Drilling at Medallion Metals’ Ravensthorpe gold project. Photo: Medallion Metals
A Ravensthorpe copper-gold mine could be a reality as soon as next year after Medallion Metals announced an extensive drilling program to finish proving up the resource.
Medallion managing director Paul Bennett said this should create 50-60 full time jobs at Ravensthorpe end and a further 40-50 at a processing plant at Forrestania near Hyden.
“After many years of pursing that objective it’s coming into sight,” Mr Barrett said.
“It will all hinge on how quickly it can progress or otherwise, through the system.
“The technical work is at the level which would support a development decision so probably the Federal approval is the key issue here.”
Mr Barrett said they were negotiating to take over IGO’s Cosmic Boy nickel processing plant at Forrestania.
“IGO are still winding down nickel production there,” he said.
“There is an agreement to bed down there, but there is also a lot of goodwill on both sides of the fence, so we need to negotiate that.
“They will transfer that project to care and maintenance over the next calendar year.
“We would look to make some modifications to the processing infrastructure there then look towards resuming production.”
Copper and Gold
Mr Barrett said they expected to produce two commodities, one of which could take up a little of the spare capacity expected at Esperance Port with the impending downturn in iron ore shipments.
“The project will produce a copper concentrate with precious metal credit; and gold silver doré bars which will go to Perth Mint,” he said.
“The copper concentrate will most likely be exported through the Port of Esperance.
“Our best estimate of the mass going out is 12-15,000 tonnes of concentrate per year.”
This could fill the holds of between one and two ships, depending on the size of the vessel.
Drilling is scheduled to start this month at Medallion’s Kundip tenements about 20km south east of Ravensthorpe.
“News will flow quickly with the first results expected to be reported early in the fourth calendar quarter and the pace of reporting accelerating as the second rig mobilises,” Mr Barrett said.
