Medallion Metals (ASX:MM8) has received further drilling results from the Harbour View deposit, part of its Ravensthorpe Gold Project in Western Australia, which will inform an updated resource estimate as the company moves towards a final investment decision (FID).
Medallion, which has a market capitalisation of $36.31 million, is advancing several work streams to support a FID, which will include the establishment of an underground mining operation at Ravensthorpe.
The company is currently engaged in a 15,000m drilling program designed to grow the underground sulphide resource at the Kundip Mining Centre, which sits within Ravensthorpe and hosts the Harbour View deposit.
A reverse circulation drill rig has completed 10,000m of reverse circulation drilling and is now de-mobilised from the site. As part of that drilling program, two holes targeted Harbour View’s main lode which confirmed the continuity of structure and robust grades at depth.
Some of the latest assay results include 7m @ 6 grams per tonne (g/t) gold, 0.3% copper, 2.3g/t silver, and 2m @ 8.7g/t gold, 0.9% copper, and 3.5g/t silver.
The drilling program also aims to support metallurgical testwork and test several high-priority near mine and regional exploration targets. A diamond drill rig has arrived at site and will begin drilling in the coming days.
Managing Director Paul Bennett says the main lode intercepts confirmed the continuity of the structure.
“It’s pleasing we continue to tag the structure in the modelled position which bodes well for when the time comes to mine the deposit,” Bennett says.
“Also of real interest is what is observed in the hanging wall with the reverse circulation pre-collars returning a group of significant hits. Stopes haven’t previously optimised in this area and the additional data from the pre-collars may provide upside to future reserve estimates.”
The company expects to complete the drilling program in 2025, which will be followed by an updated mineral resource estimate in the first half of next year.
Meanwhile, a referral under the Environment Protection and Biodiversity Conservation Act has been lodged and Medallion says it will be critical for establishing the timeline of delivering a final investment decision.
Further, the company is seeking legislative approvals to allow mining to begin at the Ravensthorpe Gold Project and ore haulage to Forrestania, which includes the Cosmic Boy processing plant and associated infrastructure.
In August 2024, the company entered into an exclusivity agreement with IGO (ASX:IGO) which permits Medallion to negotiate the acquisition of certain assets of the Forrestania Nickel Operation.
Under the agreement, Medallion will pay IGO up to $15 million cash. The total cash and liability assumption consideration is to be not over $50 million.
IGO is a resources company focused on lithium and nickel. The company owns and operates the Nova Nickel Operation, which is an underground nickel mining and processing facility in Western Australia.
Medallion Metals is an advanced explorer focused primarily on gold and copper in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Medallion Metals
