Medallion Metals reels in the high-grade gold as Ravensthorpe development decision approaches

Medallion Metals has hit more high-grade gold at Ravensthorpe as it moves toward development at a time of record gold prices.

MM8’s latest drill results will inform a July resource update, ahead of a crucial feasibility study. Pic: Getty Images.

• MM8 releases more strong results from Ravensthorpe gold project in WA

• Company looking to update resource off the back of new assays

• Feasibility study update will consider acquisition of the Cosmic Boy process plant

 

Special Report: Drilling at Medallion Metals Kundip Mining Centre, part of its flagship Ravensthorpe project in WA, has returned up to 57.5g/t gold.

It’s the latest hint that the 1.6Moz gold equivalent project will get larger and more attractive ahead of a resource update in July and feasibility study later this year, which will outline the path to production for WA’s next mid-tier gold mine.

Medallion Metals (ASX:MM8) shares have soared 125% since the start of the year as the rising gold price has brought the value proposition for the $131m capped junior into full view.

A $27.5m placement earlier this month including some major global and Australian institutions shows the smart money believes it as well.

Hits from the footwall sulphide zones at the Gem and Harbour View deposit will no doubt add to their conviction in Medallion’s Ravensthorpe development.

These latest infill and extensional drilling results returned best results at the Gem deposit of:

• 7.8m at 17.4g/t gold, 1.5% copper, 6.6g/t silver from 218.2m, including 2.3m at 57.5g/t gold, 5.0% copper, 20.4g/t silver from 218.2m,
• 5.7m at 4.3g/t gold, 1.5% copper, 6.9g/t silver from 286.3m, including 1.6m at 7.4g/t gold, 4.4% copper, 20.2g/t silver from 291.9m,
• 7.7m at 5.9g/t gold, 3.4% copper, 22.2g/t silver from 350.5m, including 3.7m at 11.3g/t gold, 4.8% copper, 33.3g/t silver from 354.5m,
• 4.0m at 18.7g/t gold, 1.6% copper, 9.0g/t silver from 263m, including 1.8m at 39.8g/t gold, 3.4% copper, 25.4g/t silver from 264.6m; and
• 4.6m at 9.2g/t gold, 0.6% copper, 3.6g/t silver from 189.5m, including 0.7m at 56.6g/t gold, 4.1% copper, 22.1g/t silver from 354.5m.

Results from metallurgical sample drilling at the Flag and Harbour View deposits include:

• 2.3m at 9.5g/t gold, 0.3% copper, 4.6g/t silver from 226.6m
• 2.5m at 6.0g/t gold, 1.1% copper, 2.5g/t silver (7.8g/t AuEq) from 102.1m; and
• 3.6m at 2.8g/t gold, 0.9% copper, 3.9g/t silver (4.2g/t AuEq) from 180.9m including 1.1m at 6.4g/t gold, 0.8% copper, 4.1g/t silver (7.8g/t AuEq) from 182.0m

Medallion Metals say the results continue to bolster confidence in the existing resource estimate in addition to highlighting exceptional growth potential of the shallowly drilled deposit.

A 17,000m drill drive is now complete with assays for the last 1800m expected next month.

MM8 will plug the new results into a resource and study, which will incorporate its plan to repurpose IGO’s (ASX:IGO) mothballed Cosmic Boy nickel plant at Forrestania.

A previous scoping study replacing a newly built processing facility with the retooled Cosmic Boy chopped its likely construction bill from $163m to just $73m.

More from MM8 on the Explorers Podcast: Medallion Metals holding golden upside heading to production

Resource update and upside potential

An updated resource estimate is now on track for release in July incorporating all new drilling, which will form the basis of the updated feasibility study mine plan expected in the December quarter.

“These exceptional results from Gem are extremely positive and will now contribute to a resource update for the first lode scheduled for mining in the feasibility study mine plan,” MM8 managing director Paul Bennett said.

“Deposit continuity, grades and thicknesses observed consistently throughout this drill program build a great deal of confidence in the early stages of the mine plan which is so critical to project success.”

The company says the new footwall sulphide intersections at Gem and Harbour View are strongly mineralised representing significant growth opportunities and warranting following up drilling – expected in the third quarter of 2025.

“In addition, confirmation that both new footwall lode intercepts at Gem and Harbour View are strongly mineralised add to the growth story and will now be the target of follow up drilling,” Bennett said.

“We look forward to results continuing to flow from Harbour View in advance of the resource update expected in July.”

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 reels in the high-grade gold as Ravensthorpe development decision approaches