Medallion Metals continues down approval pathway for Ravensthorpe gold project

Medallion Metals is closer to securing EPBC approval, the key outstanding required to develop its 1.6Moz Ravensthorpe gold project.

Medallion Metals expects to receive a decision on the EPBC approval for its Ravensthorpe gold project in Q3 2025. Pic: Getty Images

• Medallion Metals’ Ravensthorpe gold project takes next key step in approvals process

• Application for 1.6Moz project referred to the Assessment of Preliminary Documentation stage

• Decision on EPBC approval, the key stamp outstanding for the project, expected during Q3 2025

Medallion Metals is closer to developing its 1.6Moz gold equivalent Ravensthorpe project on WA’s south coast after progressing to the next step in its approvals process with the Federal Government.

Canberra’s Department of Climate Change, Energy, the Environment and Water has now progressed the company’s application under the Environment Protection and Biodiversity Conservation Act 1999 to the Assessment of Preliminary Documentation stage.

This is a significant positive step for Medallion Metals (ASX:MM8) and its sulphide development strategy, which will involve mining ore from deposits at Ravensthorpe and processing at the Cosmic Boy mill at Forrestania.

The assessment to be carried out by DCCEEW will be based mainly on the original referral document, which will be supplemented by further information related primarily to biological surveys and proposed offsets.

MM8 expects to collate and lodge further information – likely a combination of desktop and field data – requested during March 2025.

Once confirmation is received that the additional information meets the assessing department’s requirements, the referral document and additional information will be publicly advertised for a period of at least 10 business days.

After this, the company will have another 10 days to revise documentation taking into account any relevant comments received prior to re-submission to DCCEEW.

This will place the project squarely on the road to approvals as the DCCEEW is required to make a decision within 40 business days of receiving valid final documentation.

MM8 expects a decision on the EPBC approval, which is the key regulatory sign-off outstanding for the project, to be received during Q3 2025.

The EPBC Act referral will be critical in determining the timeline to commencement of the proposed development, subject to successfully concluding negotiations to acquire the infrastructure at Forrestania from IGO (ASX:IGO), which suspended nickel mining operations there last year.

Ravensthorpe project

MM8’s Ravensthorpe project is one of the largest slated for development as a standalone mine in WA.

The company has an exclusivity deed with IGO to repurpose its concentrator from the mature Forrestania nickel mines, which shut due to low prices and falling reserves.

That will cut development costs to just $73m to bring the project into production, according to a study last year.

Ravensthorpe is expected to produce 336,000oz of gold and 13,000t of copper over an initial 5.5-year mine life at all-in sustaining costs of $1845/oz with a copper credit.

It is expected to generate pre-tax cash flow of $498m at a fairly conservative gold price of $3615/oz and copper price of $5.54/lb – equivalent to around $90m per annum.

This cash flow jumps to $637m using December 2024’s spot pricing levels of $4000/oz gold and $6.15/lb copper. The former is looking likely given the spot price in Australian dollars is currently well above $4500/oz.

Profitability is similarly impressive with pre-tax NPV and IRR estimated at $329m and 129% respectively under the base case.

Other upside could come through the development of the project’s oxide and transitional resources of 10.3Mt at 1.6g/t Au (520,000oz) as well as the polymetallic Trilogy deposit (5.6Mt at 0.9g/t Au, 54.4g/t Ag, 1.2% Cu, 2.4% Pb and 1.4% Zn).

The future acquisition of the Cosmic Boy mill at Forrestania could also open a pathway to developing small third-party gold deposits closer to the plant, which is located south of Southern Cross in WA’s Yilgarn.

This potential has been recognised by Alkane Resources (ASX:ALK), which increased its stake in MM8 to 6.3% this week after investing >$1m in the junior’s $6.5m placement to fund a bankable feasibility study and progress permitting activities.