Medallion Metals fires up the rigs for stage 2 drilling at Ravensthorpe Kundip gold project

Tue 27 Sep 22, 12:23pm (AEST)
A collection of gold nuggets against a black background with one specimen in the foreground
Source: iStock

Key Points

  • After a brief delay following stage one drilling, the company has fired up two drill rigs on-site again
  • The 10,000m drilling program shared between an RC and diamond drill rig to be complete before year’s end
  • Resource upgrade expected in November with 13,000m of drilling results to be added in; assays for a further 5,000m pending

Medallion Metals (ASX:MM8) has recommenced drilling at its Ravensthorpe Gold Project in WA, with a diamond drill rig and an RC drill rig now both working away at key targets on the acreage. 

This new drilling program is planned to collect 10,000m of core. At this current time, assay results for a completed 5,000m of drilling remain pending for delivery back to the company. 

That isn’t the only assay data Medallion has under its belt. The company is also processing another batch of 13,000m worth of samples already received towards a resource upgrade scheduled for publication in November this year. 

Upgrade to an already large 1.3Moz resource

Shareholders will know the company already upgraded its resource in June this year by 79%, in terms of recoverable material.

That resource upgrade was attached to discoveries in the Kundip Mining Centre, part of the Ravensthorpe project—namely, from the Gem and Harbour View deposits.

A third target, called Flag, is interpreted to connect with the Harbour View lode underground. Further drilling with confirm or reject that thesis. 

Targets around Kundip are now the focus of the company's attention with the drilling campaign commencing this week.

Kundip already boasts a resource of 1.37Moz of gold equivalent—in other words, a combination of recoverable gold and silver. Worth considering is silver’s emerging role as a battery metal. 

Over 55 million ounces of silver are used in electrical connections found in EVs each year

Silver is the most conductive metal on earth, and seeks to mine the metal for its inclusion in solar panels, as well as other EV components. Like copper and nickel, EV batteries require a high count of basic materials which are often overlooked in favour of the more attention-grabbing lithium and graphite. 

Regardless of Medallion’s ability to penetrate EV supply chains down the line, the 1.3Moz resource is already significant as is. 

Exciting times: management 

“It’s an exciting time for the company and its shareholders with drilling underway once again at Kundip,” Medallion MD Paul Bennett said. 

“We are well prepared for the next phase of growth at Kundip…Medallion has momentum with drill results pending, another resource upgrade due, and then the results from this upcoming work.”

“The previous round of drilling will continue to drive growth in mineral resources and just as importantly provides a platform from which to launch this round of aggressive drilling.” 

If you recognise the name—yes, that Paul Bennett. Bennett was formerly a director at IGO; remains a Chairman at S2 Resources (ASX:S2R), and is also the Chairman of Falcon Metals (ASX:FAL).

Rough waters: Medallion's six month charts show the impact a risk-off macro environment has had on the materials player
Rough waters: Medallion's six month charts show the impact a risk-off macro environment has had on the materials player


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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