AUS
NZ
UK
CA
USA
IND
Highlights:
Bain Global Resources and MEGA Resources have signed an Indicative Non-Binding Term Sheet with Rumble Resources to develop the open pit resources at the Western Queen gold project.
The plan includes the deepening and cutback of the Western Queen South open pit and the smaller open pits, with a focus on advancing the resource base.
The parties will negotiate a Joint Venture and Mining Services Agreement, aiming to finalize the agreements by February 28, 2025.
Rumble Resources (ASX:RTR) has made significant progress with its Western Queen gold project, entering into an Indicative Non-Binding Term Sheet with Bain Global Resources and MEGA Resources to develop the open pit resources. The agreement outlines the plan to deepen and expand the existing Western Queen South open pit, along with smaller adjacent pits such as Duke and Princess.
The Western Queen gold project has seen a notable increase in its resources, with a 76% rise reported in the last update, bringing the total to 4.42 million tonnes at 2.02 g/t gold for approximately 286,600 ounces. The project holds considerable potential for further resource growth, with mineralization extending along strike and at depth across the main 2.7-kilometer project area. Currently, Rumble is conducting an extensive 20,000-meter drill program to explore new high-grade plunging shoots within the deposit.
Under the new agreement, MEGA Resources will provide the mining contract services for the open-pit operations and will cover all development and working capital costs up to a specified limit, with no financial investment required from Rumble. The free cash flow from the open-pit operations, once initial development costs are recovered, will be shared between Rumble and Bain Global Resources.
The parties are now focused on negotiating the final commercial arrangements, including a Joint Venture Agreement and Mining Services Agreement, with the goal of finalizing these agreements by the end of February 2025. Once in place, Rumble will work on confirming project economics, securing an ore tolling agreement with a local processing plant, and obtaining the necessary approvals for mining operations.
Rumble Resources' management is optimistic about the partnership's potential and is dedicated to advancing the Western Queen gold project, with future plans also focused on its Earaheedy zinc-lead-silver project.
