Medallion’s Ravensthorpe Expansion Hinges on Approvals and Financing for Final Investment Decision
Medallion Metals has significantly expanded its sulphide Mineral Resource Estimate at the Ravensthorpe Gold Project to 950,000 ounces gold equivalent, underpinning a rapid move toward production with a feasibility study due in October and a Final Investment Decision expected by year-end.
- Sulphide Mineral Resource increased to 950koz AuEq at 5.2g/t
- Gold grade improved to 4.6g/t with stable copper content
- 58% of gold and 63% of copper classified as Indicated
- Feasibility Study based on updated resource targets October completion
- Strategic acquisition of Forrestania processing infrastructure from IGO Ltd
Resource Growth and Quality
Medallion Metals Limited (ASX, MM8) has announced a substantial increase in the sulphide Mineral Resource Estimate (MRE) at its flagship Ravensthorpe Gold Project (RGP) in Western Australia. The updated MRE now stands at 950,000 ounces gold equivalent (AuEq) grading 5.2 grams per tonne (g/t), comprising 840,000 ounces of gold at 4.6 g/t and 37,000 tonnes of copper at 0.6%. This marks a notable improvement from the January 2023 estimate, which reported a gold grade of 4.3 g/t.
The resource upgrade is underpinned by approximately 15.5 kilometres of predominantly infill drilling focused on the Kundip Mining Centre (KMC) deposits, including Gem and Harbour View. This drilling has enhanced confidence in the continuity and grade of the mineralisation, with 58% of gold and 63% of copper now classified in the Indicated category, providing a robust foundation for mine planning over the first four to five years of production.
Strategic Development and Processing Plans
Medallion is advancing a Sulphide Development Strategy that leverages the recent acquisition of the Forrestania Nickel Operation (FNO) from IGO Ltd. This transaction, now binding, includes mineral tenure and established processing infrastructure, enabling Medallion to process RGP sulphide material efficiently. The company anticipates high conversion rates from the updated MRE to the mine plan, with the Feasibility Study (FS) targeted for completion in October 2025 and a Final Investment Decision (FID) expected by December.
The FS will incorporate the updated resource model and metallurgical recovery data, which are expected to confirm the viability of a gravity-flotation-leach processing route to maximise recovery of gold, copper, and silver to saleable products. Modifications to the Cosmic Boy flotation plant at FNO are underway, including orders for long-lead items such as a secondary ball mill.
Exploration Upside and Environmental Progress
The deposit remains open at depth and along strike, with drilling set to resume in the fourth quarter to target extensions of known lodes and new mineralised zones. Notably, recent drilling intersected previously unknown lodes with high-grade mineralisation, indicating potential for further resource growth.
On the regulatory front, Medallion has submitted additional information to the Department of Climate Change, Energy, the Environment and Water (DCCEEW) for the Environmental Protection and Biodiversity Conservation Act (EPBC) assessment, which is now in the public comment phase. Concurrently, amendments to the Western Australian Ministerial Statement 1143 are progressing to support project commencement conditions.
Commercial and Financial Outlook
Negotiations with potential offtake and financing partners are ongoing, with the company aiming to appoint preferred partners on an exclusive basis ahead of the FID. Medallion is also expanding its senior management team in preparation for operational control of the FNO assets.
Overall, the enhanced sulphide resource, combined with strategic infrastructure acquisition and advancing feasibility and environmental approvals, positions Medallion Metals for a rapid transition to production at Ravensthorpe, potentially delivering significant value to shareholders.
Bottom Line?
With a strengthened resource base and critical infrastructure in hand, Medallion Metals is poised for a decisive step toward production, though key approvals and financing remain pivotal.
Questions in the middle?
- How will metallurgical recovery results impact the final mine plan and economics?
- What are the timelines and risks associated with environmental approvals under EPBC and WA legislation?
- Which offtake and financing partners will Medallion secure ahead of the Final Investment Decision?