• Medallion Metals hits potential polymetallic feed at the Trilogy deposit
• Potential uplift to scoping study and development plans
• Processing plant negotiations remain on course ahead of resource upgrade and bankable feasibility

Special Report: Medallion Metals has struck broad zones of high-grade polymetallic mineralisation and a potential production enhancer to its Ravensthorpe-Forrestania gold-copper ambitions.

Drilling confirmed mineralisation in a fresh portion of the Trilogy deposit within Medallion Metals (ASX:MM8) Jerdacuttup project 9km south of its tentpole 1.49moz gold equivalent resource at the Kundip Mining Centre.

Assays were headlined by a 26.8m at 7.4% CuEq strike from 90.7m and ore from the deposit has already proven amenable for flotation as a weighty growth option for plans to acquire and process at IGO’s Cosmic Boy flotation plant at Forrestania.

A key driver of upside to a 2024 scoping study evaluating underground mining at Kundip and processing at Forrestania, was the integration of Trilogy, which could potentially uplift scale, mine life and returns for a development already attracting plenty of interest.

Recent drill results returning high-grade intercepts in the footwall of the sulphide zones at Trilogy could also support a direct-shipping strategy and a near-term cash flow opportunity.

Either way, managing director Paul Bennett said that Trilogy had the potential to be a genuine growth option for Medallion.

“These assay results confirm the presence of broad, high-grade and potentially high value mineralisation within the fresh component of the deposit, the domain best suited for treatment at Forrestania,” Bennett said.

“Subject to demonstrating good recoveries and commercial pathways, Trilogy could provide a meaningful addition to the production profile and enhance the returns of the Sulphide Production Strategy.”

Significant new intercepts include:

• 26.8m at 2.0% Cu, 0.8g/t Au, 78.3g/t Ag, 5.3% Pb, 3.9% Zn (7.4% CuEq) from 90.7m, inc. 5.0m at 3.2% Cu, 1.2g/t Au, 141.8g/t Ag, 9.8% Pb, 4.4% Zn (11.3% CuEq) from 110m;
• 15.5m at 0.6% Cu, 0.2g/t Au, 69.0g/t Ag, 3.2% Pb, 1.7% Zn (3.5% CuEq) from 64.6m;
• 13.6m at 0.6% Cu, 0.1g/t Au, 100.9g/t Ag, 9.8% Pb, 3.8% Zn (7.4% CuEq) from 95.5m, inc. 3.0m at 1.7% Cu, 0.1g/t Au, 239g/t Ag, 18.0% Pb, 5.8% Zn (14.1% CuEq) from 103.5m; and
• 23.8m at 1.3% Cu, 1.5g/t Au, 14.7g/t Ag, 0.5% Pb, 0.5% Zn (2.8% CuEq) from 116.8m.

Plans for production

A combination of record prices and a weak junior market led eminent gold bug Hedley Widdup to drop a significant chunk of change into Medallion, believing a repurposed plant from IGO’s mothballed nickel operation could be a fast and cheap route to production.

Beyond MM8’s own collection, Lowell Resources Fund (ASX:LRT) chief investment officer John Forwood also told Stockhead there was potentially up to 600koz of third party gold looking for a home, and that Medallion holds a key infrastructure advantage.

The greater Ravensthorpe gold project is expected to produce a high value and readily saleable concentrate grading between 19-20% Cu and around 30-40g/t Au with no undesired elements.

Medallion said indicative offtake terms had been above those modelled in last year’s scoping study, and that some proposals had come with offers for development.

Trilogy is now being looked at to further enhance that study and is already host to a substantial 162koz JORC estimate.

A metallurgy program specific to the deposit’s Cu-Au and Pb-Zn-Ag dominant zones is expected to begin mid-year, with sample mass also provided to those interested in direct shipping ore.

Medallion is also awaiting assay from around 5300m of drilling ahead of a resource update for three deposits, set to form the basis of a bankable feasibility study expected for October.

The company also expects to wrap up acquisition of the Forrestania processing plant by the current May end of the exclusivity agreement, but the terms are extendable by another three months if more negotiations are required.

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.