Medallion Metals (ASX:MM8) has started a 15,000m reverse circulation and diamond drillhole program at its flagship Ravensthorpe Gold Project aimed at growing the “high-grade” sulphide underground resource in both size and confidence.
The objective of the drill program is to also support metallurgical testwork and studies investigating processing Ravensthorpe material at the Cosmic Boy Process Plant located at Forrestania, which is the subject of continuing exclusive negotiations with IGO (ASX:IGO).
As part of the drilling program, Medallion will test several high-priority near-mine and early stage exploration targets within and at the periphery of the Kundip Mining Centre (KMC), which forms part of RGP.
In particular, targeting the projected intersection of the Flag and Harbour View deposits and the emerging “large-scale” 800m x 150m surface copper anomaly at Flanders, which sits within the granted Mining Lease boundary of the proposed RGP development.
Managing Director Paul Bennett says since the announcement of the exclusivity agreement with IGO to provide a near-term processing and production solution for the Ravensthorpe gold and copper ore, Medallion has wasted no time in pushing forward with the key elements required to bring this production opportunity to fruition.
“Infill drilling to de-risk the initial mine plan is now underway and it’s a credit to the Project team to get up and running safely and within this short time frame since committing to the in-fill program,” the MD says.
“The majority of planned holes are permitted and we’ve partnered with a first class outfit in Topdrill, so we’re in the best possible position to execute this program safely and efficiently.
“We are also testing some important extensional targets which could further enhance the value of the project. With drilling now underway, we’re looking forward to reporting the first drill results before the end of the month and the pace of that reporting increasing as the second rig mobilises to site next month.”
In August 2024, Medallion entered exclusive negotiations with IGO to acquire key assets, including the Cosmic Boy Process Plant, at the Forrestania Nickel Operation, along with ongoing discussions to secure non-exclusive gold and silver rights across the broader Forrestania tenure.
A Prefeasibility Study (PFS) completed at the project in October 2023 delivered a “robust gold and copper development scenario”, showing a life of mine (LoM) average annual production of 85,000 ounces of gold and 1,800 tonnes of copper (92,000oz AuEq) and pre-tax cash flow of $85 million per annum over nine years.
Write to Adam Orlando at Mining.com.au
Images: Medallion
