Medallion Metals Ltd (ASX:MM8) has made strong progress with a drill program at its flagship Ravensthorpe Gold Project (RGP) in southern Western Australia and is on track to be completed by the end of the year.
With the results received to date, the company is even more positive that it is “well on our way to achieving our goal of 1 million gold ounces at RGP”.
In addition to ongoing drilling, the company has commenced work on a mineral resource estimate (MRE) for the Gem Restored Deposit, which it expects to report in October 2021.
Medallion anticipates reporting a project-wide MRE update for RGP during the March quarter of 2022.
RGP drill program
Medallion commenced a combined reverse circulation (RC) and diamond (DDH) drill program totalling 32,000 metres during the year.
A total of around 11,300 metres of drilling has been completed, with the program on target to be completed by the end of 2021.
Of the planned 32,000 metres of drilling, about 26,000 metres will be undertaken at the Kundip Mining Centre (KMC).
The drilling is targeting depth and strike extensions of the known high-grade deposits at Kaolin, Harbour View and Flag, in addition to near-mine prospects at Gem Restored and Gift.
Gem Restored Prospect
The RGP drill program kicked off at the northern end of KMC, at the Gem Restored Prospect, immediately north of the deposits, which host the current high-grade 674,000 ounces gold MRE.
Phase 1 drilling successfully tested strike, dip and plunge extensions of the Gem Restored Main Lode and has so far identified a continuous zone of mineralisation up to 12 metres wide, around 500 metres along strike and to a current depth of 150 metres below surface, with mineralisation remaining open at depth and along strike.
Drilling has also intersected what is interpreted to be a new parallel lode about 30 metres in the footwall of the Main Lode that extends from the historical workings, northwest for about 250 metres, and is also open at depth and along strike. This new structure is referred to as the Northern Lode.
During and subsequent to the end of the financial year, Medallion has reported strong results from the Phase 1 drilling at Gem Restored.
All drilling reported from Gem Restored is outside the current MRE.
The Gem Restored MRE is expected to be a strong contributor to reaching the targeted 1 million gold ounces at RGP.
NickelSearch shares distribution?
During the year, Medallion entered into an agreement to divest some interests in nickel prospective ground within its tenement portfolio to NickelSearch Limited, formerly Australasian Mining limited (AML).
Under the transaction, which involves the outright sale of some mineral tenements and the grant of nickel, cobalt and PGM rights over tenure co-incident with the Bandalup Ultramafics, Medallion will receive 15,713,662 NickelSearch shares.
NickelSearch plans to list on the ASX before the end of 2021, and the IPO shares, priced at $0.20 per share, values Medallion’s shareholding at $3.14 million on a pro-forma basis.
Medallion is considering allocating NickelSearch shares to its shareholders via an in-specie distribution at the completion of any ASX-imposed escrow period and subject to any regulatory approvals.
Jerdacuttup Project
During the year, Medallion mandated Argonaut Capital Limited (LSE:CAPD, FRA:C8D) to act as financial advisor to a potential transaction that would enable a more aggressive advancement of the Jerdacuttup Project.
A review of the optimal pathway to maximising the value of the Jerdacuttup Project for Medallion shareholders is ongoing.
The Jerdacuttup Project, about 9 kilometres south of KMC, is host to the Trilogy Deposit, which contains a JORC 2012 MRE of 162,000 ounces gold, 9.7 million ounces silver, 66,000 tonnes copper, 133,000 tonnes lead and 77,000 tonnes zinc.
A total of 336 metres of RC drilling was completed during the year at the Tripod/Theo prospect immediately north of the Trilogy deposit.
All drill holes intersected the graphitic shales with no sulphide mineralisation identified.
Ravensthorpe Camp
Ravensthorpe Camp, Medallion’s 89-person worker accommodation village in the regional centre of Ravensthorpe, about 17 kilometres from KMC was re-activated in March 2021 to house Medallion employees and contractors during the 2021 exploration program.
In addition to housing Medallion’s employees and contractors, the camp is also providing accommodation services to third-party businesses operating in the Ravensthorpe region.
Since its opening in March 2021, the camp has generated revenue of around $500,000 for accommodation services provided during the year and the company expects strong demand to continue for accommodation services at the camp for the foreseeable future.