Medallion Metals (ASX:MM8) anticipates releasing an updated underground mineral resource estimate in the first half of 2025 for Ravensthorpe-Forrestania in Western Australia.
The MRE update will support final investment decision (FID) on the near-term Ravensthorpe-Forrestania sulphide development strategy, as the company progresses through to a Bankable Feasibility Study (BFS).
The completion of a BFS in combination with the availability of development finance and a range of other factors will inform the company’s assessment of a project FID.
Medallion, in conjunction with its contractors, has completed some 7,500m of drilling and anticipates having completed about 15,000m of drilling early in calendar year 2025.
The company expects the results of the drilling will grow the underground MRE in terms of size and confidence.
Medallion notes that exclusive negotiations to acquire Forrestania from IGO (ASX:IGO) continue to advance. During August 2024, Medallion entered into an exclusivity agreement with IGO to acquire mineral tenure and infrastructure associated with the Cosmic Boy processing plant, as part of the Forrestania Nickel Operation. The total cash and liability assumption consideration is to not exceed $50 million.
Medallion, which has a market capitalisation of $32.63 million, is advancing several workstreams to minimise the timeframe to reach a FID for the project.
This work includes converting the inferred resource to an indicated category, conducting ongoing testwork to support a BFS level assessment, progress environmental permitting and completing a proposed transaction and acquisition of the Cosmic Boy processing plant and associated infrastructure.
Medallion is progressing environmental permitting with focus on primary approvals at state and federal levels. The company is seeking primary legislative approvals which would allow mining to start and ore haulage to Forrestania for processing.
Medallion also aims to complete the proposed transaction and acquisition of the Cosmic Boy Processing Plant and associated infrastructure.
Meanwhile, the company has also lodged a referral under the Environment Protection and Biodiversity Conservation Act. If the project were to require assessment, Medallion notes this will be critical for establishing the timeline for project FID.
This news comes after Medallion conducted an infill drilling program which has confirmed continuity of “high-grade” lodes within the Kundip Mining Centre, which is part of Ravensthorpe.
Managing Director Paul Bennett says the drilling results show the potential of Kundip.
“Not only are we confirming the grade and continuity of the deposit which is the principal aim of the infill program, but we are also likely increasing the resource and demonstrating the potential upside from high-grade hits outside the modelled lodes,” Bennett says.
“The lodes are visible in the chips and core and we expect a lot more good news to flow from this program which has just started reporting results.”
Medallion is continuing to advance the 15,000m drilling program to grow the sulphide underground resource at Kundip. A reverse circulation drill rig was mobilised to Ravensthorpe in early October and a diamond drill rig is expected to arrive at site to begin drilling early next month.
The company anticipates drilling to be completed early next calendar year.
Medallion Metals is a gold and copper-focused explorer with assets in Western Australia. The company’s flagship Ravensthorpe Project is located 550km southeast of Perth in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Medallion Metals
