Medallion Metals has generated strong interest from offtake partners as it explores the development of its Ravensthorpe gold project (RGP).
Potential offtake partners looking to secure copper-gold concentrate have offered up to $50 million in proposed facilities.
Ravensthorpe holds great potential with copper grades of up to 20 per cent and gold grades of approximately 30 to 40 grams per tonne, free of deleterious elements.
“The strong level of interest from potential offtake partners is further endorsement of the company’s sulphide development strategy,” Medallion Metals managing director Paul Bennett said.
“Not only does copper enhance the project’s already attractive economics, the demand for concentrate product potentially provides access to a funding source capable of establishing the foundation capital piece.”
Following the level of interest in Ravensthorpe, Medallion has open the door to formal proposals, with 13 parties throwing their hat in the ring. Seven of these include development funding linked to offtake.
In August 2024, Medallion entered into an exclusivity agreement with IGO to explore a proposed acquisition of IGO’s Forrestania nickel operation.
If this does come to fruition, Medallion plans to process Ravensthorpe ore through Forrestania’s Cosmic Boy processing plant. This would produce a copper-gold concentrate for sale.
A scoping study determined that processing Ravensthorpe ore through the Cosmic Boy plant would generate $637 million of pre-tax cashflow over an initial 5.5-year mine life.
Medallion sees the project requiring $73 million of pre-production capital to support the desired processing operation.
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