Forrestania Completes Karonie Acquisition Adding 185,700 oz Gold Resource

Strategic Expansion in Eastern Goldfields

Forrestania Resources (ASX:FRS) has formally completed its acquisition of the Karonie Gold Project from Goldtribe Corporation, a subsidiary of Alchemy Resources (ASX:ALY), marking a significant step in consolidating its presence in Western Australia’s Eastern Goldfields. The deal, announced initially in March 2026, was settled with $5 million in shares and includes a 1% net smelter royalty, excluding the first 110,000 ounces from key deposits KZ5, Parmelia, and Taupo.

The acquisition adds 16 granted exploration licences spanning approximately 942 square kilometres, strategically located about 100 kilometres east of Kalgoorlie. This sizeable tenure bolsters Forrestania’s pipeline of gold assets near existing processing infrastructure, a key element of its growth strategy. The project sits adjacent to Vault Minerals’ Aldiss Mining Centre, which holds reserves and resources exceeding 595,000 ounces at 2.0 g/t Au, and is within 50 kilometres of Vault’s Randalls processing plant, enhancing potential synergies.

JORC-Compliant Resource with Exploration Upside

Karonie hosts a JORC 2012 compliant Inferred Mineral Resource estimated at 6.5 million tonnes grading 0.9 grams per tonne gold, containing 185,700 ounces. This resource is spread across three deposits: KZ5 (110,200 ounces at 0.9 g/t), Parmelia (52,100 ounces at 0.8 g/t), and Taupo (23,400 ounces at 1.2 g/t). The estimate was independently prepared by Auranmore Consulting, leveraging extensive drilling data including 70 reverse circulation (RC) holes, 9 diamond core holes, and 9 air-core holes.

The mineralisation is structurally controlled, hosted within shear zones and dolerite units typical of mesothermal gold systems. Geological modelling used wireframe boundaries at a 0.3 g/t cutoff, with mineralisation characterised by quartz veins within steeply west-dipping shear zones. The project benefits from its proximity to significant deposits, lying just 12 kilometres south along strike from Ramelius Resources’ Bombora deposit, which holds 1.7 million ounces at 1.6 g/t Au, and extending towards Northern Star Resources’ Carosue Dam mine.

Capital-Efficient Deal Structure and Next Steps

The acquisition structure preserves Forrestania’s capital by using shares rather than cash, while the 1% net smelter royalty provides ongoing exposure to future production without upfront cost. Forrestania Chairman David Geraghty emphasised that the deal secures a project with an established resource and clear exploration upside, allowing the company to advance its broader portfolio in Western Australia, which includes recent developments at Burracoppin and British Hill.

Looking ahead, Forrestania plans staged infill drilling aimed at upgrading the resource classification from Inferred to Indicated, alongside metallurgical test work to inform potential mining and processing pathways. No metallurgical studies have yet been conducted on Karonie’s mineralisation, but these are slated to follow upcoming drilling campaigns. The company anticipates open pit mining methods for Karonie, with a 0.5 g/t cutoff grade underpinning resource reporting.

Regional Gold Hub with Proven Potential

Forrestania’s acquisition complements its broader Eastern Goldfields strategy, which includes projects near Coolgardie and Menzies, providing exposure to proven mineralised corridors. The Karonie Project’s location near established gold operations and processing facilities offers logistical advantages and potential cost efficiencies. This move aligns with Forrestania’s recent announcements of resource growth and development progress at Burracoppin, where a maiden inferred resource of 58,700 ounces was reported, and British Hill, where high-grade drilling continues to bolster prospects.

These developments position Forrestania as a growing player in WA’s gold sector, combining disciplined exploration with strategic acquisitions to build a diversified asset base. The company’s approach to converting inferred resources into higher confidence categories, as seen in its other projects, will be critical in realising Karonie’s value.