en.Wedoany.com Reported - Alice Queen (ASX:AQX) has announced new exploration targets for the Horn Island gold project in the Torres Strait, far north Queensland, aiming to increase current resources to over one million ounces. The company has drilled over 30,000 meters on Horn Island and has defined a gold resource of 16.7 million tonnes at 0.98 grams per tonne, representing 524,000 ounces of gold.
The Horn Island project is an Intrusion-Related Gold System (IRGS) with a gold mining history dating back to the late 19th century, with operations continuing until the 1980s before ceasing. Alice Queen Managing Director Andrew Buxton stated that the company spent approximately three years working with the Queensland government to lift a development moratorium and formed a joint venture with the Kaurareg Aboriginal people, who now hold a 7.5% free-carried interest in the project. The project benefits from all-weather road networks, a deep-water port, an international airport, and infrastructure support from nearby towns.
Alice Queen outlined two clear growth areas. The first target is hard rock exploration, with a resource estimate of 34.6 to 52 million tonnes at 0.88 g/t to 1.32 g/t gold, corresponding to 1.22 to 1.83 million ounces. The second target is stockpiles, tailings, and alluvium, corresponding to 310,000 to 460,000 ounces. Buxton stated that exploration is focused on the northwestern extension of the existing resource area, as this zone is close to proven areas, facilitating gradual expansion and tightening of the geological model.
Following a recent capital raising, Alice Queen expects to have A$6 million to fund exploration, with drilling expected to commence within six weeks. Buxton noted that the logical chain involves the bank having funds, submitting a detailed exploration strategy to the ASX, mobilizing the drill rig, and then focusing on the batch results as they come in. Over the next 12 to 18 months, this cycle is expected to generate a steady stream of news.
Meanwhile, the company is advancing an updated scoping study based on existing resources. A previous study completed in 2021 used a gold price of approximately A$2,400 per ounce, while the updated version is being modeled at around A$6,000 per ounce. Buxton believes the numbers will be very compelling. For a company with a market capitalization of approximately A$20 million, higher gold prices will significantly change the project's economics.
Alice Queen's goals for the next 12 to 24 months include increasing resources to over one million ounces, upgrading inferred resources to higher confidence categories, and continuing drilling to expand scale and define resources. Buxton expects to have over one million ounces of resources within one to two years. The project's development story is progressing in parallel with its exploration story.
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