Medallion Metals Limited (ASX:MM8) has unveiled an Early Production Strategy (EPS) designed to generate cash flow from its Ravensthorpe project ahead of schedule. By repurposing existing processing infrastructure at the Forrestania Gold Project, the company plans to initiate gold processing operations in the fourth quarter of 2026. This move serves a dual purpose: accelerating the start of production and commissioning the Cosmic Boy Concentrator (CBC) facility well before it handles its primary ore stream in the second quarter of 2027.

The company will fund the implementation of this strategy, which requires an estimated $2.1 million in incremental capital, through its existing cash reserves. The capital expenditure includes a 25% contingency, and management expects to recover these costs rapidly once steady-state operations begin. The operational plan relies on a simplified processing circuit, with technical design support provided by GR Engineering Services. To facilitate the setup, Medallion is currently evaluating tenders for the construction and installation of a carbon-in-column (CIC) circuit at the site.

Central to this initiative is a new Toll Processing Agreement (TPA) with a third party, which secures at least 200,000 tonnes of material for treatment between September 2026 and May 2027. Under the terms of the deal, Medallion will earn a fixed fee of $100 per dry metric tonne, effectively insulating the company from variables like ore grade and metallurgical recovery rates during this initial phase. Third-party ore deliveries to the site’s run-of-mine pad are expected to commence in the coming days as part of the ramp-up.

"The Board's endorsement of the Early Production Strategy represents a significant milestone in Medallion's transition to gold production. By leveraging the existing infrastructure at Forrestania, the strategy has the potential to bring forward production and cashflow while de-risking the processing plant ahead of planned Ravensthorpe ore treatment." — Paul Bennett, Managing Director

The current timeline positions the company to begin processing operations in the fourth quarter, with steady-state production targeted for the same period. While this interim phase utilizes existing infrastructure and third-party supply, it remains distinct from the broader development plan for Ravensthorpe. By incorporating this strategy, the company aims to refine its operational processes using existing personnel, ensuring the site is better prepared for the larger-scale transition to gold, copper, and silver recovery scheduled for mid-2027. This phased approach allows the team to maintain the established development schedule while securing early value from the available processing capacity.

Read the full announcement: Medallion Accelerates Production at Forrestania