Golden eye on northern island after spot price surge
Rising gold prices could bring back mining in the Torres Strait, with exploration firm Alice Queen taking a fresh look at its feasibility.
The company valued the gold deposits on Horn Island in 2021 at $140 million, based on the yellow metal’s price of $2450 per ounce.
With the spot price of gold above $6000 per ounce, Alice Queen is reconsidering with an updated run in the first half of 2026.
Managing director Andrew Buxton said the project was an “interesting opportunity”.
“The Company continues to examine partnership opportunities, but is also advancing a review of the economics of the 2021 Scoping Study in conjunction with exploring direct funding opportunities,” Alice Queen said in a statement to the ASX.
“With the current significant increase in the gold price, the underlying value of the project is expected to increase significantly.”
The 2021 survey included an average annual gold production rate of 37,000 ounces and a mine life of 8.5 years.
It also proposed initial capital expenditure of $75 million, with “all sustainable costs” of $1388 per ounce.
Alice Queen will also review the mineral resource estimate with mining consultant RSC, while GBA Capital will act as strategic advisor for the project.
Horn Island, home to fewer than 1,000 people, is among the cluster of islands that form the Torres Strait between Queensland and Papua New Guinea.
While European settlers first mined gold on Horn Island in the late 19th century, an attempt to begin open-pit mining in the 1980s took two years and required environmental remediation.
The announcement did not move the dial on Alice Queen’s trading price, which remained at $0.005 on Wednesday.
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