WIN Metals Fast-Tracks Revival of Historic High-Grade Radio Gold Mine
WIN Metals has completed the acquisition of the Radio Gold Mine, a high-grade asset in Western Australia, and is rapidly advancing exploration and development to unlock near-term production and long-term value.
- Acquisition includes extensive mining infrastructure and partially built processing plant
- Historic production of 71,000 ounces at 38.5g/t gold grade
- Immediate drilling programs targeting near-surface open pit and underground extensions
- Acquisition terms feature upfront cash, shares, and deferred royalty payments
- WIN aims to leverage prior investments and develop on-site processing to reduce costs
Acquisition Completes with Strategic Assets in Place
WIN Metals Ltd (ASX – WIN) has officially completed its acquisition of the Radio Gold Mine from Top Global Mining Pty Ltd, securing a portfolio of tenements and a comprehensive suite of mining and processing infrastructure. Located in the Yilgarn region of Western Australia, approximately 400km east of Perth, the Radio Gold Mine is notable for its historic high-grade gold production and ready-to-restart status.
The acquisition package includes an underground mine with established declines and ore development, a partially constructed 500,000 tonnes per annum processing facility with 70% of concrete footings completed, mobile mining fleets, power generators, and accommodation facilities in nearby Bullfinch. This infrastructure foundation positions WIN to rapidly recommence operations without the delays typical of greenfield projects.
Unlocking Value Through Exploration and Development
WIN is aggressively advancing exploration with a 9,000-metre reverse circulation drilling program underway, focusing on near-surface open pit targets at Radio Repeater, Radio South, and central zones. These targets have been largely overlooked historically but offer potential for rapid cash flow generation. Concurrently, underground mining studies are progressing to extend mineralisation at depth, with the deposit remaining open beyond current drilling limits of 260 metres.
The company plans to update the Mineral Resource Estimate based on drilling results, which will underpin mining studies for both open pit and underground operations. WIN also intends to evaluate historic prospects across the broader tenure, including the Manxman and Queenslander workings, aiming to consolidate value-accretive additions to the project portfolio.
Leveraging Prior Investments and Processing Potential
Previous owners invested over A$30 million in the asset, including plans for an innovative non-cyanide leach processing circuit that was not completed due to financial constraints. WIN aims to capitalize on this prior work by developing a fit-for-purpose crushing, grinding, and gravity circuit, potentially incorporating leaching of gravity tails to maximize gold recovery. Metallurgical test work has demonstrated excellent gravity recovery rates of 87%, supporting this approach.
On-site processing capability is a key strategic advantage, reducing reliance on toll milling and associated delays. This could enhance operational flexibility and cost efficiency as WIN targets near-term production and cash flow generation.
Acquisition Terms and Strategic Outlook
The acquisition was secured on attractive terms, with upfront consideration comprising $500,000 in cash plus $400,000 in cash-equivalent shares issued at $0.02 per share. A deferred royalty structure includes a stepped royalty of 5% of net smelter returns until 18,000 ounces of gold production, followed by a trailing 1.5% royalty in perpetuity. This structure aligns incentives while preserving capital for development.
WIN Metals’ Managing Director Steve Norregaard described the acquisition as transformational, highlighting the asset’s potential to elevate WIN into the ranks of Western Australia’s gold producers. The company’s multi-pronged strategy balances near-term open pit opportunities with longer-term underground development and district-scale exploration, aiming to maximize shareholder value.
Context Within WIN’s Broader Portfolio
The Radio Gold Mine complements WIN’s existing portfolio, which includes the Butchers Creek Gold Project in the Kimberley region, the Mt Edwards Nickel Project, and the Faraday-Trainline Lithium Project in the Southern Goldfields. This diversification across gold, nickel, and lithium resources positions WIN to capitalize on multiple commodity cycles and regional growth opportunities.
With drilling underway and infrastructure in place, WIN Metals is poised to unlock the latent potential of the Radio Gold Mine, leveraging historic high grades and modern exploration techniques to drive production and growth.
Bottom Line?
As WIN Metals accelerates development at Radio, the market will watch closely for drilling results and production milestones that could redefine the company’s growth trajectory.
Questions in the middle?
- How will drilling results impact the updated Mineral Resource Estimate and mine planning?
- What is the timeline and capital requirement for completing the processing facility and restarting production?
- How might the deferred royalty payments affect long-term project economics and cash flow?