Medallion Metals has kicked off reverse circulation drilling at Lounge Lizard and Teddy Bear within its Forrestania Gold Project, validating high-grade historical results and targeting a maiden resource by Q3 2026.
- High-grade gold intersections validated at Lounge Lizard
- RC drilling underway beneath McMahon’s open pit
- Maiden Mineral Resource Estimate targeted for Q3 2026
- Proximity to Cosmic Boy Concentrator supports development
- Ongoing validation of extensive historical drill database
Strong Historical Gold Grades Underpin New Drilling Campaign
Medallion Metals Limited (ASX:MM8) has commenced its first drilling at the Forrestania Gold Project (FGP), focusing on the Lounge Lizard gold deposit and nearby Teddy Bear stockpiles. The company reported a suite of validated historical drill results confirming significant high-grade gold mineralisation beneath the McMahon’s open pit, a northern extension of the broader Lounge Lizard system. Highlights include intercepts such as 6 metres at 10.04 g/t Au from 26 metres and 2 metres at 20.5 g/t Au from 25 metres, underscoring the quality of mineralisation that Medallion aims to convert into a maiden Mineral Resource Estimate (MRE) targeted for Q3 2026.
These historical results, drawn from 48 validated drill holes with an additional 337 under review, form a compelling base for the current reverse circulation (RC) drilling program designed to confirm and extend known mineralisation. The drilling is concentrated beneath the historical McMahon’s pit and along strike, where the system remains open at depth. This initiative builds directly on earlier validation work that confirmed the continuity of a shear-hosted gold system extending over approximately one kilometre of strike, with mineralisation hosted within two converging north-south trending shear zones.
Strategic Location Near Processing Infrastructure
Lounge Lizard sits on a granted mining lease adjacent to the former Flying Fox underground mine and is linked by a 14-kilometre private haul road to the Cosmic Boy Concentrator (CBC), a central processing hub Medallion controls within the Forrestania tenure. This proximity underpins potential operational efficiencies and supports the company’s plan to introduce Lounge Lizard as a second production source feeding the Cosmic Boy gold plant, supplementing ore from Ravensthorpe. The integration of these assets could accelerate Medallion’s path to production and cashflow generation, complementing recent advances in refurbishing the CBC as reported in the company’s ongoing development updates.
Validation and Resource Definition Progress
The company’s Managing Director, Paul Bennett, highlighted that the drilling and validation work is focused on confirming historical results and progressing mill feed opportunities toward resource definition. The current RC drilling program at McMahon’s has started following Program of Work approval, with an initial nine-hole campaign planned to test extensions beneath the old pit and along strike. Concurrent drilling at historical Teddy Bear stockpiles aims to unlock additional feed sources. This systematic approach to resource definition is supported by ongoing re-sampling of diamond core from historical programs and geotechnical assessments to facilitate future drilling access.
Medallion has already released 113 of approximately 450 historical drill holes, with further results expected as validation continues. The company plans to complete a maiden MRE for the Forrestania Gold Project deposits by Q3 2026, which will inform preliminary mining studies evaluating open pit and underground development scenarios and the integration of Lounge Lizard into the existing processing infrastructure.
Historical Exploration Legacy and Forward Momentum
The Forrestania Gold Project has a rich exploration history, with drilling between 1995 and 1999 defining the mineralised shear zones that Medallion is now systematically validating. The project changed hands multiple times before Medallion’s acquisition from IGO Limited in early 2026, a transaction that gave the company control over key infrastructure and a strategic foothold in Western Australia’s gold belt. This acquisition and the subsequent drilling programs represent a pivotal step in Medallion’s growth strategy, complementing its other assets such as the Ravensthorpe Gold Project. The company’s progress towards resource definition and production readiness is being closely watched by the market, particularly given the potential to ramp up feed to the Cosmic Boy Concentrator.
Medallion’s drilling campaign at Lounge Lizard is thus a critical milestone in unlocking the project’s value, with the company targeting a resource estimate that could underpin future development decisions. The combination of high-grade historical results, ongoing drilling, and proximity to existing processing facilities positions Medallion to advance its gold production ambitions in the near term. Investors will be keen to monitor forthcoming assay results and the maiden resource announcement as indicators of the project’s commercial potential.
Bottom Line?
Medallion’s drilling at Lounge Lizard marks a key step toward defining a substantial gold resource, but the true scale and continuity of mineralisation remain to be confirmed through ongoing assays and resource modelling.
Questions in the middle?
- How will the maiden resource estimate impact Medallion’s production timeline and capital allocation?
- What potential exists for extending mineralisation beyond currently validated historical drill data?
- How might integration of Lounge Lizard feed with the Cosmic Boy Concentrator influence operational costs and throughput?