Ravensthorpe Gold Project

Project Highlights

  • JORC 2012 Mineral Resources of 8.8Mt @ 2.4g/t Au and 0.2% Cu for 674koz Au and 19.5kt Cu
  • 80% of Mineral Resources in the Indicated category
  • Probable Ore Reserve of 4.1Mt @ 2.1g/t Au for 270koz Au, update underway following recent resource upgrade
  • Positive DFS completed in June 2020 confirming viability of a 800ktpa CIP gold operation producing on average 61kozpa Au over a 5.5 year life of mine (LOM) with pre-production capital estimated at $84.5 million and AISC averaging $1,203/oz over the LOM
  • 337koz Au within the initial LOM (4.4Mt @ 2.4g/t, inclusive of Inferred material), peaking at an annualised rate of 80kozpa in year 3
  • Project resources open at depth and along strike
  • Numerous project life extension and production rate expansion opportunities from known deposits and advanced exploration targets

Location and Tenure

The Ravensthorpe Gold Project (RGP and the Project) is centred on the historic Kundip mining centre, located midway between the regional centres of Ravensthorpe and Hopetoun. RGP benefits from excellent infrastructure and is easily accessed by sealed roads with a sealed airstrip located 10km to the south of the Project. Situated at the intersection of the world class Southern Cross greenstone belt and the Albany Fraser Orogen, the Project area is located within a high-grade historical mining district with past production of >140koz Au @ 24.4g/t. RGP tenements extend over approximately 280 km2. The tenure that is the subject of Medallion’s development studies contains resources within five granted Mining Leases. Mining/Heritage Agreements are in place with the local indigenous groups, Wagyl Kaip and Southern Noongar peoples.

Kundip Deposits

The historic Kundip mining centre, which is the focus of RGP, consists of numerous mineralised structures which have sustained varying levels of exploration and mining activity over their history.

JORC 2012 Mineral Resources and Ore Reserves have been estimated at the Kaolin, Harbour View and Flag deposits. The estimates are the subject of the recently completed DFS into the technical and commercial viability of RGP. In addition to the DFS deposits, historical resource estimates were made at the Gem Restored and Gift South deposits by former owners which Medallion is in the process of upgrading to JORC compliance with a view to possible inclusion in the mine plan.

The deepest drill hole at Kundip extends to 300m below surface with less than 5% of the overall drill database being deeper than 200m below surface. The structures are open at depth and along strike. Projected intersections of the structures have been poorly tested and multiple examples of historical workings with no modern drill testing exist within the Project area.

Medallion is confident further drill testing of the Kundip deposits will yield increases to the resource inventory which in turn will lead to extensions to the mine life.

Definitive Feasibility Study (DFS)

In May 2020, Medallion in conjunction with its key independent consultants completed a DFS into the technical and commercial viability of RGP determining that Project generated extremely robust economic outcomes under base case assumptions. In addition, the proposed development of RGP presented an opportunity to establish and grow a significant gold mining and processing business with an attractive risk profile and clear potential to further enhance returns through the expansion of production rates and extensions to Project life.

RGP production and economic parameters from the DFS are summarised below.

Project Physicals   
ThroughputMt per annum0.8 
Project life (post construction)years5.5 
Processed orekt1,478 
Gold gradeg/t2.40 
Gold produced for salekoz320 
Economic Assumptions   
Gold priceUS$/oz1,4781,723
Silver priceUS$/oz1716
Exchange rateA$:US$0.680.65
Cash Flow   
Gross revenueA$ M693850
Royalties and refiningA$ M(18)(22)
Operating costsA$ M(293)(293)
Operating cash flowA$ M382535
Pre-production Capital   
- Processing plant and infrastructureA$ M(70)(70)
- Other pre-production capitalA$ M(14)(14)
Sustaining and other capitalA$ M(80)(80)
Pre-tax Net Cash FlowA$ M219372

Base case macro inputs are the average closing prices for the six months ending 31 December 2019. Spot macro inputs are the month to date closing prices as at 26 May 2020. 

The Project produces gold for sale at an average rate 59k ounces per annum over its 65 month operating life. Gold produced for sale peaks in years three and four of the Project life at 76k ounces per annum and 80k ounces per annum respectively.

Capital expenditure required to bring RGP to expected first gold production total approximately $84.5 million. AISC are modelled at A$1,203 per ounce of gold produced over the LOM.

The robust Project returns are a catalyst for further investment. Medallion is undertaking additional drilling at RGP to further bolster returns and enhance the investment thesis. The Company expects to update the DFS findings ahead of a Final Investment Decision expected in late 2021.

Regional Discovery

Medallion’s portfolio of regional exploration targets and prospects beyond the immediate Project area is extensive and encompasses around 70 historical workings. Several of these historical workings have been prioritised by Medallion in terms of potential resource and exploration targets depicted in the project pipeline below.

The “Wonderlust” area, located between the Kundip mining centre and Elverdton-Mount Desmond mining centres, is considered to have the greatest potential for additional near-mine mineral resources within 2 km to 5 km north of the proposed RGP development. The area has a strike length of approximately 7 km and is approximately 2 km wide, and currently contains numerous prospects at various stages of advancement. Of these, the Company considers the Ard Patrick and Ariel prospects have the greatest exploration potential based on previous exploration activities and similar north trending structures to mineralised lodes at Harbour View and Elverdton.


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