Lake Johnston CIL Plant Contract Worth Up to A$58.5M with November 2026 Target
Forrestania Resources has inked a binding agreement with Polaris Engineering to construct a new carbon-in-leach plant at Lake Johnston, aiming for commissioning by November 2026 and a throughput of 3.2 million tonnes per annum.
- Binding agreement with Polaris Engineering for Lake Johnston CIL plant
- Contract value up to A$58.5 million with flexible payment options
- CIL commissioning scheduled for November 2026
- Expected throughput capacity of 3.2 Mtpa at Lake Johnston
- Strategic step towards Forrestania’s gold production ambitions
A Major Step Forward for Lake Johnston
Forrestania Resources Limited (ASX:FRS) has taken a significant stride in advancing its Lake Johnston gold project by entering into a binding agreement with Polaris Engineering Services. This deal, valued at up to A$58.5 million, covers the construction of a new carbon-in-leach (CIL) processing circuit and a broader refurbishment of the existing plant infrastructure. The move is a clear signal of Forrestania’s commitment to transitioning from exploration to production.
The agreement follows earlier announcements about refurbishing the crushing circuit and now expands the scope to include a critical processing upgrade. The new CIL circuit is expected to boost the facility’s throughput to approximately 3.2 million tonnes per annum, positioning Lake Johnston as a competitive processing hub in Western Australia’s goldfields.
Innovative Payment Structure and Timeline
Forrestania has structured payments to Polaris primarily through the issuance of company shares at a 12% premium to the volume weighted average price (VWAP), with the option to substitute cash payments at its discretion. This approach reflects a capital-efficient strategy, balancing cash flow management with shareholder dilution considerations.
Commissioning of the CIL plant is targeted for November 2026, aligning with Forrestania’s staged development plan. The company’s executive chairman, David Geraghty, emphasised the strategic importance of this phased approach, highlighting the long-life potential of the plant to support both Forrestania’s own resources and third-party ore sources.
Partnerships and Regional Growth
The agreement also involves Mincore, a leading design partner, underscoring the technical expertise backing the project. Polaris’s managing director, Shannon Melvin, expressed enthusiasm about contributing to what could become a significant new gold producer in the region.
Forrestania’s broader portfolio spans several promising gold districts in Western Australia, including Southern Cross, Eastern Goldfields, and Forrestania itself. The Lake Johnston project, acquired late in 2025, is central to the company’s production ambitions and growth strategy.
Looking Ahead
While the final contract execution is pending, the announcement clarifies the binding nature of the agreement and corrects earlier references to a heads of agreement. Investors should note the forward-looking nature of the project timeline and the typical risks associated with mining development, including market conditions and operational challenges.
Overall, this development marks a pivotal moment for Forrestania Resources as it assembles the infrastructure necessary to become a meaningful gold producer in Western Australia’s competitive mining landscape.
Bottom Line?
Forrestania’s Lake Johnston upgrade sets the stage for gold production, but execution risks remain ahead.
Questions in the middle?
- Will Forrestania opt for scrip or cash payments as the project progresses?
- How will the commissioning timeline hold up against potential operational challenges?
- What are the prospects for securing third-party ore feed to maximise plant utilisation?
