Forrestania Resources (ASX: FRS) has engaged Perth-based Polaris Engineering to revamp a three-stage crushing circuit at its recently acquired Lake Johnston nickel processing facility in Western Australia.
The company expects the $5 million contract – which involves the refurbishment of all major equipment, piping, cabling, and instrumentation to process gold – to be completed within 25 weeks.
Completing the crushing circuit first allows Forrestania to utilise the existing Lake Johnston site accommodation and facilities and deliver the overall project in the most cost-effective manner.
The existing and proposed site layout allows the awarding of discrete packages in a timely and methodical manner, in line with current statutory approvals for the site.
The Polaris contract will be subject to a monthly payment structure in Forrestania scrip using a five-day volume weighted average price, allowing Forrestania to preserve its cash for other parts of the Lake Johnson conversion into a gold production hub.
Lake Johnston Acquisition
Forrestania acquired the Lake Johnston project – including the tenements, processing plant, buildings, and other infrastructure – from Horizon Minerals (ASX: HRZ) subsidiary Poseidon Nickel in December.
The company immediately commenced early contractor involvement for conversion of the processing facility from nickel to gold and continues to advance parallel workstreams across resource development, mine planning and operational readiness.
Chair David Geraghty said the company was moving quickly on the Lake Johnston conversion.
“Polaris has the experience to deliver a complete, ready-to-operate crushing circuit within approximately 25 weeks, which aligns with our broader development planning and underpins our transition from gold developer to gold producer,” he said.
“We control the processing facility, we are investing in the key recovery infrastructure, and we are executing with discipline and pace.”
Additional Engagements
Last week, Forrestania engaged Como Engineers for the supply of a ready-to-operate modular elution and carbon regeneration plant at Lake Johnston, inclusive of gold room equipment.
All major equipment, piping, cabling, instrumentation, and valves will be fully integrated within skid structures and then remain on the skids for hot run testing and pre-commissioning before being transported to site.
The $5.57 million contract is scheduled for completion within 30 weeks.
Other contractors involved in the conversion project include MBS Environmental (for environmental work packages and approvals), OTOC Australia (non-process infrastructure), RG Mining Consulting (study manager), and PwC Australia (cost modelling and financial analysis).
