TG Metals (ASX:TG6) has executed a non-binding ore processing and profit share agreement with Medallion Metals (ASX:MM8), to process approximately 60,000 tonnes of gold-bearing stockpiles from its Van Uden Gold Project.
Medallion will handle transportation and processing of the stockpiles through its Cosmic Boy Concentrator, located 70km south of Van Uden. TG Metals retains responsibility for applicable royalties and statutory approvals.
The material will be processed in campaigns through the concentrator.
Medallion Metals will first recover the agreed operating costs from processing revenues, with the remaining pre-tax operating profit shared equally between the two companies.
Provisional payments will be made following each processing batch, with final reconciliation based on actual operating costs, metallurgical performance, and gold sales proceeds.
“This is a significant first ore processing outcome for TG Metals. We look forward to working with Medallion to realise first stockpile feed into the Cosmic Boy plant,” CEO David Selfe says.
“The agreement, once advanced to binding, will provide a revenue stream to the company whilst we continue with further treatment options both onsite via heap leach and offsite.”
The company reported the stockpiles in August and October 2025, with composite grades ranging from 0.70 grams per tonne to 0.95g/t gold (Au). The current mineral resource estimate does not include the material for Van Uden.
Approvals to remove stockpiles from Van Uden are already in place, allowing operations to commence once the companies finalise the agreement. Existing haul roads connect the projects via the public Forrestania-Marvel Loch Road.
Van Uden contains a JORC resource of 270,800 ounces at 1.06g/t Au across 7.9 million tonnes, with 56% indicated. TG Metals is nearing completion of a laterite heap leach study aimed at providing onsite treatment of gold-bearing laterite material.
Expansion drilling for additional laterite resources will commence in the third quarter of 2026, following successful auger drilling reported in July.
TG Metals is a Western Australian gold and lithium explorer advancing the Van Uden Gold Project and the Lake Johnston Lithium Project.
Write to JC Villarba at Mining.com.au
Images: TG Metals
