Latest news with #Forrestania
Yahoo
5 days ago
- Business
- Yahoo
Medallion signs binding deal for IGO's Forrestania assets in Western Australia
Medallion Resources has entered a conditional binding asset sale agreement with IGO to acquire 100% of the latter's Forrestania Gold Operation (FNO) in Western Australia (WA). The acquisition aims to create a new gold and copper producer in WA combining Medallion's Ravensthorpe Gold Project resources with FNO's infrastructure. A scoping study confirmed the project's technical and commercial viability, with a production profile of approximately 70,000oz per annum of gold equivalent. Under the agreement, Medallion will acquire all the assets including the Cosmic Boy plant and equipment, infrastructure, inventories and information, including mineral rights other than Reserved Rights from IGO. In exchange, Medallion will grant a 1.5% royalty to IGO on future gold production from the tenements. IGO will retain the Reserved Rights to explore and develop nickel and lithium on the tenements, access to the tenements for these purposes and various logistical support at agreed costs. The agreement is contingent on several conditions including the execution of ancillary agreements, a feasibility study by Medallion, funding commitments, and necessary consents and approvals. The final investment decision (FID) and the completion of the transaction are expected in late 2025. Medallion remains 'well funded', with approximately A$29m ($18.7m) in cash reserves. These funds are being allocated to various ongoing initiatives that will contribute to the FID including test work, feasibility studies and permitting activities. Concurrently, the company is engaged in negotiations with prospective financiers and offtake partners. Medallion managing director Paul Bennett said: 'Medallion is pleased to achieve this significant transaction milestone. The company now turns its focus to the development of a new gold and copper producer in Western Australia. Bringing the established high-grade gold-copper resources at Ravensthorpe together with the Forrestania plant and infrastructure can unlock significant value in the short term, with a substantial option on future growth from the new discovery potential of the tenure at both Ravensthorpe and Forrestania. 'Study work is at an advanced stage, permitting is being progressed as a priority and discussions continue to advance positively with offtake and finance parties. We expect to provide positive updates on all these key work streams in the near term as the business advances toward a decision to proceed with this exciting development opportunity.' "Medallion signs binding deal for IGO's Forrestania assets in Western Australia" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Australian
6 days ago
- Business
- The Australian
MM8 on path to Ravensthorpe production
Medallion snags Forrestania Nickel Operation from IGO for 1.5% net smelter royalty on future gold production Deal preserves $29m war chest to progress work streams to facilitate Ravensthorpe development decision Resource upgrade and metallurgical work will feed into key feasibility study Special Report: Medallion Metals has executed an agreement to acquire IGO's Forrestania Nickel Operation, which will enable a fast-tracked pathway to gold and copper production from its Ravensthorpe project in WA. The agreement includes the existing Cosmic Boy processing plant and equipment, infrastructure, inventories and information including mineral rights other than nickel and lithium. This is a key plank in Medallion Metals' (ASX:MM8) plan to make a Ravensthorpe final investment decision in late 2025 that will transform it into WA's newest gold and copper producer. What makes the deal attractive is that there's no upfront or deferred cash consideration with the company granting IGO (ASX:IGO) a net smelter royalty of up to 1.5% on all future gold production from the tenements as consideration for the acquisition. It allows the company to preserve its circa $29m in cash reserves to progress multiple work streams such as testwork, feasibility studies and permitting activities to support the FID. IGO also retains the right to explore for, develop and mine nickel and lithium minerals over the tenements. 'The company now turns its focus to the development of a new gold and copper producer in Western Australia,' managing director Paul Bennett said. 'Bringing the established high-grade gold-copper resources at Ravensthorpe together with the Forrestania plant and infrastructure can unlock significant value in the short term, with a substantial option on future growth from the new discovery potential of the tenure at both Ravensthorpe and Forrestania. 'Study work is at an advanced stage, permitting is being progressed as a priority and discussions continue to advance positively with offtake and finance parties.' The acquisition is subject to several conditions including MM8 preparing and announcing a feasibility study, entering into a binding unconditional debt facility agreement and/or funding commitments, and reaching FID on the project. Ravensthorpe project The ~300km2 Ravensthorpe project is centred on the historical Kundip mining centre midway between the regional centres of Ravensthorpe and Hopetoun. It benefits from excellent infrastructure and is easily accessed by sealed roads with a sealed airstrip 10km to the south of the project. Resources currently stand at 19.2Mt grading 2.1g/t gold and 0.3% copper for contained resources of 1.3Moz gold and 56,000t copper. A scoping study completed in December 2024 estimated the project could produce 336,000oz of gold and 13,000t of copper from a production inventory of 2.7Mt grading 3.9g/t Au and 0.6% Cu, over a mine life of 5.5 years. This will generate pre-tax free cash flow of $498m using a base case assumed gold price of $3615/oz and copper price of $5.54/lb, which increases to $637m at a gold price of $4000/oz and copper price of $6.15/lb. The Forrestania Nickel Operations and Ravensthorpe gold project. Pic: Medallion Metals Given that gold prices currently stand at about US$3352/oz ($5177.44/oz) while copper is priced about US$4.40/lb ($6.80/lb), these figures can be considered to be fairly conservative. Forecast average all-in-sustaining cost is estimated at just $1845/oz of gold inclusive of net by-product credits while total pre-production capex is expected to be about $73m including mine establishment and process plant modifications. Pre-tax NPV and IRR is estimated at $329m and 129% respectively in the base case with payback expected within just 12 months Establishment of the proven, industry standard process route of gravity-flotation-CIL at Forrestania is expected to deliver high gold recovery of 98% and copper recovery of 80%. MM8 notes there's plenty of upside as the initial production inventory represents just 44% of existing sulphide resource (gold) with existing shallow drilling indicating the potential for further mineralisation at depth. There is also potential for commercialisation of its oxide and transitional resources (10.3Mt at 1.6g/t gold for 520,000oz of contained gold). Next steps The company is currently working with IGO to finalise ancillary agreements and progress towards transaction finalisation and closure. It expects to release an updated resource estimate in August that incorporates the results of the recently completed 17,000m drill program along with metallurgical recovery and metal deportment assumptions that will inform the feasibility study. MM8 has also materially progressed process engineering associated with planned modifications to the Cosmic Boy flotation plant. It will now begin placing orders for long lead time items inclusive of a secondary ball mill. Additionally, the company has submitted all additional information requested by the Department of Climate Change, Energy, the Environment and Water following its determination that the project will be assessed under preliminary documentation following its referral under the Environment Protection and Biodiversity Conservation Act 1999. Work has also started on submissions under the Environmental Protection Act 1986 while negotiations with potential offtake and finance parties are ongoing with MM8 expecting to mandate a preferred offtake and finance partner to work on an exclusive basis to establish binding concentrate offtake terms and finance terms. 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.
The Australian
16-06-2025
- Business
- The Australian
Nimy hits high-grade gallium
Nimy delivers impressive gallium grades at Block 3 Gallium runs from surface to the end of hole depth of 240m where it remains open Nimy intends to establish a maiden resource for release in the December quarter Special report: Phase 2 drilling at Nimy's Block 3 project in WA has delivered high-grade gallium in the first four holes, confirming the potential for the asset to emerge as a standalone gallium development. Consistent near-surface and deeper mineralisation has been intersected across all holes, including: 240m at 55g/t gallium trioxide, including 56m at 101g/t Ga2O3 from 60m; 240m at 57g/t gallium trioxide, including 20m @ 102g/t Ga2O3 from 40m; 240m at 30g/t gallium trioxide, including 28m at 59g/t Ga 2O3 from 216m to the end of the hole; 240m at 37g/t gallium trioxide, including 8m at 108g/t Ga2O3 from 144m and 20m @63g/t Ga 2 O 3 from 220m to end of hole. The gallium runs from surface to the end of hole depths of 240m, where it remains open. Results have extended and infilled known mineralisation with assays pending from the remaining nine holes of the phase 2 program and 12 holes from the soon-to-be-completed phase 3 program. Background on Block 3 Recent exploration uncovered the gallium opportunity at Nimy's (ASX:NIM) Block 3 project within the Mons greenstone belt, northwest of the Forrestania nickel-lithium district. The project boasts an exploration target of 9.6-14.3Mt at 39ppm to 78ppm gallium, positioning the company to potentially become WA's first primary producer of the critical mineral. Gallium, a specialty metal essential for computer chip production and widely used in electronics, AI and defence, has seen rising global interest following China's 2023 export controls. While most gallium is produced as a secondary output from alumina and zinc operations, NIM is looking to establish a primary source at Block 3, where standout grades have been identified. Targeting high-grade gallium resource NIM managing director Luke Hampson said the first assays from phase 2 drilling indicated a continuation of high-grade gallium immediately east, west and south of the company's previously drilled high-grade holes. 'These results give us confidence in our drilling strategy, targeting a substantial high-grade gallium JORC resource. 'Importantly, drilling is demonstrating an extensive and coherent mineralised system,' he said. 'With phase 3 nearing completion and remaining phase 2 assays due shortly, we are defining a globally significant gallium project capable of supporting, in part, the supply needs of the Western world.' What else is happening? Upon receipt of the final assays from phase 3 drilling, NIM intends to calculate a maiden resource for release in the December quarter. Exploration is also underway to identify extensions of chlorite schist which hosts the gallium. The schist has already been identified well beyond the known mineralisation, highlighting the scope for ongoing growth in the discovery. This article was developed in collaboration with Nimy Resources, 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.
