Redcastle Resources (ASX:RC1) anticipates its Queen Alexandra gold project in Western Australia will yield high returns, according to an independent Scoping Study. Redcastle Resources is focused on gold exploration and development within Australia. Its primary project is the Redcastle Project, which includes several prospects with demonstrated gold occurrences.
The Scoping Study, conducted by Mining One Consultants, explored avenues to maximise near-term cash flow by assessing the potential of phased open pit development. The study indicates that 73,000 tonnes at 3.83 grams per tonne of gold resources are available for milling after five months, surpassing the minimum parcel size of 50,000 tonnes for toll treating and producing 8,300 ounces of gold.
Over a 10-month mine life, the Queen Alexandra project is projected to generate a pre-tax cash surplus of $14–15 million, with expected project revenue of $65.6 million. Pre-mining capital and start-up costs are estimated at $6 million. Funding requirements are estimated between $21 and $22 million, based on a combined stage one and two pit development.
Redcastle has commenced discussions and is evaluating options for a toll milling agreement, while also considering a joint venture proposal related to production and milling operations. Chairman Raymond Shaw believes the Scoping Study reinforces the project’s significance, citing strong grades, straightforward metallurgy, and proximity to existing processing infrastructure as factors confirming the potential for near-term production.
