Alice Queen’s Horn Island Study Confirms A$706 Million NPV and Fast Payback

Compelling Economics Drive Horn Island Forward

Alice Queen Limited (ASX:AQX) has delivered a Project Definition Study (PDS) that lays out a strong economic case for advancing its Horn Island Gold Project in Queensland. The study projects a pre-tax net present value (NPV) of A$706 million and an internal rate of return (IRR) of 109% based on a gold price of A$6,000 per ounce. With an 11-year mine life producing approximately 466,000 ounces of gold, the project promises robust cash flows and a quick capital payback of just over one year.

The PDS, prepared by Australian Mine Design and Development and other consultants, confirms a life-of-mine EBITDA of A$1.3 billion and highlights an upfront capital cost estimate of A$126 million, including a contingency allowance of A$25 million. The all-in sustaining cost (AISC) is estimated at A$2,971 per ounce, or A$2,877 per ounce net of silver credits, positioning Horn Island competitively in the gold sector.

Resource Update and Mining Plan

Supporting the economic case is an updated JORC Mineral Resource Estimate (MRE) of 21.1 million tonnes at 0.84 grams per tonne gold, containing 569,000 ounces. This includes 404,000 ounces classified as Indicated and 165,000 ounces as Inferred resources. The mining plan focuses on open-cut operations prioritising higher-grade ore in the initial seven years, followed by stockpile processing over four years.

The PDS incorporates innovative ore sorting technology, with TOMRA XRT ore sorting reducing downstream processing requirements while maintaining an overall gold recovery of 86.5%. The processing throughput is set at 1.95 million tonnes per annum of run-of-mine feed, with a CIL plant throughput of 1.2 million tonnes per annum post ore sorting.

Funding and Corporate Developments

To advance the project, Alice Queen completed a non-renounceable pro-rata Rights Issue raising approximately A$3.5 million, with major shareholder Gage Resource Development taking up its full entitlement of around A$2.5 million. The company has appointed GBA Capital to lead project financing, noting the project’s strong credit metrics, including a pre-tax NPV to capital expenditure ratio of 5.6x and an after-tax payback period of about 1.1 years. Funding is expected from a mix of commercial debt, development finance, and potential royalty or streaming arrangements.

On the management front, Adrian Hell has been appointed Exploration Manager, bringing valuable expertise from his previous leadership of Horn Island exploration. Meanwhile, Executive Director Dale McCabe and Company Secretary Anne Adaley resigned post-quarter, with Leonard Math stepping in as Company Secretary and CFO effective September 2026.

Exploration and Next Steps

Alice Queen has scheduled a multi-phase reverse circulation drilling campaign to commence in August 2026, aimed at upgrading resources and expanding the project’s footprint. The company also reported an Exploration Target highlighting potential for a large-scale gold system beyond the current resource, encompassing hard rock veins, historic stockpiles, tailings, and alluvial zones.

The PDS recommends progressing to a Pre-Feasibility Study over 18 to 24 months, including dewatering the existing pit, further drilling to upgrade inferred resources, metallurgical and environmental studies, and formal permitting. Community engagement and Native Title consultations remain ongoing, with approvals critical to development timelines.

Environmental and Infrastructure Considerations

The project benefits from existing transport and road infrastructure, with the site currently managed under Queensland’s abandoned mine rehabilitation program. The proposed mining recommencement offers an opportunity to address legacy environmental issues with modern rehabilitation plans, including dry stack tailings and lined retention ponds. The PDS anticipates an 18-month approval process spanning Commonwealth, State, and Local jurisdictions.