Ravensthorpe Project Feasibility Study Shows A$443M NPV and 5.7-Year Mine Life

Feasibility Study Overview

Medallion Metals Limited (ASX, MM8) has announced the results of its Feasibility Study (FS) for the Ravensthorpe Gold Project (RGP), focusing on underground mining at the Kundip Mining Centre (KMC) and processing at the Cosmic Boy Concentrator (CBC) in Forrestania, Western Australia. The study confirms the project as a technically robust and commercially compelling gold-copper development, leveraging existing infrastructure to deliver strong financial returns.

The FS outlines a 5.7-year mine life producing approximately 374,000 ounces of gold and 15,000 tonnes of copper, with an average annual production of 77,000 ounces gold equivalent. The project requires a pre-production capital investment of A$138 million and forecasts an all-in sustaining cost (AISC) of A$2,279 per ounce of gold sold, net of by-product credits.

Economic Highlights and Financial Metrics

At a conservative base case gold price of US$3,380 per ounce (approximately A$5,200/oz), the FS projects a post-tax net present value (NPV) of A$443 million and an internal rate of return (IRR) of 87%, with a payback period of just 12 months. Under spot pricing scenarios, these metrics improve significantly, with a post-tax NPV of A$668 million and IRR of 125%, and payback within 10 months.

The project’s revenue is predominantly derived from gold (approximately 90%), with copper contributing around 9% and silver about 1%. Metallurgical recoveries are strong, with gold recovery at 94.3% and copper recovery at 87.1% over the life of mine.

Mining and Processing Plans

The FS envisions underground mining via mechanised longhole open stoping methods across five key lodes at KMC. Ore will be trucked 176 km by public roads to the CBC for processing. The CBC will undergo modifications, including installation of additional grinding capacity and a new carbon-in-leach circuit, to process 650,000 tonnes per annum of ore.

The processing flowsheet combines crushing, grinding, flotation, and cyanide leaching to recover gold, copper, and silver into saleable concentrate and doré products. Tailings will be managed within the existing approved tailings storage facility, with planned lifts to accommodate production.

Environmental and Regulatory Status

The project is located in an environmentally sensitive area with several threatened ecological communities and species. Medallion has advanced key environmental approvals, including amendments to existing ministerial statements and submissions under the Commonwealth Environment Protection and Biodiversity Conservation Act. The company has secured biodiversity offsets and expects to receive all necessary statutory approvals in due course.

Next Steps and Growth Opportunities

Medallion is progressing towards completion of its acquisition of the Forrestania assets from IGO Limited, a key condition precedent to project development. The company has secured a US$50 million prepayment facility from Trafigura to assist funding and has commenced ordering long-lead items and front-end engineering design.

Growth opportunities include a planned 15,000-metre drilling program starting January 2026 aimed at resource conversion and extension, potential processing of oxide and transitional mineral resources, and exploration within the broader Forrestania tenure. The nearby Trilogy polymetallic deposit also presents potential for future processing at CBC.

Overall, the FS confirms a low capital intensity, near-term gold-copper development opportunity in a proven Western Australian mining district, with multiple organic and inorganic pathways to extend mine life and scale production.