Medallion Metals Discovers Promising Sulphide Mineralisation at Trilogy Deposit
MEDALLION METALS LIMITED. (MM8) Share Update January 2025 Wednesday 15th
Medallion Metals Intersects Significant Sulphides at Trilogy Deposit
Medallion Metals Limited (ASX: MM8) has announced promising results from its recent diamond drilling program at the Trilogy Deposit, revealing significant sulphide mineralisation that could enhance the company's growth prospects.
Instant Summary:
- Significant sulphides intersected in the first drill hole of a three-hole program.
- 22m continuous interval of semi-massive to massive sulphides from 95m downhole.
- Metallurgical testwork planned to assess commercialisation potential.
- Assays expected by March and April 2025.
Drilling Results
Medallion Metals Limited has reported significant sulphide mineralisation in its diamond drilling at the Trilogy Deposit, located approximately 9 kilometers south of the Kundip Mining Centre. The first drill hole, DD24MY246, intersected a 22-meter continuous interval of semi-massive to massive sulphides, starting from approximately 95 meters downhole. This discovery is part of a three-hole drilling program aimed at collecting samples for metallurgical assessment.
The drilling targets the fresh portions of the Trilogy Deposit's copper-gold (Cu-Au) and zinc-lead-silver (Zn-Pb-Ag) dominant lodes. The intersected sulphides include pyrite, chalcopyrite, and galena, with visual logging indicating a promising mineralisation profile.
Potential for Commercialisation
The company plans to conduct metallurgical testwork to explore the potential for commercialising the Trilogy Deposit. This could involve utilising the established Forrestania processing infrastructure or directly shipping high-grade portions of the deposit. The assays from the drilling program are expected to be received by March and April 2025, which will provide further insights into the deposit's commercial viability.
Managing Director Paul Bennett expressed optimism, noting that the Forrestania infrastructure's flotation capacity offers a significant opportunity to realise value from Trilogy. The focus is on the shallow, high-grade parts of the deposit, which could yield saleable products and present a growth opportunity for the company and its shareholders.
Strategic Importance
The Trilogy Deposit is part of the broader Jerdacuttup Project, a strategically held tenement group spanning approximately 400 square kilometers. It is believed to be prospective for base and precious metals mineralisation, making it a key component of Medallion's exploration strategy. The deposit hosts a substantial JORC 2012 Mineral Resource Estimate, including significant quantities of gold, silver, copper, lead, and zinc.
The discovery of significant sulphide mineralisation at the Trilogy Deposit is a positive development for Medallion Metals. It could enhance the company's resource base and provide opportunities for commercialisation, potentially boosting investor confidence and impacting the company's stock positively. The assays and subsequent metallurgical testwork will be critical in determining the deposit's economic viability.
Investor Reaction:
Analysts are likely to view the discovery as a promising development for Medallion Metals, given the potential for commercialisation and the strategic importance of the Trilogy Deposit. However, they will await assay results and further testwork to assess the full impact on the company's valuation.
Conclusion:
Investors should keep an eye on the upcoming assay results and metallurgical testwork, which will provide crucial insights into the Trilogy Deposit's potential. Medallion Metals' ability to leverage the Forrestania infrastructure could be a game-changer, offering a significant growth opportunity for the company.