Star of Mangaroon Scoping Study Supports $13M Capital Raise for Expansion

Strong Funding Boosts Exploration Momentum

Dreadnought Resources Ltd (ASX:DRE) has reported a productive quarter ending 31 March 2025, marked by significant progress on its "Finding More Gold, Faster" strategy. Central to this momentum is the successful raising of over A$13 million through a combination of placements, a share purchase plan, and a strategic subscription agreement with Black Cat Syndicate Ltd. This capital injection strengthens Dreadnought’s balance sheet, enabling accelerated exploration and development activities at its flagship Mangaroon gold project and other critical mineral assets.

The company’s robust scoping study for the Star of Mangaroon, released in late January, underpins the economic viability of the project with an estimated 23,300 ounces of gold at a high grade of 12.8 g/t Au. The study projects an operating cash flow of approximately A$40 million over one year at an all-in sustaining cost (AISC) of A$1,800 per ounce, well supported by current gold prices exceeding A$5,000 per ounce.

Strategic Tenement Acquisitions Expand High-Grade Footprint

Dreadnought has consolidated its ground position at Mangaroon through the acquisition of several key tenements (E09/2383, E09/2479, M09/63, E09/2195, and L09/27), all of which exhibit significant potential for high-grade gold and base metals. Notably, the company extended the high-grade gold lode at Steve’s Reward by approximately 700 metres, bringing the total strike length to around 1,000 metres. These acquisitions, some completed and others pending, come with net smelter return royalties, reflecting a balanced approach to growth and capital management.

Advancing Exploration and Development Plans

With funding secured, Dreadnought is advancing drilling programs across multiple prospects including Star of Mangaroon, Popeye, Pritchard’s, Two Peaks, and the Lead Gold Mine. Early April drilling at Star of Mangaroon and Popeye has been completed, with assay results anticipated in May 2025. The company aims to transition into a self-funded explorer by outsourcing development and processing activities to generate positive cash flow, thereby reducing reliance on external market funding.

Beyond gold, Dreadnought is progressing its critical minerals portfolio at Mangaroon, which includes the Yin Ironstone Complex and the Gifford Creek Carbonatite. These deposits host significant rare earth elements (REE), niobium, titanium, phosphate, and scandium resources. The company is actively seeking joint venture partners, particularly in the steel sector, to unlock the niobium potential at the Stinger deposit and advance metallurgical test work.

Corporate and Strategic Partnerships

Corporate activity during the quarter included the divestment of non-core assets to Catalina Resources Ltd and the award of a $120,000 Exploration Incentive Scheme grant to support first-pass drilling at the Inevitable Cu-Au target. Director remuneration was partly settled through options, aligning management incentives with shareholder value creation. The strategic subscription agreement with Black Cat Syndicate Ltd not only provided capital but also secured rights to negotiate development terms for the Star of Mangaroon, highlighting a collaborative approach to project advancement.

Looking ahead, Dreadnought’s exploration focus extends to its Illaara gold project in the Yilgarn region, where high-grade deposits like Metze’s Find offer further growth opportunities. The company is also reviewing its Tarraji-Yampi and Bresnahan projects, maintaining flexibility to partner or divest as appropriate to maximise value.