Medallion Metals (ASX:MM8) is set to commence a 15,000m Reverse Circulation (RC) and Diamond Drill Hole (DDH) drill programme at the Company’s flagship Ravensthorpe Gold Project in WA in the coming weeks.
The objective of the drill programme is to grow the high-grade sulphide underground resource in both size and confidence as well as support metallurgical testwork and studies assessing processing Ravensthorpe material at the Cosmic Boy Process Plant located at Forrestania, which is the subject of continuing exclusive negotiations with IGO Limited (IGO).
Additionally, Medallion will test several high priority near mine and regional exploration targets within and at the periphery of the Kundip Mining Centre (KMC) which forms part of RGP.
“It’s great to be on the ground again with drills soon to be turning at Ravensthorpe. The team has done an excellent job having permits in place and all the logistical elements finalised in a short space of time, so we’re well placed to get this program done safely and efficiently," Managing Director, Paul Bennett, said.
"News will flow quickly with the first results expected to be reported early in the fourth calendar quarter and the pace of reporting accelerating as the second rig mobilises. We also welcome Topdrill to the Ravensthorpe Gold Project for the first time and we are looking forward to working with them to test these exciting targets.”
Medallion has entered into an Exclusivity Agreement with IGO that grants Medallion a period of exclusivity in which to negotiate a proposed acquisition of certain assets of the Forrestania Nickel Operation (FNO), including the Cosmic Boy Process Plant, following completion of nickel production by IGO at FNO.
The exclusivity period is nine months, with the ability to extend for up to a further three months.
The RGP Mineral Resource, when reported in fresh rock and above a lower cut-off grade (COG) of 2g/t AuEq, yields 5.6Mt @ 4.3g/t Au and 0.6% Cu1 (772koz Au and 36kt Cu contained) and is considered available for potential underground mining. With modification parameters from the October 2023 PFS2 applied, Medallion believes a substantial underground mine plan will coalesce with grades that will sustain trucking to Cosmic Boy, which is approximately 160km from RGP by a predominantly sealed road.
In addition to RGP, multiple strategic growth opportunities present themselves through the establishment of gold processing capability at FNO.
The Forrestania greenstone belt is a historically significant gold producing region, which includes the Bounty Gold Mine (historical production approximately 1.4Moz at 5.1 g/t gold) and remains highly prospective for gold with multiple deposits and prospects situated within economic trucking distance of Cosmic Boy.
Ongoing work streams include infill drilling, test work and further studies considering the development of the RGP, continued due diligence and advancing legally binding transaction documentation with IGO. Studies will include the assessment of various development opportunities for RGP, specifically standalone processing at RGP versus trucking the high-grade sulphide Mineral Resources to Cosmic Boy.