Rumble Resources Ltd
Rumble Resources Secures Critical Processing Deal, Fast-Tracking Western Queen to Production
Rumble Resources (ASX: RTR) has executed a comprehensive Rumble Resources toll milling deal for Western Queen gold project, securing processing capacity for 100% of Western Queen's forecast gold production at Kirkalocka's 2.1 million tonne per annum facility. The agreement covers an estimated 300,000 tonnes per annum based on the November 2025 Scoping Study and runs for 4 years and 11 months from first ore processing.
Furthermore, this deal represents a significant de-risking milestone for Rumble, eliminating the capital-intensive requirement to construct a dedicated processing plant whilst preserving full exposure to gold price upside through 100% retention of recovered gold.
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Key Commercial Terms: What Has Rumble Actually Secured?
The toll milling structure is commercially straightforward, with Rumble retaining ownership of its ore throughout the processing cycle rather than selling to a third party.
| Term | Detail |
|---|---|
| Agreement duration | 4 years and 11 months from first ore processed |
| Processing capacity | ~300,000 tpa (based on November 2025 Scoping Study) |
| Campaign structure | 75,000t Western Queen + 75,000t Gylden (blended), or 150,000t Western Queen only |
| Campaign frequency | Approximately quarterly (4 campaigns per year) |
| Gold entitlement | Rumble retains 100% of recovered gold |
| Milling fees | Fixed for calendar year 2027; negotiated annually thereafter |
| Profit sharing | None – Rumble keeps all upside |
| Tungsten provision | Good faith negotiations for tungsten processing facility |
The absence of profit-sharing arrangements means Rumble maintains complete exposure to gold price movements, whilst fixed 2027 fees provide cost certainty during the critical early production phase.
Three Strategic Benefits Management Is Banking On
Managing Director Peter Harold outlined three core advantages the agreement delivers for Western Queen's development pathway.
Accelerated Cash Flow Generation
The toll milling route is described by management as the fastest pathway to revenue, bypassing years of plant construction, commissioning, and operational ramp-up that typically characterise standalone processing facilities.
Minimised Capital Expenditure Requirements
Processing plant construction represents the largest single capital outlay in most gold developments. The November 2025 Scoping Study identified pre-development capital of less than $10 million — a figure achievable specifically because toll milling eliminates on-site processing infrastructure.
Early Tungsten Value Realisation
The agreement includes provisions for good faith negotiations around tungsten processing capabilities at Kirkalocka, consequently fast-tracking what would otherwise be a separate, later-stage capital decision into the initial production timeline.
Peter Harold, Managing Director and CEO, stated: "We are now 100% focused on getting Western Queen into production as soon as possible with the first major task being the dewatering of the Western Queen open pit. Once the pit is dewatered, we can commence the underground mine development with first ore delivered to the ROM pad approximately six months after the portal is cut."
Understanding Toll Milling: The Mechanics Behind the Deal
What Is Toll Milling?
Toll milling (also called toll treating) is an arrangement where a mining company pays a processing facility to crush, mill, and extract metals from their ore. The mine owner retains ownership of both the ore and recovered metal throughout the process, paying only a per-tonne processing fee.
Why Does This Matter for Investors?
For junior developers like Rumble, toll milling represents a capital efficiency tool that can dramatically alter project economics. Gold processing plants typically require tens to hundreds of millions in construction capital.
By accessing Kirkalocka's existing 2.1 million tonne capacity — currently being refurbished by Gylden Resources, an affiliate of global investment firm Värde Partners — Rumble avoids this expenditure entirely.
The trade-off involves paying ongoing milling fees rather than owning processing assets. However, this is generally preferable when the alternative requires significant equity dilution to fund plant construction.
Key Industry Terms
- ROM Pad: Run-of-Mine pad where ore is stockpiled before processing
- Campaign: A discrete processing run, typically involving set tonnages
- Blending: Mixing ores from different sources to optimise processing efficiency
- NPV (Net Present Value): Today's value of all future project cash flows
- IRR (Internal Rate of Return): Annualised project return on investment
- AISC (All-In Sustaining Cost): Complete cost per ounce to produce and sustain gold output
- WO3: Tungsten trioxide — standard tungsten grade measurement
- g/t Au: Grams of gold per tonne — standard gold grade measurement
Western Queen: Proven Production History With Substantial Resource Growth
Western Queen sits 90km northwest of Mt Magnet in Western Australia's Yalgoo mineral field, carrying an established production track record across two main deposits.
Historical Production Performance
| Deposit | Tonnes Mined | Grade (g/t Au) | Gold Produced |
|---|---|---|---|
| Western Queen Central | 660,000t | 8.9 g/t | 189,500 oz |
| Western Queen South | 220,000t | 3.6 g/t | 25,500 oz |
| Combined Total | 880,000t | 7.6 g/t | 215,000 oz |
The current resource base extends significantly beyond historical mining areas. Rumble's July 2025 Mineral Resource Estimate (Indicated and Inferred) totals 3.72 million tonnes at 3.1 g/t Au for 370,000 ounces across the project.
November 2025 Scoping Study — Underground Mining Economics
| Metric | Value |
|---|---|
| Production target | 617,000t at 2.95 g/t for 58,500 oz gold |
| Free cash flow | $133 million |
| NPV (8% discount rate) | $112 million |
| IRR | 370% |
| Gold price assumption | $5,540/oz |
| Current spot gold price | ~$6,350/oz |
| All-In Sustaining Cost | $2,970/oz |
| Pre-development capital | Less than $10 million |
| Resource utilisation | 29% of WQ South Mineral Resource |
The Scoping Study was modelled at $5,540/oz gold. With current spot prices around $6,350/oz, project economics have strengthened materially since completion.
Importantly, the study's production target represents only 29% of Western Queen South's current Mineral Resource, indicating substantial potential for mine life extension as resource definition improves.
Tungsten Emerges as Material Co-Product Opportunity
Whilst gold drives the primary investment thesis, tungsten is developing into a potentially significant secondary revenue stream. High-grade tungsten (scheelite) mineralisation was first identified at Western Queen South in August 2024, leading to a maiden tungsten Mineral Resource Estimate by August 2025 of 4.31 million tonnes at 0.31% WO3 for 13,200 tonnes of WO3.
Recent metallurgical testwork has confirmed the scheelite can be upgraded to a concentrate containing 48% WO3 at 45% recovery through conventional gravity circuits — an important technical validation for potential production scenarios.
A tungsten scoping study is currently underway to evaluate fast-tracking tungsten production alongside gold. In addition, the toll milling agreement's provision for good faith tungsten processing negotiations at Kirkalocka could support accelerated development timelines if terms prove commercially viable.
The tungsten mineralisation remains open in all directions and has not been fully tested across the broader Western Queen system.
Conditions Precedent and Production Pathway
Three conditions must be satisfied before the toll milling agreement becomes operative:
- Mining Decision: Rumble formally notifies Gylden of a positive decision to mine Western Queen
- Refining Contract: Both parties execute a joint gold refining agreement
- Pre-emptive Rights: Ramelius Resources does not exercise any processing rights over Western Queen ore
Once conditions are met, Rumble's operational focus centres on the following priorities:
- Pit Dewatering: The immediate priority before underground development can commence
- Underground Development: Portal cutting and mine establishment, with first ore to ROM pad targeted approximately six months after portal cutting
- Resource Update: Incorporating results from the completed 17,500 metre diamond drilling program (March 2026)
- Bankable Feasibility Study: Expected release in the September 2026 quarter
Current Permitting Status
| Approval Type | Status |
|---|---|
| Works Approval | Obtained |
| Native Vegetation Clearance | Obtained |
| Groundwater Licence | Outstanding |
| Mine Development and Closure Proposal | Outstanding |
The Investment Case: Capital Efficiency Meets Resource Growth
The Rumble Resources toll milling deal for Western Queen gold project represents a material de-risking event that resolves one of the most complex aspects of mine development whilst preserving Rumble's complete exposure to operational upside.
Key Investment Thesis Elements
Exceptional Capital Efficiency: Pre-development capital of less than $10 million against a Scoping Study NPV of $112 million creates an unusually attractive capital efficiency ratio for gold project development.
Near-Term Production Timeline: Secured processing capacity, partial permitting approvals, and active dewatering preparations support a realistic path to near-term cash generation.
Resource Expansion Potential: The upcoming BFS will incorporate 17,500 metres of new drilling data, with management expressing confidence that additional ounces will be upgraded from Inferred to Indicated categories, potentially expanding the mine plan beyond current Scoping Study parameters.
Tungsten Co-Product Optionality: The maiden tungsten resource of 13,200 tonnes WO3, confirmed metallurgical recoveries, and active scoping study represent genuine — though not yet fully de-risked — secondary revenue potential.
Gold Price Leverage: Current spot gold at approximately $6,350/oz versus the $5,540/oz Scoping Study assumption means incremental production carries materially higher margins than originally modelled.
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Upcoming Catalysts and Timeline Expectations
Rumble has transitioned from exploration to development execution through a series of concrete milestones over the past twelve months. The Rumble Resources toll milling deal for Western Queen gold project continues this progression, with several near-term catalysts approaching.
Next 12 Months
- Updated Mineral Resource Estimate incorporating March 2026 drill program results
- Bankable Feasibility Study completion (September 2026 quarter target)
- Tungsten scoping study outcomes
- Final permitting approvals
- Final investment decision and production commencement timeline
The company maintains 100% equity in Western Queen and the surrounding Wardawarra Project, ensuring shareholders retain complete exposure to value creation without joint venture partner dilution.
What Sets Western Queen Apart?
The combination of established production history, expanded resource base, minimal capital requirements, secured processing pathway, and emerging tungsten co-product potential creates a development profile that differs materially from typical junior gold stories.
With current gold prices providing additional margin above Scoping Study assumptions, this is consequently a project approaching the critical transition from development to production.
The Rumble Resources toll milling deal for Western Queen gold project eliminates the most capital-intensive development hurdle whilst preserving complete operational leverage — positioning Rumble Resources as a company worth monitoring closely as it advances toward production decisions over the coming quarters.
Want to Learn More About Rumble Resources' Path to Production?
With a toll milling agreement secured, sub-$10 million pre-development capital, and a Scoping Study NPV of $112 million, Rumble Resources (ASX: RTR) is advancing Western Queen toward production with compelling capital efficiency. To explore the full details of the Western Queen gold project, the company's development timeline, and what this milestone means for investors, visit the Rumble Resources website.
