TG Metals and Medallion Metals Sign Ore Processing Agreement for Van Uden Gold Stockpiles

TG Metals (ASX: TG6) has signed a non-binding agreement with Medallion Metals (ASX: MM8) for the processing of approximately 60,000 tonnes of gold-bearing stockpiles from TG’s Van Uden gold project through Medallion's Cosmic Boy concentrator, located approximately 70 kilometres to the south.

Under the terms, Medallion will be responsible for transporting and processing the stockpiles in staged campaigns while TG will manage applicable royalties and ensure statutory approvals to remove the stockpiles remain active.

Medallion will recover agreed operating costs—including recovering, transporting and processing the stockpiles—from the processing revenues of each campaign, with the remaining pre-tax operating profit shared equally by both companies.

Medallion will also make provisional payments following completion of each processing batch, with a final reconciliation undertaken using actual operating costs, metallurgical performance, and gold sale proceeds to determine final payment.

Gold and Laterite Resource

The Van Uden project is located along the Forrestania Greenstone Belt, approximately 12.5km to the south-west of the Mt Holland lithium mine owned by the Covalent joint venture between Wesfarmers (ASX: WES) and Sociedad Química y Minera de Chile.

Van Uden’s gold mineral resource estimate totals 7.93 million tonnes at 1.06 grams per tonne for 270,800 ounces, with 56% in the Indicated category and a specific laterite portion of 1.05Mt at 0.52g/t gold for 17,700oz.

TG Metals chief executive officer David Selfe said the proposed agreement was a significant first ore processing outcome that would provide the company with a revenue stream while it continues with further treatment options for Van Uden.

“When stockpile deliveries commence, we will join the ranks of gold producers and we intend to expand on this initiative with further processing options onsite and offsite,” he said.

Medallion managing director Paul Bennett said the arrangement would allow the company to utilise available capacity at Cosmic Boy while providing a neighbouring explorer with a pathway to monetise its gold stockpiles.

“Our focus remains on execution and cashflow by bringing the Ravensthorpe gold project into production, and we will continue to pursue commercial opportunities that are accretive for our shareholders," he added.

Heap Leach Study

TG Metals is nearing completion on a Van Uden laterite heap leach study that aims to provide onsite treatment of gold-bearing laterite and other material types.

The company will commence expansion drilling before year end to follow-up on a recent laterite auger drill test campaign that confirmed widespread near-surface laterite-hosted gold mineralisation within previously identified soil anomalies.

Laterite resource growth has the potential to deliver significant increases to TG’s cashflow generation by extending Van Uden’s operating life and increasing production capacity.

TG has additional reverse circulation drilling planned along strike and outside of the current Van Uden resource.