Rising Metal Prices Boost Rover 1 Resource but BFS Outcomes Remain Key

Rover 1 Resource Boost

Castile Resources Ltd has announced a substantial uplift in the Mineral Resource Estimate (MRE) for its polymetallic Rover 1 Project, located in the Tennant Creek region of the Northern Territory. This revision reflects the impact of significantly higher commodity prices for gold, copper, bismuth, and cobalt, which have all reached elevated levels due to geopolitical tensions and supply concerns.

The updated MRE now includes 341,300 ounces of gold, an 8% increase from previous estimates, alongside 97,400 tonnes of copper, up 17%. Notably, the critical co-products bismuth and cobalt have seen even more pronounced gains, with bismuth rising 51% to 8,900 tonnes and cobalt increasing 30% to 5,200 tonnes. The total mineral resource tonnage has expanded by 41% to 7.86 million tonnes, underscoring the growing scale of the deposit.

Strategic Importance of Critical Minerals

Rover 1 is a unique iron-oxide copper gold (IOCG) deposit with significant co-mineralisation of critical metals such as bismuth and cobalt. These metals have become increasingly strategic amid global supply chain uncertainties, particularly given China's dominant role in their production and export restrictions. Castile is actively exploring downstream processing options to maximize extraction and value from these by-products, which were previously considered penalties in concentrate treatment but now represent valuable revenue streams.

Managing Director Mark Hepburn highlighted the importance of these developments, stating that the increased metal inventory combined with soaring metal prices since the 2022 Pre-Feasibility Study substantially improves the project's financial outlook. The company is integrating these updated figures into its ongoing Bankable Feasibility Study (BFS), which aims to optimize revenues and reduce costs by fully leveraging the polymetallic nature of the deposit.

Robust Data and Methodology

The updated resource estimate is underpinned by comprehensive drilling data, including 212 drill holes and rigorous sampling and assay protocols adhering to JORC standards. Advanced geostatistical methods and detailed geological interpretation have been employed to ensure the resource model accurately reflects the deposit's complexity. The inclusion of magnetite, which constitutes a significant volume of the mineralisation, further enhances the project's potential.

Castile's approach also incorporates quality assurance and control measures, including independent reviews and validation of assay data, ensuring confidence in the resource classification. The company anticipates that the BFS will translate this expanded resource base into increased Ore Reserves, higher annual production, and extended mine life.

Looking Ahead

As the Rover 1 Project advances through its BFS phase, Castile is engaging with potential partners and critical mineral producers to explore offtake agreements and financing options. The evolving market dynamics for gold, copper, and critical co-products position Rover 1 as a strategically valuable asset in the global mining landscape.