Redcastle Resources charts path to gold production with contract miner

Redcastle Resources has inked a performance-based, profit-sharing MoU with a mining services contractor for open-pit gold extraction

Redcastle Resources has signed an MoU with Terra Mining to fund and manage initial open pit gold mining at two of its projects Pic: Getty Images

• Redcastle inks MoU with Terra Mining to fund and manage mining work at Queen Alexandra and Redcastle Reef projects

• Contract operates as performance-based, profit-sharing alliance

• RC1 retains rights over mined gold and control of downstream transportation and toll processing

Special Report: Covering the first 70m of open pit gold extraction, Redcastle Resources’ MoU with Terra Mining is an important milestone in the company’s journey to gold production.

Under the non-binding MoU, it is intended that Terra Mining will fund and manage contract mining work at the Queen Alexandra and Redcastle Reef projects.

Redcastle Resources’ (ASX:RC1) recent drilling at Queen Alexandra highlighted the high-grade and shallow nature of the gold mineralisation there, hitting intersections of 4m at 10.94 g/t from just 6m of depth and 4m at 4.79 g/t from 8m.

The company’s plans include a shallow open pit for initial gold extraction, with Terra Mining to handle the drilling and blasting, loading and hauling, pit dewatering and ore stockpiling required.

“This agreement marks a key step forward in Redcastle’s relatively short history as a gold exploration business in WA and signals our clear intention to transition into a small-scale gold producer in the coming months, while taking the crucial step towards self-funding our future operations,” Redcastle Resources chair Raymond Shaw said.

“This measured strategy of the board thoughtfully balances minimising short-term capital expenditure with preserving the widest range of options for valuable long-term growth potential.”

Watch: On the fast-track to production

Two-year construction and production schedule

Redcastle expects site construction and gold production for the first 70m of mining to take about two years at Queen Alexandra and Redcastle Reef.

The company will retain control over mine scheduling, grade control, environmental approvals and refined gold sales.

The two projects sit just 700m apart, meaning they can take advantage of the same haul roads, dumps and transportation infrastructure, reducing overhead costs and simplifying development plans.

Queen Alexandra and Redcastle Reef projects with prospect locations. Pic: RC1

Located in the ‘golden circle’ of the Leonora-Laverton gold corridor, the projects are surrounded by multi-million-ounce gold operations, including Gwalia (18Moz) Granny Smith (14Moz) Mt Morgans (3.3Moz) and Apollo Hill (1.8Moz).

Regional project area with locations of nearby gold operations. Pic: RC1

Taking the next steps on its strategy towards early-stage production, Redcastle is focused on completing heritage, flora and fauna field surveys, as well as baseline environmental studies for its project areas.

The company is also finalising a mineral resource estimate for both projects in June 2025, after which it will undertake economic evaluation work with expectations holding that the necessary mining approvals will be secured by 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.

Originally published as Redcastle Resources charts path to gold production with contract miner