Perth-based mineral exploration company Medallion Metals (ASX:MM8) has begun working on a Prefeasibility Study (PFS) for the Ravensthorpe Gold Project in Western Australia.
The company reports the PFS will assess the technical and commercial viability of the mineral resources contained within the Kundip Mining Centre, and will benefit from the ‘significant’ work already completed for the 2020 feasibility study. This work included geotechnical analysis, metallurgical testwork, surface and ground water studies, and environmental studies.
The PFS will also consider multiple mining and processing options available to ‘maximise’ the value of the project, which now contains a ‘significantly’ expanded Mineral Resource Estimate (MRE) in contrast to the basis of the 2020 study.
Medallion has engaged Snowden Optiro to complete a MRE, and mining service provider Mining Plus to complete the mine design, mine scheduling, and ore reserve estimation.
GR Engineering (ASX:GNG) has also been engaged to complete metallurgy and process engineering, while Resource Engineering Consultants will complete site civil engineering, surface geotechnical, and tailings storage facility design. Medallion has also enlisted Talis to obtain permitting and approvals.
PFS work has begun and is expected to be completed in Q3 2023.
“Since the acquisition of the Ravensthorpe Project back in 2016, it has delivered discoveries, both gold and copper, and grown impressively, just as we had hoped”
Commenting on the PFS, Medallion Metals Non-Executive Director Edmund Ainscough says: “Since the acquisition of the Ravensthorpe Project back in 2016, it has delivered discoveries, both gold and copper, and grown impressively, just as we had hoped. The mineral resource at Kundip is now a substantial asset whilst regionally, we have only just begun to scratch the surface of the rest of the belt.
However, it’s time for me to focus 100% on advancing Lunnon Metals (ASX:LM8), so I wish the Medallion team all the best for the future; I have no doubt they will be successful and generate an excellent outcome for shareholders.”
Since listing in 2001, Medallion has completed 54,000m of new drilling which has resulted in a series of MRE updates. The current MRE for Ravensthorpe stands at 19.5 million tonnes @ 2.1g/t Au and 0.3% copper (Cu) for 1.3 million ounces of gold, and 59,000 tonnes of contained copper metal.
The company estimates 61% of the gold, and 60% of the copper metal is in the indicated category while the remaining metal is in the inferred category. It also notes the overall gold equivalent metal content has increased by 112%, comprising a 93% uplift in gold, and a 238% uplift in contained copper metal since March 2021.
Medallion believes Ravensthorpe represents one of the few ‘genuine’ greenfields gold development opportunities that has both scale, and grade. Additionally, the company says the established mineral resources are hosted within a ‘dominant’ land package across the ‘highly’ prospective Annabelle Volcanics.
During the study period, Medallion reports it will preserve financial resources and focus on de-risking the established MRE so that it is ‘optimally’ positioned to take advantage of any improvement in sentiment in the gold sector.
Further drilling will be deferred until after the completion of the PFS. As a result, Medallion has implemented several cost reduction measures including reducing employee numbers at site, and in the Perth office.
The company acknowledges those individuals who are no longer part of the Medallion team, and thank them for their efforts. Medallion says while regrettable, these measures are necessary given the focus of the company is now on the study work.
The size of the board will also be reduced from 4 to 3 members. Medallion wishes to acknowledge the contribution of Edmund Ainscough, who is retiring as Non-Executive Director today (22 March).
The company says Ainscough was instrumental in identifying and motivating original investment in Ravensthorpe in 2016. He is also a founding Director of Medallion and played a ‘critical’ role in the acquisition and the growth of the business.
Medallion Metals is a Perth-based mineral exploration company focused on its wholly owned projects in the Southern Cross greenstone belt, and the Albany Fraser Orogen in Western Australia. These projects include the Ravensthorpe Gold Project, and the Jerdacuttup Project.
Medallion also holds a 15.1% interest in dedicated nickel sulphide explorer NickelSearch (ASX:NIS).
Images: Medallion Metals Ltd
