Gem is the crowning jewel in Medallion’s regalia
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Medallion’s Gem deposit is proving worthy of its name, with drilling both extending and improving confidence in mineralised zones to the southeast and southwest.
Notable hits at the deposit located at the northern end of the Kundip Mining Centre (KMC) within the greater Ravensthorpe Gold Project are:
Importantly for Medallion Metals (ASX:MM8), the mineralisation remains open along strike to the east, down-dip to the south and down-plunge to the southwest.
“These are further strong results from the two key areas at Gem that we view as having the greatest upside potential in terms of extending mineralisation,” managing director Paul Bennett.
“The results bolster the imminent resource upgrade and importantly provide confidence to follow up with an aggressive extensional programme before the middle of the year.
“Gem represents half of the current resource in terms of ounces. Seeing the mineralisation open in multiple directions gives the team confidence Gem can continue to underwrite our growth toward achieving critical mass of 1.5 million ounces and beyond.”
While the KMC currently hosts a resource of 674,000oz of gold at an average grade of 2.4g/t gold, the upcoming resource estimate update expected in April will include about 30,000m of new drilling.
The Gem deposit was the foundation of a 2020 feasibility study for KMC, contributing 54% of feed ounces to the mine plan from a low strip ratio open pit.
Potential strike and depth extensions are seen by the company as compelling opportunities to add high margin ounces to the mine plan with all ongoing drilling 2022 targeting areas outside the current resource envelope with particular focus on down-plunge extensions to the southwest of the historical Hillsborough workings and downdip extensions to the south of the historical Two Boys workings.
This is aimed at delineating the high-grade structural controls to mineralisation in these areas.
Medallion will also concurrently continue regional exploration including follow-up drilling at the Meridian and Ariel prospects.
This article was developed in collaboration with Medallion Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.