ASX-listed Rumble Resources is making progress advancing its Western Queen gold project in Western Australia, entering into an indicative non-binding term sheet with Bain Global Resources (Bain) and MEGA Resources (MEGA) to develop certain openpit resources at the project.

Under the agreement, MEGA will provide openpit mining contract services, while Bain will fund up to A$25-million in development and working capital. Further, a A$10-million cost overrun facility will be available if required, ensuring Rumble is not required to contribute any capital. Once the initial development and working capital costs are recouped, Rumble and Bain will share the remaining free cash flow from the project.

The proposed mine development involves cutting back and deepening the existing Western Queen South openpit, which has a resource of about 1.42-million tonnes at 1.59 g/t gold for an estimated 72 500 oz. Mining of smaller openpits within the project area is also being considered.

Rumble says development activities are well under way, with discussions ongoing regarding ore tolling or direct ore sales to nearby gold processing plants. MEGA has completed a preliminary mine schedule, which has been shared with Rumble and potential processing partners. The permitting and approval process, also managed by MEGA, is progressing.

Meanwhile, Bain and MEGA have purchased all major pieces of mobile mining equipment, which are scheduled to arrive in Australia by mid-year. The parties are currently finalising definitive agreements, including a joint venture agreement and a mining services agreement, with execution deadlines extended to April 15, 2025, owing to structuring considerations and independent tax advice requirements.

“We are delighted with the speed and professionalism that MEGA has shown in managing this project. They are already well advanced with the mine planning, equipment acquisition, and the permitting and approvals process. We are targeting first ore before the end of this calendar year, and based on the quality of the MEGA team and the level of activity, I believe that is an achievable goal," said Rumble MD and CEO Peter Harold.

The project remains on track for first ore before year-end, pending final investment decision milestones, including binding agreements, a detailed mining plan and financial model, an ore processing agreement, and regulatory approvals.

Rumble in October announced an increase in the Western Queen resource to 287 000 oz at 2.02 g/t gold.