How Dreadnought’s Star of Mangaroon Upgrade Could Transform Its Gold Prospects

Upgraded Scoping Study Highlights

Dreadnought Resources Ltd has announced a significant upgrade to its scoping study for the Star of Mangaroon gold project, located in Western Australia's Gascoyne region. The updated study reveals a 24% increase in the initial production target, now estimated at approximately 24,700 ounces of gold at a grade of 8.3 grams per tonne. This marks a substantial improvement over the previous study, reflecting additional high-grade, near-surface mineralisation discovered through recent drilling.

Importantly, the study also reports a reduction in the maximum cash drawdown required to bring the project into production, from $10.2 million down to about $5.4 million. This reduction is attributed to updated contractor quotes, refined cost inputs, and a more conservative metallurgical recovery assumption of 96%. The financial model assumes a gold price of $5,500 per ounce, with operating cashflow after capital and tax estimated at $78.2 million and an all-in sustaining cost of $2,020 per ounce.

Project Development and Operational Outlook

The Star of Mangaroon deposit remains open along strike and at depth, offering potential for further resource expansion. The current pit design remains unchanged, with the majority of the additional ounces contained within the existing pit envelope and closer to surface, which supports a streamlined development pathway.

Dreadnought has submitted mining approvals and holds all necessary leases, positioning the project for a smooth transition into production. The company plans to outsource funding, development, haulage, and processing to third parties, a strategy aimed at reducing reliance on market funding and accelerating cashflow generation. Production is targeted to commence in early 2026, with agreements expected to be finalized by the end of 2025.

Exploration and Growth Potential

Beyond the initial open pit, Dreadnought is actively pursuing opportunities to extend the mine life and increase resource ounces. This includes ongoing drilling at nearby prospects such as Pritchard’s Well and exploration across six camp-scale targets including Bordah, High Range North and South, Alma Intrusion, and Minga Bar. The company is also evaluating the potential for underground mining following the open pit phase and investigating gold recovery from an existing heap leach within the mining lease.

With a resource base that is 99% measured and indicated, and exceptional metallurgical recoveries averaging 96%, the project is well positioned to capitalize on the current strong gold price environment. Dreadnought’s Managing Director, Dean Tuck, emphasized the strategic importance of this development, noting that the cashflow generated could fund further exploration and potentially return capital to shareholders.

Risks and Next Steps

While the scoping study presents a compelling economic case, it remains a preliminary assessment with a margin of error of +/-30%. Further definitive studies, including feasibility and environmental assessments, are required before ore reserves can be declared. Funding availability, although supported by the company’s current cash position and track record, is not guaranteed and may impact project timelines or ownership structures.

Dreadnought plans to finalize mining and processing agreements in the December 2025 quarter, secure operational approvals by late 2025 or early 2026, and commence production shortly thereafter. Investors will be watching closely for updates on funding arrangements, exploration results, and regulatory progress.