How Will Rumble’s Revised Mine Plan and Tungsten Prospect Shape Western Queen’s Future?
Rumble Resources updates its Western Queen Gold Project with a revised open pit mine plan that increases capital needs, explores underground mining, and eyes a new tungsten revenue stream.
- Updated open pit mine plan increases strip ratio and working capital requirements
- Underground mining proof of concept study underway to assess alternative extraction methods
- Permitting documents for open pit development to be lodged in early June
- Maiden tungsten resource expected in September quarter with metallurgical testing ongoing
- Signing of Co-operation Agreement with Bain and MEGA deferred pending optimisation studies
Revised Mine Plan and Capital Implications
Rumble Resources has provided a significant update on the development of its Western Queen Gold Project, revealing changes to the open pit mine plan that have increased the strip ratio and, consequently, the upfront working capital required. The revised plan, prepared by MEGA Resources, adjusts pit sequencing and incorporates new geotechnical data, pushing the capital needed beyond the previously outlined $35 million facility. This has prompted Rumble and its financing partner Bain Global Resources to initiate a re-optimisation process aimed at maximising free cash flow and refining capital commitments.
Exploring Underground Mining as an Alternative
In response to the heightened capital demands of the open pit approach, Rumble has launched a “proof of concept” study into underground mining at the Western Queen South deposit. This study will evaluate whether underground extraction could offer a more capital-efficient or economically viable alternative. Should results prove promising, a detailed underground mine plan will follow, potentially reshaping the project’s development trajectory.
Progress on Permitting and Processing Partnerships
Permitting efforts are advancing steadily, with MEGA Resources preparing the necessary documentation for the Mining Proposal, Mine Closure Plan, and Works Approval, targeting submission in early June. Meanwhile, Rumble continues discussions with owners of nearby gold processing plants, some currently on care and maintenance, exploring options for third-party ore processing that could support the project’s operational needs starting in 2026.
Potential New Revenue from Tungsten
Adding a new dimension to the project’s value proposition, Rumble is progressing metallurgical testwork and resource estimation for tungsten mineralisation at Western Queen South. Preliminary results suggest a significant revenue stream could be generated from scheelite-bearing material, with a maiden tungsten resource expected in the September quarter. This could diversify income sources and enhance project economics if tungsten extraction can be integrated with gold mining operations.
Strategic Agreements and Royalty Opportunities
The Co-operation Agreement between Rumble, Bain Global Resources, and MEGA Resources, which governs mining, financing, and revenue sharing, is finalized but signing has been deferred until optimisation studies conclude. The execution deadline has been extended to 30 September 2025, reflecting the need for further technical and commercial clarity. Additionally, Rumble is considering selling an additional 1-2% Net Smelter Return gold royalty for an upfront cash payment, a move that could bolster working capital with limited impact on future cash flows.
Bottom Line?
As Rumble navigates rising costs and new revenue avenues, the next few months will be pivotal in defining Western Queen’s path to production.
Questions in the middle?
- Will the underground mining study shift the project away from open pit development?
- How significant could the tungsten revenue stream be relative to gold production?
- What impact will the deferred signing of the Co-operation Agreement have on project timelines?
