Funding and Resource Uncertainty Loom Over Revolver’s Dianne Copper Restart

A Strong Business Case Emerges

Revolver Resources Holdings Limited (ASX – RRR) has released the results of an extensive recommencement study for its Dianne Copper Mine Project in northern Queensland. The study outlines a robust economic opportunity, combining modest capital requirements, a short project timeline, and established copper processing techniques to deliver a forecast pre-tax free cashflow of more than $125 million over four years.

Mining and processing approximately 1.65 million tonnes of ore at an average grade of 1.04% copper, the project aims to produce around 14,330 tonnes of Grade-A copper cathode. This output is expected to be achieved through heap leach and solvent extraction-electrowinning (SX-EW) processing, technologies well proven in the industry for their efficiency and cost-effectiveness.

Technical and Operational Foundations

The study integrates the latest 2025 Mineral Resource Estimate (MRE), which includes 86% Indicated and 14% Inferred resources, and comprehensive metallurgical testwork demonstrating high copper recoveries exceeding 95%. The deposit’s amenability to heap leaching and SX-EW processing underpins the project’s technical feasibility.

Mining will be conducted via a single-stage open pit over approximately three years, with a strip ratio of 1.4 – 1. The operation will leverage existing infrastructure within granted mining leases, including access roads, water storage, and temporary facilities, minimising additional environmental disturbance. The project footprint is compact, with a focus on rehabilitating previously disturbed areas.

Financial Metrics and Market Context

Capital expenditure to restart production is estimated at $19.7 million, with operating costs averaging $5,045 per tonne of copper cathode produced. The financial model projects a net present value (NPV) of $69 million at a 10% discount rate and an internal rate of return (IRR) of 35%, with a payback period of approximately 12 months post-construction.

The study assumes a conservative copper price of US$10,500 per tonne and an exchange rate of 0.65 USD/AUD, despite bullish market forecasts from major banks anticipating further price increases driven by accelerating demand for copper in renewable energy and electric vehicles. Revolver’s Managing Director, Pat Williams, highlighted the project’s potential to generate significant free cashflow to fund further growth initiatives, including exploration at Dianne and the nearby Osprey Copper Project.

Permitting and Funding Progress

The project benefits from granted mining leases and an existing Environmental Authority, with administrative amendments underway to accommodate recommencement of mining and processing activities. Revolver is in advanced discussions with potential debt and equity financiers, confident in securing funding to support construction and commissioning, targeted within 2026.

Construction is planned to take six months, followed by a three-month pre-revenue ramp-up period. The company’s comprehensive Project Execution Plan aims to ensure timely delivery and operational readiness.

Looking Ahead

While no Ore Reserves have yet been declared and the study includes Inferred Mineral Resources with inherent geological uncertainty, the project’s strong economic indicators, low capital intensity, and short mine life position it well to capitalise on a tightening copper market. The Dianne Project could provide a valuable near-term cashflow platform for Revolver Resources as it pursues broader growth ambitions.