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NEWGENGOLD PREVIEW

Drilling is Northern Lode which remains open at depth and

along strike. Best hits included 1.5m @ 19.4 g/t
Medallion’s gold, 1.3% copper and 6.5 g/t silver from 225.9m
(including 0.7m @ 41.4 g/t gold from 226.2m) and
3.4m @ 8.9 g/t gold, 1.2% copper and 6.5 g/t silver
and 249m.
prize Medallion’s ongoing success with the drill bit comes
exactly 12 months after the company was forced to
shelve its initial plans to list on the ASX. Bennett and
his team took on the investor feedback about both
lowering the IPO amount and, more importantly,
coming to market with an exploration case rather
than a near-term development story.
“The market told us through the work that we did in
the lead-up to the IPO that 700,000oz in resource,
or 300,000-350,000oz in reserve, was not enough
and so we had to take on that feedback and reset
the strategy,” Bennett said.
“In some ways, it’s probably working to our
advantage because it’s not a fabulous time to be
building a project, given how much activity is going
by Michael Washbourne on in the sector at the moment. I think reverting to
that resource-building phase is certainly working to
our advantage at this point in time.”
edallion Metals Ltd has no intention of cruising into
Medallion’s goal now is to increase the resource to
Mresource estimation mode upon completion of the
somewhere in the order of 1.5 moz. Working backwards, if
current 32,000m drilling programme at its Ravensthorpe
some 50% of that amount is converted to reserve for the
gold project.
mine plan, the company would be looking at a potential
If managing director Paul Bennett gets his way, the drill rigs
production scenario of about 100,000 ozpa over 7-8 years.
will keep turning beyond the likely November finish date for
Until that mark is achieved, Medallion won’t be tempted
the extensive drill campaign which began about a month
to update the historic feasibility study which envisages
after the company made its debut on the ASX following a
average production of 61,000 ozpa over 5.5 years, peaking
$12.5 million IPO in March.
at 79,000oz in the third year. Capex was estimated at $84.5
At the time of print, more than half of the drilling targeted at
million with an AISC of $1,203/oz.
growing the 8.8mt @ 2.4 g/t gold for 674,000oz resource had
Medallion (known as ACH Minerals prior to its IPO) will
been completed. A maiden resource for the Gem Restored
also be able to draw on a significant bank of metallurgical
deposit, which sits outside the existing inventory, remains on
test work completed on the project which Bennett believes
track for October with a full project resource update due in
shares similarities to the Deflector gold-copper mine.
the first quarter of next year.
“We’ve announced to the market a number of visual
Bennett said his preference was to continue drilling other
intercepts…and you can see in the mineralogy there’s
prospective targets while the resource estimators did their
copper there, so we think that the process route of the
thing.
project will be much the same as Deflector,” Bennett said.
“We’ve got no shortage of targets,” he told GMJ. “We want “Essentially, you float the copper concentrate which has a
to keep that programme running and we want to keep the
significant precious metal credit and then you leach the float
team together which we’ve built up over the last six months. tail to make gold-silver dore.”
“Our preference will be seeing those levels of activity Medallion is also spinning out its nickel tenure into the
continued through. We’re not going to sit back and go into
upcoming IPO of NickelSearch Ltd which is raising $7-10
resource estimation mode until the first quarter of 2022. million ahead of a proposed listing in early October.
We’ll keep pushing on with the drills.”
Shareholders are expected to own as much as 17.6% of the
Recent drilling at Gem Restored confirmed both the position new company.
and extended the strike and plunge extent of the high-grade
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