Why Redstone Resources (ASX:RDS) is lining up first fieldwork on newly acquired WA gold and critical minerals projects

Sonal Goyal

12 November 2026 02:07 PM AEDT

Why Redstone Resources (ASX:RDS) is lining up first fieldwork on newly acquired WA gold and critical minerals projects

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

No substantive on-ground exploration was carried out in the quarter, with reconnaissance sampling planned for the December 2026 and March 2027 quarters.
The newly acquired portfolio includes Rudall East, Cockatoo Rocks, Mt Cauden and Twin Hills, with approved work programmes at Mt Cauden and Twin Hills.
Cash was A$391,000 at 30 September, down from A$557,000, with an estimated 2.5 quarters of funding.
A 3,300-metre RC programme at West Musgrave is scheduled for the March 2027 quarter, supported by a grant of up to A$230,000.

Redstone Resources (ASX:RDS) is a Perth-based explorer best known for its West Musgrave copper project in Western Australia. In June 2026 it agreed to acquire a portfolio of greenfields gold, lithium, copper and base metals projects elsewhere in WA, and its September quarter report, released on 30 October 2026, is mostly about planning the first work on those projects.

No substantive on-ground exploration was carried out in the quarter, the company says. Its plans point to reconnaissance sampling in the December 2026 and March 2027 quarters and a co-funded drilling programme at West Musgrave in the March 2027 quarter, all subject to approvals and funding.

The new WA projects

The acquired portfolio, announced on 18 June 2026, includes Rudall East in the East Pilbara, a 58 km² granted area the company considers prospective for Mt Isa-style copper, lead, zinc and gold; Cockatoo Rocks, a lithium pegmatite target about 100 km north-east of Kalgoorlie; Mt Cauden near Southern Cross for gold and lithium; and Twin Hills near Menzies for gold.

Programme of Work approvals are already in place at Mt Cauden and Twin Hills, and the company says both have drill-ready targets. Preliminary reconnaissance was completed at Mt Cauden during the quarter. The geological comparisons with major deposits nearby are the company's interpretation; none of the new projects has a reported resource.

The AGM notice seeks ratification of 75 million vendor shares issued for the acquisition, indicating at least part of the consideration was paid in scrip. Against about 1.3 billion shares on issue, that issue is modest in percentage terms.

West Musgrave and Saturn

At West Musgrave, home to the Tollu copper deposit, Redstone plans a 3,300-metre reverse circulation programme over magnetic targets north-east of Tollu. It is now scheduled for the March 2027 quarter once approvals, weather and traditional owner Business allow, and is supported by a WA Government Exploration Incentive Scheme grant of up to A$230,000. The nearby Saturn project, covering 330 km² in the Giles Intrusive Complex, remains at the stage of evaluating first-pass ground activities and native title requirements. Redstone also holds a 50% interest in a lithium joint venture with Galan Lithium in James Bay, Quebec.

Cash and funding

According to the Appendix 5B for the quarter ended 30 September 2026, Redstone held A$391,000 in cash, down from A$557,000. Net operating outflows were A$92,000 and exploration spending was A$65,000. The company estimated 2.5 quarters of funding.

The FY2026 annual report, released on 27 October 2026, records a net loss of about A$588,000 and net Assets of about A$9.8 million, mostly capitalised exploration. It states there is a material uncertainty over Going Concern that depends on future Capital raisings, and notes that director-related creditors owed about A$274,000 at 30 June 2026 have agreed to defer payment until funding is available.

AGM and risks

The Annual General Meeting is scheduled for 1pm WST on Monday 30 November 2026 in West Perth. Resolutions include two director re-elections, the remuneration report, the vendor share ratification, a 10% Placement capacity, and Options for three directors and for consultants or employees.

The main risk is funding: cash covers about 2.5 quarters at the September quarter rate, before any step-up in fieldwork or drilling, which suggests further raisings and dilution are likely. Other risks include heritage and native title processes in remote areas, weather-dependent access in the Musgraves, and the early, untested nature of the new projects.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.