Medallion Metals Limited says Macmahon Underground Pty Ltd, a wholly owned subsidiary of Macmahon Holdings Limited, has been selected as the preferred tenderer ahead of the award of the underground mining contract for the Ravensthorpe gold project (RGP), in Western Australia.
The scope of works associated with the RGP underground mining contract includes portal establishment, primary development, production and ancillary works. Subject to agreement and execution of the contract, works are expected to commence in the December quarter of this year and span a period of 36 months, with an estimated contract value of approximately A$240 million ($169 million). This compares favourably with the RGP feasibility study assumptions where the same package of works generated a contractor claim of approximately A$260 million.
Medallion anticipates an initial production rate of 75,000 oz/y at Ravensthorpe.
Medallion Managing Director, Paul Bennett, said: “Macmahon brings significant underground mining capability and experience, and we believe they are best placed to safely and efficiently deliver the mine plan at Ravensthorpe which is key to the success of the business. Macmahon’s competitive pricing, flexibility and recognition of the unique attributes of the Ravensthorpe development were the determining factors for our preferred tenderer selection.
“We look forward to finalisation of contract documents and mobilisation to site for the commencement of underground mining at Ravensthorpe. This is an excellent outcome for the project and, together with development activities now underway, provides further confidence in our development plan as we progress towards production.”
With all necessary approvals in place, mine development at the Kundip Mining Centre (KMC) is underway, with multiple workstreams progressing across the project area. Refurbishment and upgrades to the existing 100-person accommodation camp in Ravensthorpe, including the relocation of new rooms which are surplus to requirements at the Cosmic Boy camp has commenced. Award of additional key contracts for Ravensthorpe including power supply, bulk earthworks and surface infrastructure installation is imminent with those contract teams expected to mobilise to site prior to the end of August 2026.
Michael Finnegan, Managing Director and CEO of Macmahon, said: “We are aligned with Medallion’s ambition for Ravensthorpe and are committed to working collaboratively to deliver safe, productive and sustainable outcomes for all stakeholders. The development of Ravensthorpe represents an exciting opportunity not only for Medallion and Macmahon, but also for the local communities that will support the project.”
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