Medallion Metals (ASX:MM8) is building further confidence that the mine life can be increased at the Ravensthorpe Gold Project, after receiving drilling results from the Gem deposit in Western Australia.
As part of the ongoing 17,000m drilling program, two reverse circulation drillholes returned results that extend the lode position up to 80m from the current mineral resource boundary.
As such, the company says the mine life can potentially be increased by extensions to the known lodes as well as through delineating new lodes at depth via ongoing drilling.
Some of the results include 6m @ 4.6 grams per tonne gold, 1% copper, 9.1g/t silver, including 2m @ 11.2g/t gold, 2.4% copper and 19.5g/t silver.
Medallion, which has a market capitalisation of $112.5 million, says the results illustrate upside potential to current resources at the Kundip Mining Centre and by extension, the production inventory that is the basis of the 2024 Scoping Study.
Managing Director Paul Bennett says the results have important implications for the project as the business looks toward near-term development.
“Post economics are significantly levered to mine life extensions and these results demonstrate that above cut-off grade mineralisation at mineable widths extends up to 60m down plunge from the current limits of the mine plan,” Bennett says.
“We maintain we are just scratching the surface of this significant mineralised system.”
The current drilling program aims to grow the sulphide underground resource at the Kundip Mining Centre in terms of size and confidence. The results are expected to inform an updated resource, which in turn will form the basis of a Feasibility Study.
The Feasibility Study will assess the technical and commercial viability of mining Ravensthorpe’s mineral resources and treating them at a modified Cosmic Boy process plant. The study is anticipated to be completed in Q4 2025.
In conjunction, an updated resource for the Gem deposit will also be completed in June, followed by a resource update for the Harbour View deposit in July.
Earlier last year, Medallion entered into an exclusivity deal with IGO (ASX:IGO) that grants the company to negotiate the acquisition of the Forrestania Nickel Operation. Forrestania includes the Cosmic Boy process plant and associated infrastructure.
Medallion Metals is focused on advancing exploration for primarily gold and copper in Western Australia via its portfolio of assets. The company’s projects include the Ravensthrope and Jerdacuttup projects.
The company is attending the RIU Sydney Resources Round-up being held from 6-8 May. Mining.com.au is an official media partner at this year’s event.
Write to Aaliyah Rogan at Mining.com.au
Images: Medallion Metals
