Dreadnought Resources Eyes Gold Production

Dreadnought Resources Ltd (ASX:DRE) is embarking on an aggressive strategy to develop its gold assets, particularly the Mangaroon Gold Project in Western Australia. The company announced a capital raising of up to A$10 million via a placement and share purchase plan (SPP), with funds earmarked for advancing Mangaroon and Illaara drilling programs. The Mangaroon project, located in the Gascoyne Region, boasts a large tenement package with over 200km of major geological structures. A maiden resource at the Star of Mangaroon prospect stands at 23,300oz @ 12.8g/t Au, with a robust open-pit scoping study projecting ~A$50M in free cash flow at A$4,600/oz and an AISC of ~A$1,800/oz. DRE aims to bring Star of Mangaroon into production, outsourcing funding, development, haulage, and processing. Black Cat Syndicate has already invested $2M, securing the first right to negotiate gold development for processing at Paulsens. The Illaara Gold Project, located in the Yilgarn Region, is another key focus. It hosts the high-grade Metzke’s Find deposit and boasts significant exploration potential. The company intends to conduct drilling at Metzke’s, Lawrences, SW BIF Horizon, and Black Oak – Homestead, and new targets, including aircore. The overarching strategy includes adding mineable ounces on granted mining leases to extend production, deliver gold discoveries from walk-up targets, and generate and define targets for discovery. The company faces risks typical of resource exploration and development, including gold price fluctuations, securing land access, and obtaining necessary permits. The capital raising is priced at A$0.012 per share, a 20.0% discount to the last trade price. Petra Capital Pty Limited is the Sole Lead Manager and Sole Bookrunner for the placement.