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Redcastle Resources targets early cash flow from Queen Alexandra and Redcastle Reef gold projects in WA

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By Colin Hay - 
Redcastle non-binding MOU Terra Mining
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Redcastle Resources (ASX: RC1) has identified an opportunity to gain early cash flow from its Queen Alexandra and Redcastle Reef gold deposits in Western Australia.

In a strategic move, the company has signed a non-binding memorandum of understanding (MoU) with privately owned mining services company Terra Mining for the collaborative development of the deposits, located within the company’s 100%-owned tenement ML39/318 in WA’s Eastern Goldfields.

The proposal is an open-book, performance-based profit-sharing structure between the two companies.

Open-pit extraction

Under the agreement, Terra Mining will fund and manage all mining activities related to the initial open-pit extraction of shallow gold mineralisation at Queen Alexandra and Redcastle Reef.

“This agreement marks a key step forward in Redcastle’s relatively short history as a gold exploration business in WA and signals our clear intention to transition into a small-scale gold producer in the coming months while taking the crucial step towards self-funding our future operations,” chair Ray Shaw said.

“This measured strategy of the board thoughtfully balances minimising short-term capital expenditure with preserving the widest range of options for valuable long-term growth potential.”

Cash flow generation

The proposed alliance allows for early cash flow generation from shallow oxide ore, as well as from transitional material and fresh rock down to approximately 70 metres.

Redcastle estimates site construction at the two projects will take two years.

In the meantime, the company is refining a pending 2025 mineral resource estimate release.

Approval process

Redcastle is currently progressing the necessary regulatory approvals to support initial development at Queen Alexandra and Redcastle Reef.

This will include anthropological, flora and fauna field surveys and baseline environmental studies.

“As Redcastle enters this important phase in its development, a strong pipeline of activity is anticipated, driven by the company’s commitment to unlocking the value of its Eastern Goldfields portfolio through early-stage gold production,” Mr Shaw said.