Rumble on track to crack open gold at Western Queen

Rumble Resources is preparing to mine first ore from its Western Queen project as the gold price continues to climb.

Pic: Getty Images

• Rumble Resources continues development activities at Western Queen, with first ore on track to be mined before end of 2025

Special Report: As the gold price continues its climb, Rumble Resources is preparing to mine the first ore from its Western Queen project by the end of 2025.

• Emerging miner optimises relationship with strategic investor Bain Global Resources

• More high-grade gold and tungsten intercepts returned from phase 2 drilling

It comes as the soon to be miner continues to strike more very high-grade gold and tungsten intercepts in drilling.

Over recent months Rumble Resources (ASX:RTR)  has been optimising its relationship with strategic shareholder Bain Global Resources to kickstart the project, which has a current mineral resource estimate of 4.42 million tonnes at 2.02 grams per tonne for 286,600oz.

At the same time, the emerging miner has been conducting phase 2 drilling to grow the gold resource and define a resource of critical mineral tungsten – a market forecast to keep running hot amid trade tensions.

Near-term cashflow

To develop Western Queen, Rumble has teamed up with large Indian mining contractor BGR Mining & Infra Limited through its Australian entities, Bain Global Resources and MEGA Resources.

The proposed operations involve the cut back and deepening of the existing Western Queen South pit (with a JORC Resource of ~1.42Mt at 1.59 g/t for ~72,500oz gold) and mining some of the smaller open pits.

Under the proposed arrangement Bain will provide working capital of up to $35 million for the project’s development, while MEGA will manage the project and undertake all the mining operations under a mining services agreement.

The ore will be processed by one of the third-party gold plants close to Western Queen in WA’s Mid West region under an ore tolling/ore sale agreement. Discussions and data exchange are under way with the companies operating those plants.

Optimising agreements

The structure of the agreements Rumble will have with Bain and MEGA will now be covered by three separate definitive agreements: the co-operation agreement, primary facility agreement (covering the working capital of up to $35 million) and specific security deed.

All three agreements have been drafted and the companies are in the process of signing off on the final wording, working towards a revised deadline of May 30.

The mining services agreement will be finalised once these agreements have been executed.

“We are pleased with the progress being made on the development of Western Queen,” Rumble managing director and CEO Peter Harold said.

“After further consultation with our advisors, we have restructured the arrangements between us and Bain Global Resources to ensure we have a structure which is optimal for both parties. This has taken longer than we all anticipated but we are close now to finalising the various agreements.

“On the exploration side, the current program is coming to an end and we may have discovered a new lode at Duke.

“From the deeper Western Queen South diamond holes we’re eagerly awaiting the final assay results

“The re-assaying of the historical core for tungsten continues to deliver positive results and we are also looking forward to seeing the results of the preliminary metallurgical testwork.”

More high-grade results

At the Duke Prospect, 40m x 40m reverse circulation drilling has returned assay results including 4 metres at 6.26g/t of gold from only 77 metres. This represents a potential new high-grade lode and included 1 metre at 23.03g/t gold from 77m and 3m at 6.82g/t gold from 75m.

Phase 2 diamond drilling at Western Queen South and at Princess – where there is also a newly defined high-grade lode – is due for completion this month, with assay results expected in the June quarter.

Meanwhile, further sampling of historical Western Queen diamond core holes has returned multiple high-grade tungsten intercepts including 11.5m at 1.46% tungsten trioxide (WO3) and 0.79g/t gold from 248.55m, including 0.55m at 24.97% WO3 and 0.11g/t gold from 248.55m. The latest batch backs up previous exceptionally high grade results.

Rumble will now complete the relogging, pXRF analysis and sampling of the historic diamond core and locate intervals of tungsten mineralisation not previously analysed.

The company aims to complete the preliminary tungsten metallurgical testwork program and report a maiden tungsten mineral resource this year.

Duke longitudinal section highlighting interpreted lodes and significant intersections. Pic: RTR

Other steps

Also being reviewed by Rumble is a revised mine schedule which MEGA has prepared.

Bain/MEGA have purchased all the major pieces of mobile equipment for the project, with arrival in Australia still on scheduled for mid-year.

MEGA is additionally managing the permitting and approval process and continue to advance the project through the approvals process.

The progress update from Western Queen closely follows Rumble Resources adding to its portfolio by entering into an agreement to secure 100% of the highly prospective Thunderstorm gold project in WA’s Goldfields-Esperance region of WA.

RTR is also advancing its world-class zinc-lead-silver Earaheedy project.

This article was developed in collaboration with Rumble 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 Rumble on track to crack open gold at Western Queen