Nov 20, 2024

Medallion Metals Hits 26m @ 3.4g/t Au at Gem Deposit, Kundip Mining Centre, Western Australia

Introduction:

Medallion Metals Limited (ASX:MM8) (Market Cap: $33M | Last Close: $0.08 | Cash: ~$3.9M) has reported significant gold-copper-silver intercepts from in-fill drilling at its Gem deposit within the Kundip Mining Centre in Western Australia, highlighted by 26m @ 3.4g/t Au, 0.2% Cu, 3.7g/t Ag (3.7g/t AuEq) from 145m.

Drill Results:

26m @ 3.4g/t Au, 0.2% Cu, 3.7g/t Ag (3.7g/t AuEq) from 145m (including 4m @ 15.6g/t Au, 0.7% Cu, 12.2g/t Ag from 156m) (RC24KP1205A)
7m @ 4.8g/t Au, 0.2% Cu, 0.8g/t Ag (5.1g/t AuEq) from 236m (RC24KP1205A)
12m @ 3.4g/t Au, 0.3% Cu, 2.3g/t Ag (3.9g/t AuEq) from 168m (including 5m @ 7.4g/t Au, 0.6% Cu, 4.5g/t Ag from 174m) (RC24KP1194)‍
7m @ 4.0g/t Au, 0.2% Cu, 1.8g/t Ag (4.3g/t AuEq) from 189m (including 4m @ 6.6g/t Au, 0.3% Cu, 2.6g/t Ag from 189m) (RC24KP1194)

Project Overview:

The Gem deposit is part of the Kundip Mining Centre within Medallion's flagship Ravensthorpe Gold Project (RGP), located 550km south-east of Perth in Western Australia. The RGP hosts a global Mineral Resource Estimate of 1.46 Moz AuEq @ 2.5 g/t AuEq.

Medallion is currently advancing a 15,000 metre drill program to grow the high-grade sulphide underground resource at the Kundip Mining Centre in terms of both size and confidence. The program is part of the company's near-term Ravensthorpe-Forrestania sulphide development strategy.

Program Details:

The reported results come from the first 876 metres of a planned 15,000 metre drill program. Approximately 7,500 metres of RC drilling had been completed at the time of the announcement. The program is targeting inferred material interpreted from step-out drilling completed in 2022. Mineralization consists of quartz-sulphide (pyrite-chalcopyrite) veins, consistent with previous drilling.

Understanding These Results:

The in-fill drilling has confirmed the structure and grade continuity of the Gem lode. Results have consistently intercepted the deposit at interpreted positions, which is encouraging for future mine planning and execution.

Two drill holes in particular (RC24KP1194 and RC24KP1205A) have outperformed the geological model in terms of grade and thickness. These holes also intercepted previously unmodelled lodes in the hangingwall and footwall, illustrating upside potential for the Gem deposit.

Management Commentary:

Managing Director, Paul Bennett, stated:

“It’s great to be drilling again and demonstrating the potential of Kundip. These are extremely positive results to encounter first up. Not only are we confirming the grade and continuity of the deposit which is the principal aim of the in-fill program, but we are also likely increasing the resource and demonstrating the potential upside from high grade hits outside the modelled lodes. The lodes are visible in the chips and core and we expect a lot more good news to flow from this program which has just started reporting results.”

Next Steps & Catalysts:

Medallion anticipates completing the 15,000 metre drill program early in calendar year 2025. Results will inform an updated underground Mineral Resource Estimate, expected to be released in the first half of 2025.

The company is advancing several work streams in parallel to minimize the timeframe to reach a Final Investment Decision (FID) on its near-term Ravensthorpe-Forrestania sulphide development strategy. These include resource conversion, ongoing technical studies, environmental permitting, and progressing the potential acquisition of the Cosmic Boy Processing Plant from IGO Ltd.

Commodity Outlook:

Gold serves multiple markets, including investment assets, central bank reserves, jewellery manufacturing and industrial applications in electronics. Currently trading at US$2,612/oz (November 19, 2024), the metal has experienced record highs in 2024 despite recent volatility linked to U.S. political shifts and Federal Reserve policy expectations.

Gold and copper continue to be strategic metals with strong long-term fundamentals. The Ravensthorpe region of Western Australia represents a premier mining jurisdiction with established infrastructure and a supportive regulatory environment for resource development.

Conclusion:

The latest results from the Gem deposit demonstrate potential to expand the current resource base at the Kundip Mining Centre. With mineralization remaining open and multiple targets still to be tested, the project continues to show characteristics of a high-quality gold-copper system with growth potential to support Medallion's development strategy.

Sources:

MM8 Drill Results Announcement

Additional Figures:

Australia

ASX

Gold

Nov 4, 2024