Forrestania Resources releases robust Johnson Range PFS and ore reserve

• Probable Ore reserve of 308kt at 2.88 g/t Au for 28.5k ounces
• Estimated pre-tax undiscounted free cash flow of $60.1M
• Mining is scheduled over approximately 11 months
• Ore planned to be hauled approximately 236km by road to Forrestania’s Edna May processing facility

Forrestania Resources (ASX: FRS) has reached a major milestone with the release of a robust pre-feasibility study (PFS) for the Johnson Range project in Western Australia.

The PFS have demonstrates a near-term, high-grade gold production opportunity strategically located to leverage Forrestania’s Edna May processing infrastructure.

The PFS demonstrates a short-life, near-term development opportunity, with the production target fully underpinned by probable ore reserves of 308,000 tonnes at 2.88 grams per tonne (g/t) for 28.5k ounces.

Approximately 25% of contained gold ounces in the Johnson Range mineral resource estimate (MRE) are classified as indicated of 2.04 million tonnes (Mt) at 1.99 g/t for 131,000 ounces.

“The Johnson Range ore reserve advances Forrestania’s strategy of building near-term gold production opportunities around the Edna May processing hub,” chairman David Geraghty said.

“Johnson Range benefits from granted mining tenure, access to established regional infrastructure and the existing Edna May processing facility, providing a clear and capital-efficient pathway toward development.

“Importantly, the current production target and financial evaluation are fully underpinned by ore reserves, while additional Inferred Mineral Resources within the current pit design, provide further potential for resource conversion and mine life extension through future drilling and technical work which is ongoing.”

Studies have identified an average metallurgical recovery of approximately 92%, while a gold price of approximately A$6,140/oz provides an estimated pre-tax, undiscounted free cash flow increases to $76.8 million, with average AISC of $2,924/oz.

The project’s stage 1 pit is substantially advanced toward execution, with the Mining Proposal, Mine Closure Plan and groundwater licence in place and the remaining Native Vegetation Clearing Permit under assessment.

Key contracts are also in place for mining, road haulage and the Edna May tailings storage facility lift

Johnson Range is located approximately 170 km north of Southern Cross within the Yilgarn region of WA and comprises a compact package of granted mining and supporting tenure covering approximately six sq. km.

FRS was down 6.94% to 33.5¢. Mkt cap $867.2M.

Join the discussion: See what HotCopper users are saying about Forrestania Resources now and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.