Medallion Metals reported a new high-grade sulphide lode discovery at Ravensthorpe and significant progress on refurbishing the Cosmic Boy Concentrator, positioning the company for accelerated gold production.
- Discovery of Hillsborough Deeps sulphide lode outside current resource
- Completion of FEED and $7.6 million Early Works Agreement for Cosmic Boy refurbishment
- 16,500m drilling at Kundip Mining Centre confirming resource continuity
- Early Production Strategy to bring forward gold output at Forrestania
- Company debt-free with $54 million cash on hand
New High-Grade Lode Emerges at Ravensthorpe
Medallion Metals Limited (ASX:MM8) has uncovered a fresh high-grade sulphide lode dubbed Hillsborough Deeps at its Kundip Mining Centre, part of the Ravensthorpe Gold Project. The discovery sits outside the current sulphide Mineral Resource Estimate, offering a tantalising extension close to planned underground development. Drillhole DD26KP1243 returned significant assays including 4.7 metres at 7.2g/t gold and 3.9% copper, underscoring the lode's potential. This finding builds on recent confirmatory drilling that reinforced mineralisation continuity at the Gem and Harbour View deposits, with assays pending for 8,500 metres of drilling. Systematic downhole electromagnetic (DHEM) surveys have also identified multiple high-conductance targets, suggesting the mineralised system remains open for expansion down-dip and along strike.
The drilling program, totalling approximately 16,500 metres of combined RC and diamond drilling during the quarter, is a critical step in refining the early stages of the Feasibility Study mine plan ahead of underground mining. The program has confirmed extensions of historical workings and highlighted growth opportunities beyond the current mine design, positioning Medallion to potentially boost its resource base.
Cosmic Boy Concentrator Refurbishment Nears Key Milestones
On the processing front, engineering efforts at the Cosmic Boy Concentrator (CBC) have reached a pivotal milestone with the completion of Front End Engineering and Design (FEED). This confirms the capital estimate for refurbishing and modifying the plant to handle ore from Ravensthorpe. Medallion has executed a $7.6 million Early Works Agreement with GR Engineering Services Ltd to advance detailed engineering and procurement ahead of the final EPC contract, expected to be signed in August 2026.
Fabrication of a new secondary ball mill by CITIC Heavy Industries is substantially complete, with delivery slated for August. The upgraded plant is designed to process 650,000 tonnes per annum of Ravensthorpe sulphide ore to a target grind size of P80 75 microns. Commissioning is targeted for the second quarter of 2027, aiming for steady-state production in the latter half of the year.
Early Production Strategy to Accelerate Cash Flow at Forrestania
Medallion is also advancing an Early Production Strategy at its Forrestania Gold Project, leveraging existing crushing, grinding, and tank infrastructure at CBC ahead of Ravensthorpe ore deliveries. Engineering reviews and commercial discussions for third-party toll treatment have progressed, culminating in a Toll Processing Agreement post-quarter end. This approach aims to generate gold production approximately nine months earlier than previously planned, accelerating cash flow and de-risking the processing infrastructure ahead of full Ravensthorpe commissioning.
Exploration at Forrestania continues with validation of historical drilling at the Lounge Lizard deposit and initial RC drilling programs at McMahon's and Teddy Bear. The drilling has confirmed continuity of mineralisation over more than one kilometre of strike and to depths of around 466 metres. A maiden Mineral Resource Estimate for Forrestania deposits is targeted for the fourth quarter of 2026.
Financial Position and Upcoming Development Activities
Medallion ended the quarter debt-free with $54 million in cash, having repaid its loan from PHGM Pty Ltd. Expenditure during the quarter included $3.1 million on exploration and evaluation and $2.7 million on pre-development activities. The company is preparing for key development milestones in the September 2026 quarter, including the commencement of box cut excavation at Kundip Mining Centre pending final approvals, delivery of the secondary ball mill, and finalisation of the EPC contract for CBC refurbishment.
Operationally, Medallion has bolstered its team with 17 new hires to support upcoming production activities. The company also continues to explore strategic growth opportunities, though these remain preliminary and confidential.
With drilling results pending and multiple development fronts advancing, Medallion is positioning itself for a transition from exploration to production, aiming to capitalise on its expanding resource base and upgraded processing capabilities.
Bottom Line?
Medallion’s discovery and processing upgrades set a solid foundation, but pending assays and approvals will be critical to sustaining momentum.
Questions in the middle?
- Will pending assay results confirm further resource extensions at Kundip?
- How will the Early Production Strategy impact cash flow and project risk profiles?
- What are the timelines and risks associated with finalising the EPC contract for Cosmic Boy?