Redcastle’s Mineral Resource Estimate Jumps 280% to 42,000 Ounces Gold

Significant Resource Upgrade

Redcastle Resources Ltd (ASX – RC1) has delivered a major milestone with an updated Mineral Resource Estimate (MRE) for its flagship Queen Alexandra and Redcastle Reef gold deposits in Western Australia's Eastern Goldfields. The combined MRE now stands at 488,000 tonnes grading 2.7 grams per tonne gold, equating to 42,000 ounces; a remarkable 280% increase from the company's maiden resource announced earlier in 2024.

The Queen Alexandra deposit was upgraded to 265,000 tonnes at 3.4 g/t Au for 29,000 ounces, while Redcastle Reef recorded its maiden resource of 224,000 tonnes at 1.8 g/t Au for 13,000 ounces. The proximity of these deposits, approximately 700 metres apart, presents a compelling opportunity for co-development, potentially sharing infrastructure and reducing operating costs.

Drilling and Metallurgical Progress

The updated resource incorporates new assay results from the December 2024 to March 2025 Reverse Circulation drilling program, which notably refined the geometry and grade continuity of the high-grade Kestrel Lode at Queen Alexandra. Highlights include multiple high-grade intercepts such as 7 metres at 10.16 g/t Au and 3 metres at 26.6 g/t Au, underscoring the deposit's potential for early-stage open-pit mining.

Metallurgical testwork conducted by ALS Laboratories has confirmed a robust 92% gold recovery rate, supporting the economic viability of the deposits. Bulk density measurements across oxide, transition, and fresh rock zones have also been established to aid in resource modelling and mine planning.

Strategic Partnership and Environmental Steps

In a strategic move to fast-track development, Redcastle signed a non-binding Memorandum of Understanding with Terra Mining Pty Ltd, an experienced contract miner. Under this agreement, Terra Mining will fund and manage initial open-pit mining activities to approximately 70 metres depth, including drill and blast, load and haul, and ore stockpiling. This performance-based profit-sharing model aims to generate early cash flow with minimal capital expenditure and shareholder dilution.

Environmental baseline flora and fauna studies have commenced at Queen Alexandra, marking a critical step towards regulatory approvals. These studies comply with Western Australian and Commonwealth environmental legislation, with final reports expected in the second half of 2025.

Financial Position and Outlook

Redcastle ended the quarter with cash reserves of approximately $750,000. The company anticipates a significant reduction in exploration expenditure going forward, having completed the bulk of its drilling program. Management does not foresee an immediate need to raise additional funds, relying instead on the strategic partnership and advancing scoping studies to underpin the project's commercialisation.

With the updated resource base, strong metallurgical recoveries, and a pathway to early mining through the Terra Mining alliance, Redcastle is positioning itself to unlock value in the highly prospective Leonora-Laverton greenstone belt. Investors will be watching closely for forthcoming scoping study results and environmental approvals that will shape the project's next phase.