Redcastle’s Production Plans Hinge on JV Execution and Processing Deals

Strategic Partnership to Unlock Production

Redcastle Resources Ltd (ASX – RC1) has taken a decisive step towards becoming a gold producer with the formation of a joint venture (JV) alongside BML Ventures Pty Ltd, a well-established mining contractor based in Kalgoorlie. This JV agreement commits BML to fully fund working capital and manage all mining operations at Redcastle’s Queen Alexandra (QA) and Redcastle Reef (RR) deposits, providing a capital-light pathway to production targeted for the first half of 2026.

The partnership aligns the interests of both parties, with BML also participating significantly in Redcastle’s recent $4 million capital raising. This financial backing strengthens Redcastle’s balance sheet while leveraging BML’s operational expertise to expedite mine development and approvals.

District-Scale Expansion Bolsters Growth Potential

Complementing the JV, Redcastle has substantially expanded its landholding in the Eastern Goldfields region of Western Australia. The acquisition of the TBone Belt tenement package, covering approximately 70 square kilometres contiguous to existing tenements, increases Redcastle’s total footprint to around 85 square kilometres. Additionally, the company secured a strategic prospecting licence (P39/5838) that further consolidates its position in this prolific gold district.

This expansion not only enhances Redcastle’s exploration pipeline with multiple high-priority targets but also situates the company at the heart of a historically rich gold-producing corridor, benefiting from established infrastructure and proximity to active mining centres.

Positive Scoping Study Validates Near-Term Production

Earlier in the quarter, Redcastle released a positive Scoping Study for the Queen Alexandra deposit, which underpins the JV’s production plans. The study projects a 10-month mine life producing approximately 13,700 ounces of gold with a breakeven gold price near AU$3,700 per ounce. At current gold prices around AU$4,800 per ounce, the project is forecast to generate robust cash flows, with an estimated pre-tax surplus of AU$14–15 million.

The study assumes conventional open-pit mining with contract mining and toll treatment arrangements, aligning well with the JV’s operational model. While the study focuses on shallow pits, there is upside potential from deeper lodes that may be accessed through future underground mining.

Operational Progress and Upcoming Work Programs

JV activities have advanced rapidly, with BML undertaking preparatory work including waste rock characterisation, native vegetation permit applications, and planning for multiple drilling campaigns. These campaigns will support grade control, pit wall stability assessments, sterilisation drilling, and exploration of deeper lodes beneath Queen Alexandra.

Negotiations for processing capacity at third-party mills are underway, although details remain confidential. The final investment decision is anticipated by the end of 2025, contingent on regulatory approvals and completion of detailed mine planning.

Capital Structure Optimization and Financial Position

Redcastle’s recent capital raising was well supported, including a $1.5 million cornerstone investment from BML, reinforcing the JV partnership. The company plans a 10 – 1 share consolidation to streamline its capital structure and improve appeal to institutional investors. Alongside this, a Loyalty Option Entitlement Offer is proposed to raise additional working capital.

At quarter-end, Redcastle held approximately $2 million in cash, with exploration and evaluation expenditure focused on drilling and geological studies across the expanded tenement package. The company is positioned to maintain its development momentum as it transitions towards production.