Medallion Metals Limited (ASX:MM8) Delivers Strong Scoping Study Results
Medallion Metals Limited (ASX:MM8) has released promising results from the initial Scoping Study for the Ravensthorpe Gold Project (RGP), showcasing a compelling opportunity for gold-copper production in the near term.
Study Highlights
The Scoping Study confirms the Ravensthorpe Gold Project as a technically and commercially viable development venture. It outlines an initial production inventory of 2.7 million tonnes at an average grade of 3.9 g/t gold and 0.6% copper, leading to forecasted total production of 336,000 ounces of gold and 13,000 tonnes of copper over a 5.5-year mine life. Under base case assumptions, the study estimates pre-tax cash flows to average A$90 million annually, with total pre-production capital costs projected at A$73 million.
The economic analysis presents an estimated pre-tax Net Present Value (NPV) of A$329 million and an Internal Rate of Return (IRR) of 129%. The payback period is anticipated at 12 months under base case assumptions.
Next Steps and Developments
Medallion is advancing its 15,000 metre drill program aimed at enriching the high-grade sulphide underground resource at the RGP and is progressing through the environmental approvals process. The project has been referred under the Environment Protection and Biodiversity Conservation Act with feedback expected in early 2025. Successful completion of ongoing exclusive negotiations to acquire processing infrastructure at the Forrestania Nickel Operation (FNO) is critical to the project’s advancement.
Paul Bennett, Managing Director of Medallion, commented, “The study demonstrates a unique and compelling opportunity to bring the Ravensthorpe mineral resource together with the established infrastructure at Forrestania to achieve a low capital, low risk and rapid pathway to gold and copper production in a very strong price environment.”
The company also highlights significant upside potential through unresolved mineral resource extensions and the manageable costs associated with processing at FNO.
Conclusion
The company believes the results of the Scoping Study position Medallion Metals as well-prepared for potential gold-copper production, offering attractive returns while also opening pathways for future growth.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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