Medallion prepares for first gold as Cosmic Boy processing nears

Cosmic Boy moves towards first gold sales

Medallion Metals Limited (ASX:MM8) is approaching the most consequential point in its development story: processing is scheduled to begin at the Cosmic Boy Concentrator in October, with first gold production and sales expected during November.

The initial campaign will use about 5,000 tonnes of Medallion-owned Teddy Bear stockpile material to commission the plant and establish gold in circuit. Third-party ore is also being delivered ahead of toll treatment, which will generate processing fees of $100 per dry metric tonne once commissioning is complete. The announcement does not provide expected production volumes, recoveries, revenue or operating costs.

Cosmic Boy refurbishment runs alongside commissioning

The concentrator is being upgraded while the Early Production Strategy proceeds. About 15% to 20% of the engineering, procurement and construction program is complete, the crushing circuit is operational and mill feed is being accumulated in the fine ore bin.

GR Engineering Services is leading the refurbishment and modification work, including installation of a second ball mill and upgrades to the grinding circuit for Ravensthorpe gold-copper sulphide ore. The program builds on the Cosmic Boy EPC contract, which was previously reported at $50 million and was intended to align the plant upgrade with the planned production timetable.

Kundip construction reaches first blasting milestone

At the Kundip Mining Centre, bulk earthworks are 50% complete and box-cut excavation is 38% complete, with about 29,000 bank cubic metres removed. The first box-cut blast took place on 10 October, while construction is also progressing on the run-of-mine pad, waste rock dump, access roads, water infrastructure and mine office precinct.

Macmahon is preparing to mobilise personnel and equipment in late October, ahead of portal establishment in November and the first cut of the underground decline in December. The contractor's role follows the Macmahon mining contract, previously reported as a three-year, $240 million underground mining agreement.

Ore haulage and infrastructure still carry execution risks

Medallion continues to target first underground ore from Kundip in the second quarter of calendar 2027, with the material to be hauled to Cosmic Boy for processing. The planned intersection upgrade at Kundip remains subject to final approval from Main Roads Western Australia, with construction scheduled for the first quarter of 2027 ahead of planned ore haulage.

The company says the development program remains on schedule and within budget. Accommodation upgrades in Ravensthorpe are underway, while equipment from the former Spotted Quoll mine at Forrestania is being dismantled for relocation to Kundip, a reuse strategy intended to reduce development costs. The current construction phase follows Ravensthorpe development approval, which preceded the shift into project execution.

Drilling targets new resource estimates

Exploration remains active around Forrestania. A 3,000-metre diamond drilling program at Lounge Lizard is testing 10 priority holes to validate, infill and extend mineralisation, with an initial Mineral Resource Estimate targeted for the fourth quarter and final assays expected in January 2027.

At Teddy Bear, a 500-metre reverse-circulation program across 10 holes is intended to validate the existing resource and support an updated estimate in the fourth quarter. Drilling at Kundip is also being prepared, targeting resource extensions and other exploration opportunities that could support future growth.

The next test is commissioning, not construction

Managing Director Paul Bennett said the company was preparing to process its first gold ore at Cosmic Boy while construction at Kundip advanced towards underground mining. “Our focus remains on delivering safely, maintaining our schedule and managing costs as we bring both projects into production,” Bennett said.

That makes the next few months unusually dense with operational milestones: commissioning and first sales at Cosmic Boy, portal and decline development at Kundip, regulatory approval for the intersection upgrade, and resource estimates from Lounge Lizard and Teddy Bear. Each is scheduled rather than completed, leaving execution and commissioning performance as the immediate measure of whether Medallion's production transition is translating from timetable to operating reality.