Rumble Resources (ASX:RTR) has picked up an option to acquire the Western Queen Gold project from Ramelius Resources (ASX:RMS).

The project, which lies 110km from Mount Magnet in WA, has had historic production of 840,000 tonnes at 7.8 grams per tonne gold for 120,000 ounces during its time.

But given the project is within 100km of existing gold mills, the exploration upside at the project would be most exciting for Rumble.

Deep drilling under the existing Western Queen Central Mine has brought up hits of:

  • 6.3m @ 36.09 g/t Au from 305.7m and
  • 11.8m @ 16.08g/t Au from 340.4m

Mineralisation reportedly remains open down plunge as well, which will give Rumble a lot to play with on the exploration front.

An inferred and indicated resources table was previously put together by Monax Mining (ASX:MOX) and subsequently verified by Ramelius, with the figures indicating a combined total of 962,000 tonnes at 3.9g/t for 120,000 ounces.

The figures are based on 32 reverse circulation holes and 16 diamond holes drilled between 1992 and 2017 — but Rumble has its eyes on the gold beneath the Western Queen Central lode.

It says the inferred resource of 130,000 tonnes @ 9g/t beneath the lode is most worthy of follow-up.

To take the option, Rumble will need to satisfy a number of criteria including:

  • Paying $50,000 for the option
  • Spending $200,000 on exploration within nine months
  • A further $50,000 if it wants to extend the option period
  • $1 million in cash or shares if it wants to buy the project outright

 

In other ASX small cap gold news today

Sunstone Metals (ASX:STM) will have a bit more security to beef up exploration, after it snagged an options underwriting deal with Morgans. It has nearly 155 million options with an exercise price of 3c out for expiry at the end of August — and all up the company will net $4.6 million. It will use the cash to ramp up gold drilling in Ecuador.
 
Mako Gold (ASX:MKG) will extend its footprint in Cote D’Ivoire with two new permit applications. The two permits cover 296 sq km, with 17 line kilometres of greenstone-granite contact. Crucially, they’re on the same greenstone belt which hosts Barrick’s 4.9 million ounce Tongon gold mine.
 Finally, Millennium Minerals (ASX:MOY) has continued its upward production trend, up to 7017 ounces for July. The increase in production means it was also able to draw down on a mezzanine debt facility, giving it $5 million.