Rumble Resources opens doors to Western Queen development

Bain Global Resources and MEGA Resources have entered into an Indicative Non-Binding Term Sheet with Rumble Resources to develop the open pit resources at the Western Queen gold project

The parties will now negotiate the commercial arrangements including a JV Agreement and Mining Services Agreement, with the aim of signing by February 28

The plan is to cut back and deepen the existing Western Queen South open pit, with a JORC Resource of ~1.42Mt at 1.59 grams per tonne (g/t) for ~72.5koz gold, and some of the smaller open pits

Special Report: The Western Queen gold project has just scored a major breakthrough with Bain Global Resources and MEGA Resources (MEGA) signing a Term Sheet with project owner Rumble Resources to develop the open pit resources.

After a 76% increase in gold resources announced last month, Western Queen’s resources now stand at 4.42Mt at 2.02 g/t gold for 286,600oz.

There’s also potential for further resource growth with mineralisation open along strike and at depth within the main 2.7km project area. Rumble is currently targeting the discovery of new high-grade plunging shoots at the project in a 20,000-metre drill program.

As it works to unlock the value of Western Queen, Rumble Resources (ASX:RTR) has entered into the Indicative Non-Binding Term Sheet with the key features:

MEGA will provide the open-pit mining contract services and pay all costs up to a maximum of $25 million in development and working capital, with no investment required by Rumble. A further $10 million cost overrun facility is also available.
Rumble and strategic investor Bain will share the free cashflow from the Western Queen open pits after the initial development costs are recovered.
The parties will now negotiate the commercial arrangements including a Joint Venture Agreement and Mining Services Agreement, with the aim to sign these agreements by February 28, 2025 at the latest.

The plan is to cut back and deepen the existing Western Queen South open pit, which has a JORC Resource of ~1.42Mt at 1.59 grams per tonne (g/t) for ~72.5koz of gold, and some of the smaller open pits such as Duke and Princess.

Rumble’s managing director and CEO Peter Harold said: “We are pleased to have the opportunity to go into business with one of the largest mining contractors in India, through its Australian subsidiary MEGA, to monetise the open-pit gold resources at Western Queen.

“Bain Global Resources have been keen to expand their operations in Australia and we are delighted they have agreed to assist Rumble and develop our Western Queen project.

“We are also pleased they have already come on board as shareholders of Rumble, through their subsidiary Bain Resources Holdings, and look forward to a long and mutually beneficial relationship with them.

“In addition to Western Queen, Bain and MEGA are interested in our Earaheedy zinc-lead-silver project given the size of the resource and the potential for it to be a large-scale, open-pit mining and processing operation in the future.

“Subject to entry into definitive binding documentation, the Rumble Board and management team look forward to working with Bain and MEGA to unlock the value of the Western Queen gold project.”

Rumble is now focused on executing the definitive agreements, confirming project economics, securing an ore tolling/ore sale agreement with a local gold process plant and obtaining all the necessary approvals for mining ahead of a Final Investment Decision for Western Queen.

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.