Alice Queen Limited has bolstered its Horn Island gold project with an updated resource of 569,000 ounces and a robust Project Definition Study showing a pre-tax NPV of A$706 million. A 2026 drilling program is underway to test a large-scale Exploration Target of up to 2.3 million ounces.
- Updated Mineral Resource Estimate of 569koz gold
- Project Definition Study delivers A$706M pre-tax NPV and 109% IRR
- 2026 drilling program targets resource expansion and grade improvement
- Exploration Target conceptual range of 1.5–2.3Moz gold
- Major shareholder Gage Resource Development holds 51%
Horn Island Project Economics Signal Strong Value Potential
Alice Queen Limited (ASX:AQX) has delivered a compelling update on its Horn Island gold project, spotlighting a Project Definition Study (PDS) that pegs the pre-tax net present value at A$706 million with an internal rate of return of 109%. The study envisions an 11-year mine life producing approximately 466,000 ounces of gold, with upfront capital expenditure of A$126 million and a break-even gold price well below current spot levels at A$3,709 per ounce.
Life-of-mine EBITDA is forecast at A$1.3 billion, supported by an all-in sustaining cost of A$2,971 per ounce. The project’s rapid capital payback period of about 1.1 years post-tax underscores the potential for swift returns once operational.
Resource Growth and Exploration Target Expand the Project’s Footprint
The updated Mineral Resource Estimate (MRE) for Horn Island now stands at 569,000 ounces of gold contained within 21.1 million tonnes at a grade of 0.84 g/t, representing a 45,000-ounce increase from the 2021 estimate. Notably, 71% of this resource is classified as Indicated, improving the confidence level for development planning.
Beyond the defined resource, Alice Queen has announced a conceptual Exploration Target ranging between 1.5 and 2.3 million ounces of gold. This target combines hard rock domains and legacy stockpiles, tailings, and alluvial deposits, with tonnage estimates between 59.7 and 89.6 million tonnes. The Exploration Target remains conceptual, with insufficient drilling to classify it as a Mineral Resource, but it highlights significant upside potential adjacent to and beneath the historic open pit.
2026 Drilling Program Aims to Unlock Further Value
A multi-faceted drilling campaign is underway, targeting approximately 5,000 metres to test extensions of the existing resource and satellite targets such as Southern Silicified Ridge and Cable Bay. The program aims to improve geological and grade continuity, identify higher-grade zones, and delineate near-surface stockpiles that could support a lower-cost or accelerated development pathway.
This drilling is designed to feed into ongoing feasibility studies and refine the project’s economic outlook. The campaign also reflects a strategic push to capitalise on Horn Island’s district-scale landholding within the Kennedy Igneous Province, a prolific gold region with over 20 million ounces in combined endowment.
Corporate and Regional Infrastructure Supports Development
Major shareholder Gage Resource Development Pty Ltd, a subsidiary of Beijing Gage Capital Management with US$1.6 billion under management, holds a 51% stake in Alice Queen. The company’s board includes experienced directors such as Managing Director Andrew Buxton and Non-Executive Chairman Wang Jianying.
Horn Island benefits from significant existing infrastructure, including proximity to Thursday Island, which serves as the administrative centre of the Torres Strait with government services, healthcare, retail, and ferry links to the project area. This infrastructure underpins logistical feasibility for the planned mining operations.
Exploration Beyond Horn Island and Forward-Looking Considerations
Alice Queen also holds exploration assets in Fiji and the Lachlan Fold Belt, with early-stage work underway on epithermal and porphyry targets. While these projects remain exploratory, they complement the company’s core focus on advancing Horn Island towards production.
The company’s forward-looking statements emphasise inherent risks and uncertainties, particularly regarding the conceptual Exploration Target and the outcomes of ongoing drilling and feasibility studies. Investors should note that the Exploration Target is not yet a Mineral Resource and that project economics are based on assumptions including a gold price of A$6,000 per ounce.
Bottom Line?
Alice Queen’s Horn Island project is shaping up as a robust development opportunity, but upcoming drilling results and feasibility milestones will be critical to validating the large-scale Exploration Target and securing project finance.
Questions in the middle?
- Will the 2026 drilling program confirm extensions to the Mineral Resource and enhance grade profiles as planned?
- How will the company progress project financing given the upfront capital requirements and current market conditions?
- What are the timelines and key hurdles for advancing from the Project Definition Study to definitive feasibility and production?