Medallion Metals Advances Gold-Copper Production at Ravensthorpe Project

Major Capital Raising Positions MM8 for Production Leap

Medallion Metals (ASX:MM8) has secured $27.5 million through a strongly supported institutional placement, providing a significant vote of confidence in the company's strategy to rapidly advance its Ravensthorpe Gold Project (RGP) using Forrestania processing infrastructure.

"Medallion emerges from this capital raising in an extremely strong position to accelerate the sulphide development strategy. The Board has confidence that tremendous value can be unlocked for Medallion shareholders by bringing Ravensthorpe resources together with the Forrestania infrastructure."

The placement, which received robust backing from high-quality Australian, European, and US-based resource-focused institutions, will fund:

• De-risking and accelerating the proposed acquisition of the Forrestania Nickel Operation (FNO)
• Pre-development activities at Ravensthorpe
• General working capital to maintain operational flexibility

Post-completion, Medallion will be well-funded with approximately $31 million in cash (net of capital raising costs) to execute its Medallion Metals gold-copper production strategy.

Compelling Economics Drive Rapid Development Strategy

The company's December 2024 Scoping Study demonstrated compelling economics for processing Ravensthorpe gold-copper ore through Forrestania's infrastructure. Other junior miners have also been achieving success with their high-grade gold discoveries at Fortitude North, showing that the sector remains vibrant.

The initial production inventory stands at 2.7Mt @ 3.9 g/t Au & 0.6% Cu for 342,000 ounces of gold and 16,000 tonnes of copper contained, with projected recoveries of 98% for gold and 80% for copper.

What makes this opportunity particularly attractive is the modest upfront capital requirement of just $73 million, covering mine establishment and process plant modifications. This capital-efficient pathway leverages existing infrastructure to accelerate Medallion Metals' gold-copper production and maximise returns.

Understanding Flotation Processing: Key to Unlocking Value

Medallion's strategy hinges on a critical technical concept worth understanding: sulphide flotation processing.

Flotation Processing Explained:
Flotation is a mineral processing technique that separates valuable minerals from ore by exploiting differences in their surface properties. In Medallion's case, the Cosmic Boy Flotation Plant at Forrestania is well-suited for processing the gold-copper sulphide mineralisation at Ravensthorpe.

The process works by:

1. Crushing and grinding ore to liberate mineral particles
2. Adding reagents that make specific minerals water-repellent
3. Introducing air bubbles that attach to these water-repellent minerals
4. Collecting the mineral-laden bubbles as a concentrated product

For investors, this matters because:

• It enables high recoveries (98% gold, 80% copper)
• The existing plant significantly reduces capital expenditure
• It creates multiple revenue streams from both gold and copper production
• The established gravity-flotation-CIL process route has proven success at similar operations like Deflector

Clear Pathway to Development

With the capital raising secured, Medallion has outlined a structured pathway to production. Meanwhile, other explorers like Austin Metals have begun drilling near top producers as the sector heats up.

1. Near-Term (Q2-Q3 2025):

   • Complete 17,000-metre infill and extensional drilling program (May 2025)
   • Release ongoing drilling results (June-July 2025)
   • Update Mineral Resource Estimate
   • Provide updates on FNO acquisition and permitting

2. Medium-Term:

   • Complete Bankable Feasibility Study
   • Advance permitting activities
   • Potentially compress development timelines by securing long-lead items

3. Target Milestones:

   • Final Investment Decision (FID) targeted for Q4 2025
   • Potential production commencement following positive FID

The company is now positioned to accelerate development activities while remaining flexible to optimise timelines as the FNO acquisition progresses.

Investment Thesis: Multiple Value Drivers

Medallion presents a compelling investment case based on several key factors:

1. Capital-Efficient Production Path

The proposed acquisition of Forrestania's processing infrastructure provides a capital-light route to production, requiring just $73 million in pre-production capital versus the hundreds of millions typically needed for greenfield developments. Some operations are even exploring early gold production opportunities from stockpiles to generate cash flow.

2. Strong Resource Base with Growth Potential

The current fresh component resource stands at 5.62Mt @ 4.3 g/t Au and 0.6% Cu for 770,000 ounces of gold and 36,000 tonnes of copper. Importantly, 71% of this resource is in the higher-confidence Indicated category.

3. Rapid Payback & Strong Returns

With a projected payback period of just 12 months under base case assumptions (and 9 months in the upside scenario), investors can expect rapid return of capital and strong ongoing cash flows averaging $90 million per annum. The sector is seeing similar momentum with major gold-copper discoveries in North Queensland adding to the potential for regional development.

4. Strategic Regional Consolidation

The Forrestania acquisition opens up strategic opportunities beyond Ravensthorpe. The Forrestania greenstone belt has historical production of approximately 1.4 million ounces of gold at 5.1 g/t from the Bounty Gold Mine, with multiple deposits within trucking distance of the processing facility.

Why Investors Should Watch Medallion Metals

Medallion offers a rare combination of attributes that position it favourably in the Australian gold sector:

1. Near-term production potential with a clear pathway to development
2. High-grade resource with attractive economics (4.3 g/t gold with copper credits)
3. Capital efficiency through the strategic acquisition of existing infrastructure
4. Dual commodity exposure to both gold and copper
5. Strong institutional backing with the recent $27.5 million placement
6. Experienced management team executing a clear vision
7. Regional consolidation potential through the Forrestania acquisition

With a Final Investment Decision targeted for Q4 2025 and a steady stream of catalysts expected throughout 2025, including drilling results, resource updates, and milestone announcements on the Forrestania acquisition, Medallion Metals' gold-copper production strategy represents a compelling opportunity for investors seeking exposure to an emerging Australian gold-copper producer with strong economics and significant growth potential. This comes at a time when companies like Vital Metals secure funding for rare earths, showing the broader strength in the resources sector.

"Medallion Metals has secured the financial backing to accelerate its unique gold-copper production strategy, combining high-grade resources with existing infrastructure to create a capital-efficient path to production. With strong projected economics including a 12-month payback period and robust institutional support, MM8 presents a compelling investment case ahead of its targeted Final Investment Decision in Q4 2025."

Interested in Identifying the Next Major Gold-Copper Producer?

Discover how Medallion Metals' impressive capital raising and compelling economics compare with other significant ASX mineral discoveries by exploring Discovery Alert's dedicated discoveries page at https://discoveryalert.com.au/discoveries/, where the proprietary Discovery IQ model helps investors identify high-potential opportunities before the broader market.