WIN Metals has completed a preliminary study for the Radio Gold Project, revealing a low-capital restart plan targeting 20,200 ounces of gold production over 29 months with an 11-month payback period.
- Preliminary study forecasts A$18 million pre-tax NPV and 84% IRR at A$6,000/oz gold
- Peak funding requirement estimated at approximately A$19 million pre-finance
- Initial production target of 215kt at 3.16g/t Au for 20.2koz recovered gold
- Project leverages existing mine infrastructure and secured processing equipment
- Study excludes potential regional extensions and third-party feed opportunities
Low-Capital Restart Plan Targets Near-Term Gold Production
WIN Metals Ltd (ASX:WIN) has mapped out a clear, low-capital pathway to restart gold production at its Radio Gold Project in Western Australia. The recently completed Radio Re-Start Study proposes an integrated open-pit and underground operation feeding a dedicated 120,000 tonnes per annum carbon-in-leach (CIL) processing plant, with a modest peak pre-finance funding requirement of about A$19 million.
At a gold price assumption of A$6,000 per ounce, the base case projects a pre-tax net present value (NPV8) of A$18 million, an 84% internal rate of return (IRR), and undiscounted pre-tax cash flow of A$23 million. The study forecasts payback of the initial capital within 11 months from first gold production, signalling a potentially rapid return on investment.
Production Target and Resource Confidence
The initial production target is set at 215,000 tonnes at 3.16 grams per tonne gold, expected to yield approximately 20,200 ounces of recovered gold over a 29-month processing schedule. Of this, 86% of the production target tonnage is derived from Indicated Mineral Resources, with the remaining 14% from Inferred Mineral Resources. Notably, 91% of forecast gold production in the first two years comes from Indicated Resources, reflecting relatively higher geological confidence early in the mine life.
WIN cautions that the inclusion of Inferred Resources carries a low level of geological confidence and that there is no guarantee that further drilling will convert these to Indicated Resources or that the production target will be realised. The company intends to undertake infill drilling and underground grade control ahead of mining to mitigate this uncertainty.
Leveraging Existing Infrastructure and Equipment
The study capitalises on substantial existing underground development, site infrastructure, and processing equipment secured under a prior option arrangement. This reduces the new-build scope considerably, with the processing plant capital expenditure estimated at A$8.3 million and the total life-of-mine capital cost around A$33 million, including sustaining capital.
The processing plant design, developed by Mining Engineering Services Australia (MESA), includes mobile three-stage crushing, ball milling, gravity recovery, and CIL treatment, with offsite carbon stripping. The plant is expected to achieve 95% gold recovery for Radio ore and 90% for Princess Royal tailings, the latter being an Indicated Mineral Resource included in the study.
Financial Sensitivities and Funding Outlook
The project’s economics remain robust under a range of gold price scenarios. Even at a downside gold price of A$5,100 per ounce, the study forecasts positive pre-tax cash flow, a pre-tax NPV8 of approximately A$3 million, a 21% IRR, and a 19-month payback period. This sensitivity analysis highlights some resilience to gold price volatility, a key risk factor.
However, funding remains unsecured at this stage. WIN plans to explore a mix of debt and equity financing, along with alternative structures such as gold prepayment, forward sales, royalty or streaming arrangements, or project-level investment. The company acknowledges that funding terms could dilute existing shareholders or reduce its economic interest in the project.
Regulatory Approvals and Development Timeline
WIN is advancing regulatory approvals, targeting lodgement of key applications by the end of August 2026. Subject to approvals, financing, and a final investment decision (FID), development activities are aimed to commence in early 2027. The project also requires realignment of the Mt Jackson Road, which is pending final engineering and approvals.
Growth Opportunities Beyond Base Case
The study deliberately excludes several potential growth avenues, including extensions to the Radio and Repeater lodes, the Princess Royal hard-rock mineralisation, other WIN-owned regional deposits, and third-party feed or toll-treatment arrangements. These represent upside optionality that could enhance plant utilisation and project economics if successfully developed.
Of particular note is the Princess Royal hard-rock exploration target, estimated at 26,000 to 40,000 tonnes at 8 to 12 grams per tonne gold, potentially containing 7,000 to 15,000 ounces. This target remains conceptual pending further drilling and evaluation.
Key Risks and Uncertainties
WIN highlights several risks inherent to the project, including gold price fluctuations, geological uncertainty especially related to Inferred Resources, funding availability and terms, regulatory approvals, and operational risks such as mining productivity and metallurgical performance. The study’s ±20% accuracy range underscores the preliminary nature of the assessment.
The company also notes the narrow-vein nature of the deposit, which can complicate grade reconciliation and mining dilution. Historical mining and bulk-treatment programs provide some context but do not guarantee future outcomes.
Overall, the Radio Re-Start Study presents a cautiously optimistic blueprint for WIN Metals to emerge as a gold producer with a relatively modest capital outlay, leveraging existing assets and infrastructure. The path to first gold hinges on securing financing, regulatory green lights, and a final investment decision, with exploration upside remaining an enticing prospect for the future.
Bottom Line?
WIN Metals’ Radio Gold Project restart hinges on securing A$19 million funding and regulatory approvals to convert a promising study into production.
Questions in the middle?
- How will WIN Metals approach funding to minimise shareholder dilution while securing the A$19 million needed?
- What impact will further drilling have on converting Inferred Resources to Indicated and refining the production target?
- Could regional extensions or third-party feed materially improve plant utilisation and project economics?