Rumble Resources Launches Extensive Drilling Program at Western Queen Gold Project
RTR (RTR) Share Update November 2024 Tuesday 19th
Rumble Resources Initiates Major Drilling Program at Western Queen
Rumble Resources Ltd (ASX: RTR) has announced the commencement of an ambitious drilling program at its Western Queen gold-tungsten project, aiming to uncover new high-grade gold zones and expand existing resources.
Instant Summary:
- 20,000m drill program initiated, including 15,000m of RC and 5,000m of diamond drilling.
- Targeting high-grade gold and tungsten mineralization beneath key deposits.
- Potential to increase current resources of 286,600oz at 2.02g/t Au.
- Drill for equity arrangement with Topdrill, up to $1 million in equity.
- Located within 100km of three gold processing facilities.
Drilling Program Details
Rumble Resources has embarked on a significant exploration initiative at the Western Queen project, with a total of 20,000 meters of drilling planned. This includes 15,000 meters of reverse circulation (RC) drilling and 5,000 meters of diamond drilling. The program is designed to target high-grade gold and tungsten mineralization beneath the Western Queen South, Princess, Marquis, Duke, and Western Queen Central deposits.
The drilling will be conducted in two phases, with the first phase expected to conclude by the end of the calendar year. The second phase will begin in early 2025, leveraging results from the initial phase to refine targeting strategies. The primary goal is to explore down-plunge extensions of previously intercepted mineralization along the 2.7km project area.
Resource Potential and Historical Context
Following a recent 76% increase in gold resources, the Western Queen project now boasts 4.42 million tonnes at 2.02g/t Au for 286,600 ounces. The mineralization remains open along strike and at depth, presenting significant opportunities for resource expansion. Historical mining activities at Western Queen recovered 215,000 ounces of gold from 880,000 tonnes at 7.6g/t Au, underscoring the area's potential for further high-grade discoveries.
Strategic Partnerships and Financial Arrangements
The drilling program is being executed under a 'drill for equity' arrangement with Topdrill, allowing Rumble to convert up to 50% of drilling costs into equity, capped at $1 million. This innovative approach provides financial flexibility and aligns the interests of both parties in the project's success.
The Western Queen project is strategically located within a 100km radius of three operational gold processing facilities, offering potential for near-term toll treating options. This proximity enhances the project's economic viability and supports Rumble's exploration and development strategy.
The commencement of this extensive drilling program is a positive development for Rumble Resources, potentially leading to a significant increase in gold resources. The strategic location of the Western Queen project, combined with the innovative financial arrangement with Topdrill, positions Rumble well for future growth. The market may respond favorably to these developments, reflecting increased investor confidence in the company's exploration capabilities.
Investor Reaction:
Analysts are likely to view the drilling program as a strategic move to enhance Rumble's resource base and capitalize on the high-grade potential of the Western Queen project. The drill for equity arrangement may also be seen as a prudent financial strategy, reducing upfront cash expenditures while maintaining project momentum.
Conclusion:
Investors should closely monitor the progress of the drilling program and its results, as they could significantly impact Rumble's resource estimates and market valuation. The company's ability to execute its exploration strategy and deliver resource growth will be key to sustaining investor interest and confidence.