Medallion Metals Ltd (ASX:MM8) has ended the December quarter in a strong financial position, with $6.8 million in hand as it advances drilling at the Ravensthorpe Gold-Copper Project in Western Australia.
During the period, the company intersected multiple instances of high-grade gold and copper from extensional drilling at the Kundip Mining Centre (KMC).
Looking ahead, a global mineral resource estimate (MRE) is underway incorporating 30,000 metres of new drilling across the project.
Developments at KMC
Medallion continued to advance its aggressive extensional drill program at KMC during the quarter targeting depth and strike extensions of the known high-grade deposits at Gem (formerly Kaolin) and Harbour View in addition to near-mine prospects at Gem Restored and Gift North.
Both reverse circulation (RC) and diamond drilling have been undertaken on an approximate 40 x 40-metre pattern, extending to an 80 x 40-metre pattern at deposit extremities.
In combination with historical drilling, the expanded and enhanced dataset will support a global update of the MRE at KMC.
Meridian prospect
During the quarter, Medallion received results from a preliminary RC drill program conducted at the regional Meridian prospect, approximately 4 kilometres west of Ravensthorpe town
A total of 11 holes for 1,224 metres of drilling was carried out to test beneath historical workings and validate historical workings and drilling.
Notably, a substantial mineralised system was confirmed by first-pass drilling at the regional Meridian prospect, 21 kilometres northwest of KMC.
Ariel prospect
During the period, Medallion carried out t first pass bedrock drilling of the Ariel prospect 2 kilometres to the north of KMC.
A significant new gold discovery was confirmed at Ariel which returned a drill intersection of 26 metres at 1.6 g/t gold from the surface.
Medallion is undertaking a review of the results at Ariel with DHEM surveys and additional Phase 1 RC drilling scheduled this quarter.
Furthermore, the design of Phase 2 drilling has commenced, which will include additional aircore drilling to test geophysical anomalism along strike to the northwest of current drilling.
Placement summary
During the period, the company undertook a two-tranche placement to raise approximately $4.8 million before costs.
Canaccord Genuity (TSX:CF, LSE:CF) acted as sole lead manager and bookrunner to the placement with Argonaut acting as a co-manager.
Placement proceeds will be applied to the acceleration of exploration efforts and drill programs underway at the company’s projects, primarily Ravensthorpe.
NickelSearch IPO
During the quarter, Medallion concluded the divestment of the RAV8 Nickel Project and nickel rights over certain nickel tenure to NickelSearch Ltd (ASX:NIS).
The divestment was completed in October 2021 following NickelSearch’s successful $10 million Initial Public Offer (IPO) and the issue of 15,713,662 NickelSearch consideration shares to Medallion.
Medallion holds approximately 15.1% of the total NickelSearch shares on issue, with a market value of approximately $2.6 million at the end of the quarter.