Medallion Metals Advances Early Production at Forrestania Gold Project

Forrestania Production Brought Forward by Nine Months

Medallion Metals Limited (ASX:MM8) has confirmed the launch of an Early Production Strategy (EPS) at its Forrestania Gold Project, aiming to commence processing operations in Q4 2026. This is a significant acceleration, bringing forward gold production by approximately nine months ahead of the planned Ravensthorpe ore treatment scheduled for mid-2027. The EPS will utilise the existing Cosmic Boy Concentrator (CBC) infrastructure, repurposed for gold recovery, to generate early cashflow and de-risk the plant before Ravensthorpe ore processing begins.

Capital-Efficient Use of Existing Infrastructure

The EPS requires an incremental capital investment of $2.1 million, inclusive of a 25% contingency, which will be funded from Medallion’s existing cash reserves. The company expects rapid payback once steady-state operations commence. The processing approach involves only minor modifications to the CBC’s crushing, grinding, and tank infrastructure, converting it to a conventional carbon-based gold recovery circuit. Final doré production will be handled through off-site refining facilities.

Third-Party Ore Feed Secured Through Toll Processing Agreement

To maximise throughput ahead of Ravensthorpe commissioning, Medallion has executed a Toll Processing Agreement (TPA) with a private third party. Under this agreement, a minimum of 200,000 dry metric tonnes (dmt) of third-party material will be processed between September 2026 and May 2027, with potential for volume increases depending on plant performance. Medallion will earn a fixed fee of $100 per dmt processed, insulating the company from ore grade and recovery risks. This arrangement supports utilisation of approximately 240,000 dmt of processing capacity available before the expanded Ravensthorpe circuit comes online.

Operational Readiness and Workforce Expansion

Recommissioning of the CBC infrastructure has already begun, leveraging Medallion’s existing processing, maintenance, and operations teams. Recruitment efforts are well advanced to bolster personnel numbers in preparation for EPS operations. The company is also evaluating tenders for the construction of the carbon-in-column (CIC) circuit, a key component for gold recovery. Third-party ore deliveries are expected to start imminently, signalling a swift transition from planning to production.

Strategic Implications for Ravensthorpe and Forrestania

By bringing forward production at Forrestania, Medallion not only accelerates cashflow generation but also mitigates risk associated with the commissioning of the Ravensthorpe ore treatment circuit. The EPS does not impact the Ravensthorpe development schedule, preserving the targeted Q2 2027 start date for ore processing there. This dual-track approach reflects a pragmatic utilisation of assets and a flexible response to operational timelines. It also complements recent developments at Forrestania, including promising gold mineralisation at the Teddy Bear deposit, which may feed into early production plans.