Forrestania Commits $5M to Lake Johnston Crushing Circuit Upgrade
Forrestania Resources has contracted Polaris Engineering to refurbish the critical crushing circuit at its Lake Johnston facility, marking a pivotal step towards gold production. The $5 million deal, payable in company shares, aligns with Forrestania’s strategic shift from developer to producer.
- Forrestania engages Polaris Engineering for crushing circuit refurbishment
- Contract valued at approximately $5 million, payable in scrip
- Refurbishment expected to take 25 weeks to complete
- Key step in transitioning Lake Johnston into a gold production hub
- Project leverages existing infrastructure for cost-effective development
Strategic Upgrade at Lake Johnston
Forrestania Resources Limited (ASX: FRS) has taken a decisive step in its evolution from gold developer to producer by awarding a $5 million contract to Polaris Engineering Services. The contract covers the refurbishment of the existing three-stage crushing circuit at the company’s wholly owned Lake Johnston processing facility in Western Australia.
This refurbishment includes overhauling major equipment, piping, cabling, and instrumentation, with a targeted delivery timeline of approximately 25 weeks. The move is designed to optimise the existing plant layout and infrastructure, allowing Forrestania to accelerate its operational readiness without the need for extensive new construction.
Payment Structure and Strategic Implications
Notably, the contract will be paid in Forrestania scrip, using a staged monthly payment structure based on a five-day volume weighted average price. This approach preserves the company’s cash reserves, enabling parallel investment in other development packages critical to converting Lake Johnston into a fully operational gold production hub.
Chairman David Geraghty emphasised the importance of this refurbishment as a foundational step, stating that it aligns with Forrestania’s broader development plans and underpins the company’s transition to gold production. The engagement of Polaris Engineering, with its relevant expertise, is expected to ensure a smooth and timely delivery.
Broader Development Context
Lake Johnston is central to Forrestania’s strategy, representing the initial phase of its production ambitions. The company’s portfolio spans several promising gold districts across Western Australia, including Southern Cross, Eastern Goldfields, and Forrestania itself. The refurbishment of the crushing circuit is a critical infrastructure upgrade that will enable Forrestania to better utilise existing site facilities and accommodation, delivering the project in a cost-effective and methodical manner.
Polaris Engineering’s Managing Director Shannon Melvin expressed enthusiasm about the partnership and the opportunity to support Forrestania’s journey towards gold production, highlighting a shared commitment to long-term value creation.
Looking Ahead
While the refurbishment contract marks a significant milestone, details on the subsequent ramp-up to production remain forthcoming. Forrestania continues to advance resource development, mine planning, and operational readiness in parallel, signalling a disciplined and multi-faceted approach to realising its production goals.
Bottom Line?
Forrestania’s investment in crushing circuit refurbishment signals a tangible step towards gold production, but the timeline to full-scale output remains a key watchpoint.
Questions in the middle?
- What is the expected timeline from refurbishment completion to first gold production?
- How will the scrip payment impact Forrestania’s share structure and dilution?
- What are the next critical infrastructure packages planned following the crushing circuit upgrade?
