Medallion Metals has reported significant extensional drilling results at its Gem deposit, pushing high-grade gold-copper-silver mineralisation up to 80 metres beyond current resource boundaries and reinforcing plans for near-term sulphide development.
- Extensional drilling at Gem deposit extends mineralisation up to 80 metres beyond current Mineral Resource Estimate
- High-grade intercepts include 6m @ 4.6g/t Au, 1.0% Cu, 9.1g/t Ag and 3m @ 6.8g/t Au, 0.6% Cu
- Results support potential mine life extension and resource growth at Kundip Mining Centre
- Feasibility Study underway targeting December 2025 completion to inform Final Investment Decision
- Exclusive negotiations ongoing to acquire Forrestania Nickel Operation and Cosmic Boy Process Plant from IGO Ltd
Significant Extensions at Gem Deposit
Medallion Metals Limited (ASX:MM8) has announced promising results from extensional drilling at its flagship Gem deposit within the Kundip Mining Centre (KMC), part of the Ravensthorpe Gold Project in Western Australia. Two Reverse Circulation (RC) drill holes intersected high-grade gold, copper, and silver mineralisation up to 80 metres beyond the current Mineral Resource Estimate (MRE) boundary, with assays including 6 metres at 4.6 g/t gold, 1.0% copper, and 9.1 g/t silver, and 3 metres at 6.8 g/t gold and 0.6% copper.
These intersections lie approximately 60 metres below the current mine plan limits and 40 to 80 metres beyond the inferred resource boundary, highlighting substantial upside potential for resource growth and mine life extension at KMC. The mineralisation is characterised by quartz-sulphide veins containing chalcopyrite and pyrite, consistent with previous drilling observations.
Implications for Resource and Development Strategy
The new drilling results will feed into an updated Mineral Resource Estimate for the Gem deposit, expected by June 2025, which will underpin a Feasibility Study (FS) scheduled for completion in the December quarter of 2025. This FS will assess the technical and commercial viability of mining the sulphide resources and processing them at the Cosmic Boy Process Plant, subject to the successful acquisition of the Forrestania Nickel Operation from IGO Ltd.
Medallion’s Managing Director, Paul Bennett, emphasised the importance of these results for extending mine life and enhancing project economics. He noted that the company is "just scratching the surface" of the mineralised system, with ongoing drilling expected to delineate further lode extensions and new sulphide occurrences at depth.
Strategic Acquisition and Processing Plans
Medallion is in exclusive negotiations with IGO Ltd to acquire the Forrestania Nickel Operation, including the Cosmic Boy Process Plant, which is well-suited for treating the Ravensthorpe Gold Project’s sulphide mineral resources. The exclusivity period has been extended to August 2025 to allow for negotiation and documentation. This acquisition is a critical component of Medallion’s sulphide development strategy, enabling near-term processing of high-grade sulphide ores.
Parallel workstreams are advancing, including upgrading resource classifications, metallurgical and geotechnical testwork, environmental permitting, and progressing the acquisition. These efforts aim to accelerate the Final Investment Decision and project development timeline.
Looking Ahead
With approximately 15,000 metres of a planned 17,000-metre drill program completed at KMC, Medallion is rapidly building confidence in the size and quality of its sulphide resources. The updated resource models and feasibility outcomes will be pivotal in shaping the company’s next steps and investment appeal.
While some assay results from recent diamond drilling remain pending, and the acquisition is not yet binding, the current data and strategic moves position Medallion Metals as a compelling player in the Western Australian gold and base metals sector.
Bottom Line?
Medallion’s drilling success and strategic acquisition talks set the stage for a potentially transformative sulphide development phase.
Questions in the middle?
- Will the Forrestania acquisition close on favourable terms and within the extended exclusivity period?
- How will the updated Mineral Resource Estimate impact the overall project valuation and mine life?
- What are the metallurgical and processing challenges anticipated with the sulphide ores at Cosmic Boy?