Visible Gold in New Holes, But Can the Assays Confirm Scale? | Dreadnought Resources CEO Interview

Antonio (0:00)

This video is sponsored by Terrahutton, who makes the invisible, investible. Today on our CEO BBQ, Goat Exploration and soon, hopefully, production in Western Australia together with Dreadnought Resources. But if you're short on time, subscribe to our free newsletter, and once a week, we'll send you a five-minute summary of all interviews we put out, resourcetalks.com for a free weekly newsletter. Now, although this company has not paid us for the production of this video, you should still understand that we are not financial advisors, and this is not intended as financial advice. It is a broad, general and impersonal piece of information intended only for those who know and understand the risks of junior mining, of which there are many. Before moving on, read the company's official filings on Sitterplus.ca and do your own due diligence. Pause the screen and read all the disclaimers I've shown you because your capital is at risk. If this isn't clear, go to the last section of this video for a longer explanation of the risks and biases and do not consume this content if you don't agree with everything said therein. Moving on, the strategy for Dreadnought is to use a small high-grade gold operation to fund much larger discovery work. And those two things are going to be the focus of the conversation today as well. The flagship development asset here is the Star of Mangeroon Target. It's part of the 100% owned Mangeroon Gold Project in the Gas Coin, which is roughly 250 km southeast of Exmouth. Star's latest dork resource came in at about 27,000 ounces, at just a little over 11 grams per ton of gold. We'll definitely talk about that grade and a bunch of the historic work that's happened and what people have found there. The October 2025 scoping study that they put out contemplated mining about 24,000 of those ounces over about a year. The ASIC there they thought would be about $2,000 Australian, 2020 Australian actually.

Maximum cash drawdown of $5.5 million Australian in operating cash flow after capital and tax of roughly $78.2 million Aussie dollars. That they contemplated at $5,500 gold. Again, that's Aussie dollars.

Scoping study though, so there's no MPV or IRR numbers in there, but we'll definitely talk a little bit about some of the economics.

As of now, they're still finalizing the road use agreements with the relevant shires and the remaining commercial arrangements with Black Cat, which is supposed to fund up to $10 million, part of which we'll of course talk about in the conversation later on, especially because the original timetable has slipped a little here, though the expectation, as far as I understand it, is still to have star mined out by the end of 2027

Away from the pit, the latest disclosed Bangoroon field program has involved detailed mapping, there's some soil and surface sampling, and just general target definition across the larger package, of which Bordah, High Range, and Manga Bar are some of the important targets there that we'll end up touching upon probably in the latter part of the conversation. And that work is meant to generate the next round of our seed drill targets, and so not just add ounces to star, again, the idea is for them to make money on star and then use that money to find a larger discovery.

So we'll definitely talk about that later on in the conversation. The main secondary project being actively advanced is a Lara, if I'm saying that correctly, it's about 190 kilometers north west of Kalgoorlie, where Metzke's find and Metzke's north currently contain about 25,000 ounces, mostly indicated. They've now done about 2,000 meters of RC drilling and 1,300 meters of diamond drilling there, with the diamond assays expected in November, so next month, with the results then feeding metallurgy, hopefully a resource update, and then some mine planning and development studies, while systematic AC, so air core exploration, continues across the wider Greenstone Belt there. They also have some niobium acids, by the way, though, that doesn't seem to be the focus for companies, as far as I could tell right now. They seem to be on pause, but maybe a brief update on them in the latter part of the conversation.

And they even have some PGE, Nickel Copper Projects, or at least one, it's called the Money Intrusion Project. It's being advanced under a tech farm-in, under which tech can spend 15 million Aussie dollars to earn 75% of it. And then there's also Taraji Yampi, and the Kimberley is currently a low priority asset, as Dreadnought works through defense access arrangements, stuff like that. But again, definitely not a focus. We'll only talk about it really if we have the time in the latter part of the conversation. Now for some of the numbers in a bit of the details, Dreadnought is listed as DRE, so like the doctor, who interestingly didn't fear nothing either. So it's DRE, it's D-R-E on the ASX, where the average daily volume of the last three months has been about 3.5 million units. Yes, million, this is Australia, they trade a lot of units. 52-week high is almost 4 cents, and the 52-week low is 1 cent, with a 5.7 billion, and that's yes with a B, so 5.7 billion shares outstanding, and a 57 million with an M, 57 million Aussie dollar market cap. Today, this is a 1 cent stock. Again, this is Australia, so no warrants are outstanding, but there are 18.6 million unlisted options and 79 million performance rates, which sounds like a lot, but again, compared to the 5.8 billion fully diluted shares, that's actually less than 2% of the mix. Last time they raised capital was last year in October, so about a year ago, raising just under 19 million Aussie dollars at 3.5 cents. How much money have they got left right now? How much money are they going to need to put Star into production? Are they going to have to raise before they do that? Are they ever going to have to raise again or put this plan stand on its own? Those are all questions that we'll be asking later on in the conversation. But for this to actually become a conversation though, I will have to shut up already. And Dean, I'll give you the word. Professor, thank you for sitting down with me today.