Medallion Metals eyes greater mine life after extending high-grade gold lode

Resource growth could be on the cards after Medallion Metals’ drilling extended the high-grade gold lode at Gem deposit.

Medallion Metals’ extension of the high-grade gold lode at Gem could lead to an extended mine life. Pic: Getty Images

• Medallion Metals’ drilling has extended high-grade gold lode at the Gem deposit by ~80m

• Results highlight potential to grow resources at the Ravensthorpe gold project

• Infill-focused drilling continuing ahead of defining updated resources to underpin feasibility study

Special Report: Drilling at Medallion Metals’ flagship Ravensthorpe gold project in WA has extended the high-grade lode at the Gem deposit by about 80m past the resource boundary.

This follows drilling of two reverse circulation extensional holes down plunge of the Gem lode within the Kundip Mining Centre that returned:

• 6m grading 4.6g/t gold, 1% copper and 9.1g/t silver from a down-hole depth of
  343m including 2m at 11.2g/t Au, 2.4% Cu and 19.5g/t Ag from 345m; and
• 3m at 6.8g/t Au, 0.6% Cu and 5.5g/t Ag from 346m and 2m at 3.9g/t Au, 0.6% Cu and
  2.9g/t Ag from 355m

Medallion Metals (ASX:MM8) said the intersections sat ~60m beyond the limits of the current mine plan, 40-80m beyond the current inferred resource boundary and 40-100m down plunge from drilling that determines the resource estimate.

The results confirm the potential to increase the current resource of 5.6Mt at 4.3g/t Au and 0.6% Cu for contained resources of 770,000oz Au and 36,000t Cu.

It also supports the technical team’s belief that the 6.7m semi-massive to massive sulphide intersections reported in diamond drilling on April 3, 2025 represent a newly identified and separate sulphide occurrence to the Gem main lode zone.

“These results are extremely positive and have important implications for the project as the business looks toward near-term development,” managing director Paul Bennett said.

“Project economics are significantly levered to mine life extensions and these results demonstrate that above cut-off grade mineralisation at mineable widths extends up to 60 metres down plunge from the current limits of the mine plan.

“This builds further confidence that mine life can be increased by extensions to the known lodes as well as through delineation of new lodes at depth with ongoing drilling.

“We maintain we are just scratching the surface of this significant mineralised system as continued investment delivers for our shareholders.”

Long section view of Gem showing reported drilling results. Pic: Medallion Metals

Resource extension drilling

The two holes are part of a broader 17,000m drill program designed to grow the high-grade sulphide underground resource at KMC in size and confidence.

About 15,000m of combined diamond and RC drilling has been completed under the program, which will inform a resource update underpinning a feasibility study assessing the technical and commercial viability of mining Ravensthorpe ore at a modified Cosmic Boy process plant.

In August 2024, MM8 entered an exclusivity agreement with IGO to negotiate the acquisition of the Forrestania Nickel Operation, which includes the Cosmic Boy plant and associated infrastructure.

The two holes at Gem are the only ones in the program aimed at extending resources as opposed to the predominantly infill nature of the remainder.

They targeted southwest plunge extensions of lode positions interpreted from step out drilling completed in 2022 that is also supported by a single deep diamond hole that returned 7.8m at 2.7g/t Au, 0.1% Cu and 0.6g/t Ag in January 2024.

Both holes intersected quartz-sulphide vein mineralisation at the interpreted lode position, a finding consistent with previous drilling logged from elsewhere in the Gem deposit.

Road ahead

MM8 will complete the enlarged drill program ahead of completing a Ravensthorpe resource update in June 2025 and an updated resource for Harbour View in July.

The updated resources will form the basis of a feasibility study that will inform the board’s decision to progress with a development.

Exclusive negotiations to acquire FNO from IGO also continue to advance positively with the company having extended the period of exclusivity to August 2025 to accommodate negotiation and drafting of binding documents.

Other workstreams include metallurgical, geotechnical and hydrogeological testwork and analysis to support the feasibility study, and progression of environmental permitting with a focus on primary approvals at State and Federal levels.

The company has also started seeking primary legislative approvals to allow mining to begin at Ravensthorpe and haulage of ore to Forrestania for processing.

This article was developed in collaboration with Medallion Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Medallion Metals eyes greater mine life after extending high-grade gold lode