Rumble Resources (ASX: RTR) has released a comprehensive Scoping Study for its Western Queen South deposit, revealing exceptionally strong project economics that position the company for rapid gold production with minimal capital requirements. The Rumble Resources Western Queen gold project demonstrates outstanding potential with $133 million in free cash flow, an impressive 370% internal rate of return, and $112 million NPV at current gold prices.
The underground mining project offers a compelling investment proposition with all-in sustaining costs of just $2,970 per ounce and the potential for first ore production within six months of commencing decline development.
Exceptional Economics Drive Strong Investment Case
The Western Queen South Scoping Study reveals project metrics that stand out in the current gold sector. Furthermore, these results demonstrate the exceptional quality of the Rumble Resources Western Queen gold project compared to industry benchmarks.
The key production metrics include:
• Production Target: 617,000 tonnes at 2.95g/t for 58,500 ounces of contained gold
• Capital Requirements: Less than $10 million in upfront development costs
• Cash Generation: $133 million in free cash flow over the mine life
• Operating Costs: $2,970 per ounce all-in sustaining costs
• Payback Period: Rapid returns with 370% IRR
Management Commentary:
"The Western Queen South Scoping Study clearly demonstrates the incredible value of the underground development option at our Western Queen Gold Project. Importantly, the upfront capital required is relatively small."
— Peter Harold, Managing Director
The study's robust economics are underpinned by the high-grade nature of the orebody and simple underground mining methods suitable for the steep-dipping deposit geometry.
Key Financial Metrics Summary
| Metric | Value |
|---|---|
| Free Cash Flow | $133 million |
| NPV (8% discount) | $112 million |
| IRR | 370% |
| AISC | $2,970/oz |
| Capital Cost | <$10 million |
| Mine Life | 32 months |
Strategic Processing Partnership Creates Clear Path to Production
Western Queen's strategic location within 200km of five operational or near-operational gold processing facilities provides multiple pathways to market. In addition, the company has established a non-binding Memorandum of Understanding with Gylden Resources for toll treatment at the Kirkalocka plant, located 180km from Western Queen.
Available Processing Options:
• Kirkalocka (2.0 Mtpa) – Gylden Resources, scheduled for H2 2026 restart
• Checkers (2.0 Mtpa) – Ramelius Resources, currently operating
• Tuckabianna (1.4 Mtpa) – Westgold Resources, currently operating
• Dalgaranga (2.5 Mtpa) – Ramelius Resources, on care and maintenance
• Golden Range (0.8 Mtpa) – Capricorn Metals, on care and maintenance
The study assumes $100 per tonne for combined processing and haulage costs, with 94% gold recovery rates based on historical performance from previous mining operations at Western Queen.
Understanding Uphole Stoping: Simple Underground Mining for Complex Deposits
What is Uphole Stoping?
Uphole stoping is an underground mining method particularly well-suited to steep-dipping, high-grade ore deposits like Western Queen South. This technique involves drilling holes upward from lower levels to extract ore from above, allowing gravity to assist in ore movement and reducing operational complexity.
Why It Matters for Investors
This mining method offers several advantages that directly impact project economics:
• Lower capital requirements due to simpler infrastructure needs
• Faster development timelines with proven technology
• Reduced operational risk through gravity-assisted ore handling
• Cost-effective extraction suitable for smaller, high-grade deposits
Consequently, the method's suitability for Western Queen's geology contributes significantly to the project's exceptional economics and rapid development potential.
Significant Resource Growth Potential
The current Scoping Study represents only the beginning of Western Queen's potential value realisation. However, several factors indicate substantial upside for the Rumble Resources Western Queen gold project.
Immediate Expansion Opportunities
Western Queen South Growth:
• Only 29% of the current Mineral Resource included in mining production target
• Significant Inferred Resources available for potential upgrade
• 20,000-metre diamond drilling program currently underway to increase resource confidence
Western Queen Central Addition:
• Additional high-grade deposit accessible from same decline infrastructure
• Preliminary designs completed but excluded from current study
• Potential to significantly extend mine life with minimal additional capital
Regional Exploration Upside
| Deposit | Resources (kt) | Grade (g/t) | Contained Gold (oz) |
|---|---|---|---|
| WQ South | 2,320 | 2.7 | 198,900 |
| WQ Central | 800 | 4.8 | 124,000 |
| Princess | 480 | 2.3 | 36,200 |
| Duke | 34 | 7.1 | 7,700 |
| Cranes | 70 | 1.4 | 3,300 |
| Total | 3,720 | 3.1 | 370,000 |
Tungsten Co-Product Adds Value Diversification
Western Queen's tungsten mineralisation presents an additional revenue stream that could significantly enhance project economics. Furthermore, the company is conducting metallurgical testwork to determine optimal extraction and processing methods for this strategically important metal.
Tungsten Market Context:
• Critical metal for defence and industrial applications
• Limited global supply sources
• Potential for premium pricing in concentrated form
• Could provide revenue diversification beyond gold production
The proximity of tungsten mineralisation to gold zones suggests potential for concurrent extraction, adding value without significant additional mining costs.
Robust Project Fundamentals Support Investment Thesis
Proven Historical Production
Western Queen boasts a strong production history with 880,000 tonnes processed at 7.6g/t for 215,000 ounces from previous open-pit operations through 2014. This historical performance validates the deposit quality and metallurgical characteristics assumed in the current study.
Low-Risk Development Profile
• Granted mining leases (M59/45 and M59/208) provide tenure security
• Established infrastructure with road access and nearby towns
• Proven metallurgy from previous operations
• Simple underground design using conventional mining methods
• Multiple processing options reduce execution risk
Strong Sensitivity Analysis Results
The project maintains positive economics across a wide range of scenarios:
| Parameter | 80% Base Case | 120% Base Case |
|---|---|---|
| Metal Prices | $73.5M | $192.3M |
| Grade | $73.6M | $192.2M |
| Recovery | $73.6M | $192.2M |
| Operating Costs | $163.5M | $102.3M |
Free cash flow figures in millions (AUD)
Why Western Queen Deserves Investor Attention
Rumble Resources has positioned Western Queen as a near-term gold production asset with exceptional economic characteristics rarely seen in today's market. Moreover, the combination of high-grade resources, low capital requirements, multiple processing options, and substantial expansion potential creates a compelling investment opportunity.
Key Investment Catalysts:
• Permitting progress for underground development
• Drilling results from ongoing 20,000m program
• Processing agreement finalisation with Gylden Resources
• Resource upgrades from Inferred to Indicated categories
• Tungsten metallurgy results for co-product revenue
The project's rapid payback period and strong cash generation provide investors with exposure to both immediate production value and long-term exploration upside. In addition, this positions the Rumble Resources Western Queen gold project in one of Western Australia's most prospective gold regions.
Investment Takeaway:
Western Queen represents a rare combination of low-risk, high-return gold production with significant expansion potential. The project's exceptional economics, strategic location, and proven resource base position Rumble Resources as a compelling investment in the current gold market environment.
Glossary of Terms:
• AISC (All-In Sustaining Costs): Total cost per ounce including operating costs, sustaining capital, and corporate expenses
• IRR (Internal Rate of Return): The discount rate that makes NPV equal to zero, measuring project profitability
• NPV (Net Present Value): Present value of future cash flows minus initial investment
• Production Target: Forecast production schedule based on Mineral Resources (not Ore Reserves)
• Toll Treatment: Processing arrangement where ore is processed at a third-party facility for a fee
Ready to Explore Rumble Resources' Western Queen Opportunity?
With exceptional economics delivering a 370% IRR, minimal capital requirements under $10 million, and potential first production within six months, Rumble Resources presents a compelling near-term gold production opportunity. The Western Queen South project's robust fundamentals, multiple processing pathways, and significant expansion potential across 370,000 ounces of total resources position RTR as a standout investment in today's gold sector. Discover how you can participate in this high-grade, low-risk development by visiting Rumble Resources' official website for comprehensive investor information and latest project updates.
