TG Metals and Medallion Metals signed a non-binding deal to process ~60,000t of gold stockpiles from TG's Van Uden project, splitting profit equally after costs.
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TG Metals (ASX: TG6) has signed a non-binding agreement with Medallion Metals (ASX: MM8) to process roughly 60,000 tonnes of gold-bearing stockpiles from TG's Van Uden gold project. Medallion will handle transport and processing at its Cosmic Boy concentrator, located about 70 kilometres to the south.
Medallion will recover agreed operating costs from each campaign's processing revenues. The remaining pre-tax profit will be split equally between the two companies. Medallion will also make provisional payments after each batch, with a final reconciliation based on actual costs, metallurgical performance, and gold sale proceeds.
TG Metals chief executive David Selfe called the proposed deal a "significant first ore processing outcome" that would generate a revenue stream while the company explores further treatment options for Van Uden. "When stockpile deliveries commence, we will join the ranks of gold producers," Selfe said.
Medallion managing director Paul Bennett said the arrangement lets his company use spare capacity at Cosmic Boy while giving a neighbour a way to monetise its stockpiles. "Our focus remains on execution and cashflow by bringing the Ravensthorpe gold project into production," he said.
The Van Uden project sits along the Forrestania Greenstone Belt, about 12.5km southwest of the Mt Holland lithium mine. That mine is owned by the Covalent joint venture between Wesfarmers (ASX: WES) and Sociedad Química y Minera de Chile.
Van Uden's gold resource totals 7.93 million tonnes at 1.06 grams per tonne for 270,800 ounces. Fifty-six percent of that is in the Indicated category. A specific laterite portion holds 1.05Mt at 0.52g/t gold for 17,700oz.
TG is nearing completion on a Van Uden laterite heap leach study that aims to treat gold-bearing laterite and other material types on site. The company will start expansion drilling before year end, following a recent auger campaign that confirmed widespread near-surface laterite-hosted gold mineralisation.
Laterite resource growth could extend Van Uden's operating life and boost production capacity, TG said. The company also has additional reverse circulation drilling planned along strike and outside the current resource boundary.
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