative 2025 The Redcastle Project is ~58 kilometres east-southeast of the Gwalia Gold Mine and centrally located within a regional 'golden circle', an area delineated by multi-million-ounce gold interests in the highly prospective Leonora-Laverton portion of the greenstone belt of the eastern Yilgarn. With strong gold grades, scoping work and a MRE update underway, RC1 is well-positioned for a transformative 2025. Resource prep in the works RC1 non-executive chairman Raymond Shaw said the company continued to be very excited about the results of 2024/2025 drilling. 'The assay results underscore the very genuine opportunity Queen Alexandra presents to our company,' he said. 'Work is now focused on assessing the material impact of all drilling results upon the JORC compliant MRE at Queen Alexandra and preparing our maiden JORC compliant MRE at Redcastle Reef. 'These will serve as foundations for anticipated future mine development, commencing with a bulk sampling program for metallurgical and processing studies,' Shaw added. 'We envisage recovery of near surface (6-10m) high-grade gold mineralisation as an early-stage to developing a larger open pit mining operation, using less capital-intensive models including accessing third-party processing capacity available within the district.' What's next? Drilling results at Redcastle Reef demonstrate that the majority of mineralisation is concentrated within 60-70 metres of surface, except towards the eastern extent where, as evidenced by intercepts from RC281 and RC282, mineralisation extends to about 100 metres depth. The Kestrel Lode is the most extensively delineated mineralised zone identified to date within the Queen Alexandra project. Subject to the outcomes of a formal scoping study and further technical assessments, the Kestrel Lode has the potential to support a conceptual open pit development to depths of at least 70m, targeting near-surface high-grade oxide and transitional material. An updated, independent resource for Queen Alexandra is being prepared on the basis of the extensive RC and diamond drilling assay database and is scheduled for completion in June 2025. This article was developed in collaboration with Redcastle Resources, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
