Alice Queen (ASX:AQX) is assessing various financing preferences to fund development of its Horn Island Gold Project including a broad brush plan of targeting a typical blended project finance package of 60% debt and 40% equity.
The company has appointed GBA Capital as financial advisor for the development and financing of the project including to evaluate funding options and implement the most value accretive funding package for the project.
Speaking to Mining.com.au, Managing Director Andrew Buxton says one of the potential debt funding partners for Horn Island is Northern Australia Infrastructure Facility (NAIF).
“We see NAIF as a natural partner for the project given, it is located in Australia’s northern most outpost, the location is increasingly geopolitically sensitive, it has significant equity (7.5% free carried) held by the TOs (traditional owners Kaurareg People of Kaiwalagal) and it will transform economic development and employment in an area where other industry is scarce and unemployment is very high,” Buxton tells this news service.
In parallel, Alice Queen is “always listening to the market”, meeting with potential investors and speaking with prospective partners on all of its projects, not just on Horn Island.
In this case, however, Buxton notes the company is of the strong view that, with the help and guidance of GBA Capital, it can bring Horn Island into production without any additional outside joint venture type arrangements.
New scope sounds for Horn Island
Meanwhile, Alice Queen is on track to deliver an updated Scoping Study for its Horn Island Gold Project in Queensland during Q1 2026, the Managing Director says.
As Buxton explains to Mining.com.au, the company is then targeting a direct run straight through to a Bankable (BFS) and then Definitive Feasibility Study, with no need for an interim Prefeasibility Study.
Alice Queen is targeting one year for the BFS to be completed. A detailed cost, activities, timing BFS plan is currently being prepared by GR Engineering.
Buxton adds that key upcoming news items for potential near term re-rate of the company’s share price include a GBA Capital investor and analyst site visit to Horn Island in December 2025; an updated MRE to be announced January 2026; and the updated Scoping Study expected in February-March 2026.
“Alice Queen has begun the process to update the 2021 Scoping Study for the Horn Island Gold Project in Queensland, based on the latest gold price and other key assumptions, operating costs, and capital expenditure,” Buxton tells this news service.
“Horn Island’s previous study outlined a net present value of $140 million and internal rate of return of 44.3%, based on a gold price of $2,450 per ounce. Horn Island has a 8.5 year mine life, with an initial capital expenditure of $75 million and all-in sustaining costs of $1,388 per ounce.”
The update of the study is aiming to capture two key activities going on concurrently.
“An update on the previously published mineral resource estimate (MRE) is already well underway with leading firm RSC,” the Managing Director adds.
“We expect that the new MRE will show more ounces in the ground (given the significantly greater gold price) and we are aiming for a far more constrained model which should result in a better grade. The updated MRE should be available for release to ASX early in the New Year (2026).
“Leading firm GR Engineering (the author of the 2021 Scoping Study) has been briefed on the job of updating the previous Scoping Study with the recent gold price and also objectively benchmarking and including in the model, the increases in mining, processing and capex costs over the same period.
“A recent article published by analyst Sam Berridge explained how the average margin and NPV of a gold mine over a similar period from 2021 to today, has shot up by 400%.
“…our back of the envelope numbers indicate the NPV should come out in the updated Scoping Study at somewhere around $500 million”
“Sam’s analysis accords nicely with our own internal numbers for Horn Island. That is, NPV in the 2021 Scoping Study was $140 million, and now our back of the envelope numbers indicate the NPV should come out in the updated Scoping Study at somewhere around $500 million.”
Alice Queen has begun the process to update the 2021 Scoping Study based on the latest gold price and other key assumptions, operating costs, and capital expenditure, as reported.
Due to the recent substantial increase in gold price (from $2,450/oz used in the 2021 study to the current approximate $6,000oz, representing a 150% rise), the company has continued to assess its strategy in respect of the Horn Island.
The Horn Island Gold Project is an intrusive-related gold system located in the Torres Strait, Far North Queensland.
Write to Adam Orlando at Mining.com.au
Images: Alice Queen
