GR Engineering Locks in $50M EPC Deal for Cosmic Boy Refurbishment
Key Takeaways
- Medallion Metals has executed a $50 million lump sum EPC contract with GR Engineering Services for the Cosmic Boy Concentrator refurbishment — within $1 million of the $49 million Feasibility Study estimate.
- The lump sum structure transfers cost overrun risk to GR Engineering Services, providing Medallion shareholders with fixed-cost certainty through to commissioning.
- Concrete pouring is expected to begin the first week of September 2026, with processing commencement on third-party ore targeted for early October 2026.
- GR Engineering Services originally designed and built the Cosmic Boy Concentrator in 2009, reducing execution risk through direct institutional knowledge of the plant and Ravensthorpe mineralogy.
- First production at Kundip is targeted for Q2 2027, with the Early Processing Strategy on third-party ore providing operational activity at CBC ahead of mine production coming online.
$50 million EPC contract locks in Cosmic Boy construction with GR Engineering
Medallion Metals (ASX:MM8) has executed a $50 million lump sum Engineering, Procurement and Construction (EPC) contract with GR Engineering Services (ASX:GNG) for the refurbishment and conversion of the Cosmic Boy Concentrator (CBC). The contract covers design, procurement, construction and commissioning to convert CBC into a standalone facility capable of producing copper concentrate and gold doré. It replaces the earlier $7.6 million Early Works Agreement (EWA) that commenced in June 2026, with processing operations expected to begin in October 2026, initially on third-party ore.
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Contract details and what the $50 million covers
The EPC contract was executed by Medallion’s wholly owned subsidiary, Myamba Minerals Pty Ltd. The scope covers the remaining engineering, procurement, construction and commissioning activities required to refurbish and modify CBC as a standalone processing facility, targeting the 650ktpa throughput rate established in the Feasibility Study.
The $50 million contract value compares favourably with the $49 million estimated in the Feasibility Study for establishing gold and copper processing capability at CBC — a signal of cost discipline that investors will note. GR Engineering Services (GRES) has been working under the EWA since June 2026, completing the front end engineering and design (FEED) programme and ordering long-lead items. That prior work means the project transitions directly into full EPC delivery without interruption.
Key contract specifics at a glance:
- Contracting party: Myamba Minerals Pty Ltd (wholly owned subsidiary of Medallion Metals)
- Contract type: Lump sum EPC
- Contract value: $50 million
- Throughput target: 650ktpa (per Feasibility Study)
- Scope: Design, procurement, construction and commissioning of CBC refurbishment
- Concrete pouring: Expected to commence first week of September 2026
- Processing commencement: Targeted early October 2026
GRES originally designed and constructed the CBC in 2009, making the partnership a logical one given the contractor’s institutional knowledge of both the existing plant and Ravensthorpe mineralogy.
Paul Bennett, Managing Director, Medallion Metals
“We are very pleased to have finalised the EPC contract and to be partnering with GR Engineering on the refurbishment and modification of Cosmic Boy. Having originally designed and constructed the facility in 2009, GRES brings a detailed understanding of the existing plant as well as extensive knowledge of the Ravensthorpe mineralogy making this a logical partnership for Medallion and an extension of long-standing relationships between the two organisations. The contract value has been agreed in line with the Feasibility estimate and on terms that provide cost certainty. Its execution is another important operational step that brings us closer to production. Development works are now well underway at both Forrestania and Ravensthorpe. We expect to commence processing operations at Cosmic Boy in October, initially on third-party ore, while advancing mine development at Kundip with first production targeted in the second quarter of 2027.”
What is an EPC contract and why it matters for mining investors
An EPC contract (Engineering, Procurement and Construction) is an agreement where a single contractor takes full responsibility for delivering a project from design through to completion, under one fixed price. The contractor manages everything: the engineering drawings, sourcing of equipment and materials, physical construction, and commissioning. The mine owner knows upfront what it will cost.
This is meaningfully different from earlier-stage agreements like the EWA, which covered front end engineering and design, procurement of long-lead items, and site readiness activities. The EWA was a necessary precursor; the EPC contract is the main event.
In Medallion’s case, the $50 million lump sum aligns almost exactly with the $49 million Feasibility Study estimate, meaning there is no cost blowout signalled at this stage of the project.
Development momentum across both project sites
Forrestania Gold Project (FGP) — Cosmic Boy progress
Construction and pre-processing activities are advancing across multiple workstreams at the Cosmic Boy site:
- Surface earthworks complete; civil works progressing
- Second ball mill components in transit, scheduled to arrive at the Port of Fremantle 17 September 2026 before transport to site
- Third-party ore being delivered and stockpiled on the CBC ROM pad
- Fabrication of additional carbon-in-column tanks well advanced
- Processing expected to commence early October 2026 (Early Processing Strategy)
Ravensthorpe Gold Project (RGP) — mine development advancing
At Ravensthorpe, site preparation activities are tracking toward the box cut excavation that will mark the start of mine development proper:
- Civil works and infrastructure readiness progressing
- Box cut excavation scheduled to commence September 2026
- Accommodation rooms being relocated from Forrestania to Ravensthorpe camp
- Mine offices and underground infrastructure relocating from Spotted Quoll to RGP
- First production at Kundip targeted Q2 2027
| Project | Site | Activity | Status | Expected Date |
|---|---|---|---|---|
| FGP | Cosmic Boy | Site earthworks | Complete | — |
| FGP | Cosmic Boy | Ball mill components arrival (Port of Fremantle) | In transit | 17 Sep 2026 |
| FGP | Cosmic Boy | Processing commencement (third-party ore) | Advancing | Early Oct 2026 |
| RGP | Ravensthorpe | Box cut excavation | Scheduled | Sep 2026 |
| RGP | Kundip | First production | Targeted | Q2 2027 |
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Investment thesis — cost certainty, construction momentum, near-term production
Three signals stand out from this announcement for investors assessing Medallion’s project trajectory. The $50 million contract value is in line with the Feasibility Study’s $49 million estimate, indicating no cost blowout at this stage of construction. Concrete pouring is expected to begin in the first week of September 2026, meaning execution risk is actively being reduced rather than deferred. And the timeline is specific: processing commencing October 2026 on third-party ore, with first production at Kundip targeted for Q2 2027.
The Early Processing Strategy on third-party ore is also worth noting. It represents a near-term pathway to earlier operational activity at the refurbished facility, predating Kundip production. With GRES already on site and earthworks complete, the project is well past the planning stage.
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