Alice Queen Mobilises Drill Rig to Test Large-Scale Gold Potential at Horn Island
Alice Queen has deployed a dual-purpose drill rig to Horn Island, initiating a multi-phase program aimed at expanding its substantial gold resource and exploring new mineralised zones.
- Dual-purpose drill rig mobilised to Horn Island
- Multi-phase drilling targets Exploration Target areas
- Current JORC resource: 21.1Mt at 0.84 g/t Au for 569,000 ounces
- Exploration Target suggests up to 2.29 million ounces gold potential
- Drilling supports advancing Pre-Feasibility Study
Drill Rig Deployment Marks New Exploration Phase
Alice Queen Limited (ASX:AQX) has mobilised a versatile, track-mounted drill rig to its Horn Island Gold Project in Queensland, signalling the start of a multi-phase drilling campaign. This is the first time in several years that the company has had a rig on site, underscoring a renewed push to expand the project’s gold resource amid a strong gold price environment.
Exploration Target Outlines Significant Upside
The drilling program is designed to test recently announced Exploration Target areas that outline the conceptual potential for a large-scale gold mineralised system beyond the current Mineral Resource Estimate (MRE). Horn Island’s existing JORC 2012 MRE stands at 21.1 million tonnes grading 0.84 grams per tonne gold, containing approximately 569,000 ounces of gold. However, the Exploration Target, which remains conceptual and unclassified as a resource, suggests an additional 1.53 to 2.29 million ounces gold across hard rock, stockpiles, tailings, and alluvial domains.
Targeting Extensions and New Zones
The multi-phase campaign will focus on continuity of mineralisation along the northwest structural trend extending from the existing resource, down-dip extensions to the south, and shallow zones in the northeast. It will also evaluate high-grade continuity within the current resource and potential extensions. The rig’s dual capability for reverse circulation and diamond core drilling allows flexible testing of both near-surface and deeper targets, enhancing the quality and scope of geological data.
Funding and Development Progress
The drilling program is led by the company’s technical team under exploration manager Adrian Hell and is funded through proceeds from a recent partially underwritten Entitlement Offer. This exploration effort runs in parallel with the company’s development work, following the release of a Project Definition Study that confirmed compelling economics for Horn Island. The study highlighted a pre-tax NPV of A$706 million and an IRR of 109%, supporting plans to advance towards a Pre-Feasibility Study and eventual mine development.
Historic Data and Exploration Framework
The Exploration Target incorporates data from 246 drill holes, including 52 within the target areas, historic drilling, surface sampling, and legacy stockpile assessments. While historic data remains incomplete and subject to validation, it provides a valuable framework for prioritising drill targets. The company’s methodical approach aims to convert conceptual targets into defined Mineral Resources, a critical step for project valuation and financing.
Bottom Line?
Drilling results from Horn Island will be pivotal in defining the scale and grade of the gold system, shaping the project’s next development milestones.
Questions in the middle?
- Will early drilling confirm continuity of high-grade zones beyond the current resource?
- How quickly can Alice Queen convert Exploration Targets into JORC-classified Mineral Resources?
- What impact will drilling outcomes have on the timeline and financing of the Pre-Feasibility Study?
