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Medallion Metals has secured a minimum of 200,000 tonnes of third-party ore for processing at its Cosmic Boy concentrator in Western Australia, strengthening its early production strategy ahead of planned gold production.
The arrangement, confirmed in Medallion’s September quarterly activities report, provides an initial source of mill feed as the company advances development across its Forrestania and Ravensthorpe gold projects.
Under the toll processing agreement, Medallion will process third-party gold-bearing material at Cosmic Boy ahead of the planned delivery of sulphide ore from the Kundip Mining Centre (KMC) in 2027.
Preparations progressed during the quarter, with the existing run-of-mine pad cleared of residual nickel-bearing material and deliveries of third-party gold ore commencing.
New carbon-in-column tanks required for gold recovery were also installed following the quarter, while commissioning of the crushing circuit commenced in October.
As previously covered, Medallion said it was targeting initial gold processing at Cosmic Boy in October, with first production and sales expected in November.
The early production strategy is intended to bring forward revenue while allowing Medallion to commission and operate existing processing infrastructure ahead of Ravensthorpe ore treatment.
Meanwhile, refurbishment and modification works continued at Cosmic Boy following the award of an engineering, procurement and construction contract to GR Engineering Services.
The program was approximately 30 per cent complete by mid-September, with a new secondary ball mill arriving at Fremantle during the quarter before being delivered to site in early October.
The modified plant is designed to process 650,000 tonnes of Ravensthorpe sulphide ore annually, with commissioning on Kundip material targeted for the second quarter of 2027.
At Ravensthorpe, mine development progressed following the receipt of final regulatory approvals in August, with civil works, access roads and surface infrastructure advancing ahead of underground development.
Mining contractor Macmahon was selected as the preferred tenderer for a proposed $240 million underground mining contract, with development activities scheduled to commence during the December quarter.
Medallion also continued expanding its exploration program at Kundip, with a 9000m drilling campaign planned for November to investigate high-grade gold-copper mineralisation at depth.
At Forrestania, drilling at Lounge Lizard identified a new hangingwall lode and extended known gold mineralisation, supporting its potential as an additional source of feed for Cosmic Boy.
The company finished September with $97 million in cash after completing a $60 million institutional placement, contributing to approximately $175 million in available liquidity.
Medallion also recruited 35 personnel across operational, maintenance and technical roles during the quarter, supporting its transition towards gold production and underground mine development.
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