Rumble Resources reports multiple high-grade gold and tungsten intercepts from its Western Queen project, advancing underground mine development with strong economic indicators and ongoing permitting progress.
- Major diamond drilling campaign delivers exceptional gold grades including 5.8m at 30.72g/t Au
- Western Queen South underground scoping study shows robust economics with $133M free cash flow
- Tungsten maiden resource confirmed with potential for expansion
- Negotiations underway for third-party ore processing agreement with Gylden Resources
- Corporate updates include Bain Resources exit and $5.6 million cash balance
Western Queen Drilling Breakthroughs
Rumble Resources Limited has made significant strides in its December 2025 quarter, spearheaded by a 20,000-metre diamond drilling campaign at the Western Queen Gold-Tungsten Project near Mt Magnet, Western Australia. The drilling has yielded multiple high-grade gold intercepts, notably a standout 5.8 metres at 30.72 grams per tonne gold beneath historical underground workings at Western Queen Central. Numerous other intercepts at Western Queen South, including intervals exceeding 6 grams per tonne, underscore the project's rich potential.
These results aim to expand the current gold Mineral Resource Estimate (MRE) of 3.72 million tonnes at 3.1 g/t gold, equating to approximately 370,000 ounces, while also upgrading inferred resources to indicated status to support imminent mining plans.
Tungsten Resource and Metallurgical Advances
Alongside gold, Rumble has confirmed a maiden tungsten resource at Western Queen, with 4.31 million tonnes at 0.31% WO3, containing 13,200 tonnes of tungsten trioxide. High-grade cores within this resource highlight promising zones for further exploration. A metallurgical testwork program is underway to optimise processing flowsheets and recoveries, critical for integrating tungsten into the project's economic framework.
Underground Mining Scoping Study and Economics
Following a strategic pivot from open pit to underground mining, Rumble commissioned an independent scoping study focused on Western Queen South. The study reveals compelling economics, a production target of 617,000 tonnes at 2.95 g/t gold for 58,500 ounces, with an estimated free cash flow of $133 million and a net present value of $112 million at an 8% discount rate, based on a conservative gold price of A$5,540 per ounce. The internal rate of return is an impressive 370%, supported by low upfront capital expenditure under $10 million and all-in sustaining costs of A$2,970 per ounce.
Importantly, only 29% of the current resource is included in this initial production target, suggesting significant upside potential to extend mine life through ongoing drilling and resource upgrades.
Third-Party Processing and Permitting Progress
Rumble has signed a non-binding Memorandum of Understanding with Gylden Resources to potentially toll treat ore at Gylden’s Kirkalocka plant, approximately 180 kilometres from Western Queen. Negotiations for a formal toll treating agreement are advancing, which would enable Rumble to expedite production without the need for immediate capital-intensive processing infrastructure.
On the regulatory front, Rumble has submitted all necessary documentation for underground mining approvals, including a revised Mining Development and Closure Proposal, with groundwater and environmental permits under assessment. The company has withdrawn its previous open pit mining proposal to align with the underground strategy.
Corporate and Financial Overview
Corporate developments include the exit of Bain Resources Holding as a significant shareholder, reflecting the strategic shift in mining approach. Rumble successfully completed a capital raising during the quarter and ended December 2025 with approximately $5.6 million in cash. Operating cash outflows remain negative, driven primarily by exploration and evaluation activities, but the company expects to manage funding through prudent expenditure and potential royalty sales.
Meanwhile, metallurgical testwork has commenced at the Earaheedy Zinc-Lead-Silver Project, aiming to optimise concentrate specifications and advance this emerging asset. Other exploration projects across Western Australia remain on hold with no significant activity reported during the quarter.
Bottom Line?
Rumble’s robust drilling results and underground mine economics position Western Queen for a promising development phase, but timely permitting and processing agreements will be critical next steps.
Questions in the middle?
- Will Rumble successfully convert inferred resources to indicated to expand the mine plan?
- How soon can the toll treating agreement with Gylden Resources be finalised and operational?
- What impact will a potential gold royalty sale have on Rumble’s long-term cash flow and project economics?