Brought to you by BULLS N’ BEARS
Murray Ward
Emerging gold producer Forrestania Resources has delivered a trifecta of news from its WA gold operations, tabling a suite of high-grade drill hits that have underpinned a significant resource upgrade at its British Hill project, in addition to locking in a new separate ore purchase agreement to feed its soon-to-be-commissioned processing hub.
The company’s latest 19-hole, 4246-metre reverse-circulation drill program at British Hill, 75 kilometres south-southeast of Southern Cross in the revered Yilgarn Mineral Field, returned a thick, high-grade and remarkably shallow intersection of 16m assaying 5.77 grams per tonne (g/t) gold from just 12m downhole.
Other significant hits included an even richer intercept of 2m at 13.36g/t gold from 231m depth, alongside 9m grading 5.48g/t gold from 202m and 11m running at 4.19g/t gold from 210m.
The successful drill campaign has prompted Forrestania to upgrade the mineral resource estimate at British Hill by a whopping 35 per cent, taking it from 212,400 ounces to a new total of 5.7 million tonnes at 1.57g/t gold for a hefty 286,000 ounces.
‘Drilling is improving our understanding of the system and identifying opportunities for further resource growth.’
Forrestania Resources chairman David Geraghty
Gold mineralisation at British Hill is hosted within sheared and quartz-veined rocks in the prolific Southern Cross-Forrestania Greenstone Belt. The company has lodged additional Program of Work applications to chase mineralisation interpreted to exist west of the current drilling, with a diamond drilling campaign also planned to begin shortly.
Forrestania Resources executive chairman David Geraghty said: “Another demonstrably strong batch of results has reinforced our confidence in British Hill. High-grade mineralisation continues to be encountered across the deposit, while drilling is improving our understanding of the system and identifying opportunities for further resource growth. British Hill is increasingly demonstrating the attributes of a potentially valuable near-term gold development asset for Forrestania.”
Capping off a busy day on the market, Forrestania also announced it has shored up its feedstock by executing an ore purchase agreement with Dundas Minerals to treat up to 750,000 tonnes of ore over an initial 24-month period from Dundas’ Rockland gold project. The ore is likely to feed the Lake Johnson processing facility, which is slated for commissioning in early 2027.
The deal marks another key plank in the company’s now familiar “hub-and-spoke” strategy and follows a similar agreement for 400,000 tonnes of ore inked late last month with High-Tech Metals for its Mt Fisher gold project. These third-party deals also complement an earlier arrangement with Star Minerals for 400,000 tonnes of ore from its Tumblegum deposit, all designed to feed Forrestania’s two central processing hubs at Edna May and Lake Johnston.
The company is already hauling ore from its Taipan deposit to Edna May, where dry commissioning is now underway ahead of a targeted first ore processing in December. The second hub at Lake Johnston is slated for commissioning in early 2027, with ore from the burgeoning British Hill deposit already stockpiled at site ahead of the plant’s restart.
Forrestania’s aggressive growth strategy has also been underscored by its takeover of Zenith Minerals. With 65.4 per cent of Zenith already tucked under its belt, the company appears to be firmly in the box seat as it hunts down the magic 90 per cent ownership mark needed to trigger compulsory acquisition.
The offer for Zenith will close at 5pm (AWST) on November 12. The company has ruled out any further extensions unless legally compelled under section 624(2) of the Corporations Act 2001, which provides for an automatic extension in certain circumstances, effectively putting the clock on Zenith shareholders still weighing up their options.
Taking control of Zenith will add another 675,000 ounces of gold to Forrestania’s inventory, bringing its global resource base to more than two million ounces.
The moves come as Australia’s Office of the Chief Economist forecasts national gold production to rise from 340 tonnes in 2025–26 to 359 tonnes in 2027–28, with high prices encouraging miners to maximise output. While the spot gold price has been volatile after hitting record highs earlier in the year, projects that can demonstrate persistent grade and a clear path to a processing plant are becoming increasingly relevant.
With Forrestania on the cusp of firing up its Edna May processing hub, a resource upgrade at a key satellite deposit and another ore deal to bolster feedstock, the company looks to be systematically assembling the pieces of a significant WA gold production business. If the drill bit continues to deliver, it may not be long before British Hill adds even more ounces to a burgeoning production pipeline.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
From our partners
About the Author
