Forrestania Resources Declares 71.9koz Gold Reserve With $144M Cash Flow Potential
Key Takeaways
- Forrestania Resources has declared a maiden Ore Reserve of 71.9 koz Au at 1.43 g/t Au for British Hill, entirely classified as Probable and 100% underpinned by Ore Reserves with no Inferred material in the production schedule.
- The PFS projects pre-tax undiscounted free cash flow of A$144.4M at the current spot price of A$6,140/oz against total project capital of just A$16.1M — a ratio made possible by hauling ore 145 km to the existing Edna May processing facility.
- Average AISC of A$3,609/oz at the base case gold price of A$5,500/oz leaves a substantial margin buffer even in a significantly weaker gold price environment.
- Mine start is targeted for January 2027, with a Native Vegetation Clearing Permit already submitted on 6 July 2026 and key contracts awarded to Campbell Gold Haulage and a TSF lift contractor.
- A further 12.2 koz Au of Inferred material sits inside the current pit shell and is excluded from the reserve — ongoing RC and diamond drilling targets conversion of this material to Indicated status, which could extend mine life without a new discovery.
British Hill PFS delivers maiden Ore Reserve and clear pathway to near-term gold production
Forrestania Resources (ASX: FRS) has completed its British Hill Pre-Feasibility Study and declared a maiden Ore Reserve of 1,563 kt at 1.43 g/t Au for 71.9 koz Au, entirely classified as Probable. The PFS demonstrates estimated pre-tax undiscounted free cash flow of A$104.8M at a gold price of A$5,500/oz, rising to A$144.4M at the approximate spot price of A$6,140/oz as at 11 September 2026, converting resource confidence into a bankable near-term production pathway.
When big ASX news breaks, our subscribers know first
Q1 FY27 milestone: key PFS outcomes at a glance
The table below summarises the headline study parameters from the British Hill PFS, prepared to an accuracy of approximately ±30%.
| Parameter | Unit | Value |
|---|---|---|
| Project life (total) | Months | 24 |
| Mining period | Months | 23 |
| Processing period | Months | 11 |
| Ore Reserve | koz Au | 71.9 |
| Average AISC | A$/oz | 3,609 |
| Total project capital | A$M | 16.1 |
| Metallurgical recovery | % | 89 |
| Strip ratio | waste:ore | 11.8:1 |
Three additional points frame the upside scenario:
- At the A$6,140/oz spot price, estimated pre-tax undiscounted free cash flow rises to A$144.4M, with average AISC of A$3,628/oz
- 100% of the Production Target is underpinned by Ore Reserves, with no Inferred material included
- Gold doré is planned to be sold at spot price to the Perth Mint as it is produced
The Edna May hub advantage: why low capex changes the investment equation
The project’s defining structural advantage is what it does not require. Rather than constructing a standalone processing facility at British Hill, ore will be hauled approximately 145 km by road to Forrestania’s existing Edna May processing facility near Westonia, Western Australia. This eliminates the most capital-intensive component of most greenfields gold developments.
The Edna May facility is a hybrid carbon-in-pulp (CIP) and carbon-in-leach (CIL) gold processing plant with a nominal capacity of approximately 2.9 Mtpa (million tonnes per annum). Constructed by GR Engineering Services and commissioned in 2010, the facility has historically produced more than 1 Moz Au from multiple satellite ore sources, including Edna May, Tampia, Marda and Symes.
By leveraging this existing infrastructure, total project capital is estimated at just A$16.1M, broken down as follows:
- Mine site establishment and mobilisation: A$4.7M
- Edna May plant upgrades (restart capital): A$9.2M
- Ore haulage infrastructure: A$0.4M
- Approvals and studies: A$0.3M
- Closure and rehabilitation: A$1.5M
Ore processing is scheduled to commence in Month 13 of the project, after sufficient run-of-mine stockpile has been built to support continuous haulage operations. Campbell Gold Haulage Pty Ltd was awarded the road haulage contract following a competitive tender process.
Why A$16.1M capex stands out in the current gold market
At current gold prices, the project is expected to generate estimated free cash flow of A$144.4M against a total capital requirement of A$16.1M. That is a compelling ratio by any measure, and it is made possible entirely by the hub-and-spoke model that avoids new processing construction at site.
Forrestania secured $23M to fund its gold production expansion, providing the capital headroom to advance the Edna May restart, cover the A$16.1M total project capital, and sustain exploration drilling across the broader project portfolio.
David Geraghty, Chairman, Forrestania Resources
“British Hill is a strong fit with Forrestania’s hub strategy, with ore planned to be hauled to the established Edna May processing facility. The project has the potential to deliver near-term gold production while further RC and Diamond drilling continues to grow the broader resource and reserve base.”
Resource to reserve: what the conversion ratio tells investors
The August 2026 British Hill Mineral Resource Estimate (MRE) stands at 3.29 Mt at 1.66 g/t Au for 175 koz Au, comprising 2.03 Mt at 1.54 g/t Au for 100,260 oz Au in the Indicated category and 1.26 Mt at 1.86 g/t Au for 75,430 oz Au in the Inferred category.
The maiden Ore Reserve of 71.9 koz Au represents a conversion ratio of 41% (Ore Reserve ounces divided by total MRE ounces). This figure reflects a deliberate and conservative approach: only the higher-confidence Indicated portion of the resource was used as the basis for the reserve. Inferred material was treated as waste and excluded entirely from the production schedule and economic evaluation. That is a conservative methodology, not a limitation.
Upside from Inferred resources within the pit shell
Within the current pit design, there is a further 300 kt at 1.27 g/t Au for 12.2 koz Au of Inferred Mineral Resources that are currently treated as waste and excluded from the Production Target. Ongoing reverse circulation (RC) and diamond drilling is targeting conversion of this material. Should drilling succeed in upgrading some or all of this material to Indicated status, it could extend mine life or lift reserve ounces without requiring a new discovery. Further drilling and technical studies will be required before any of this material can be considered for conversion to Ore Reserves.
Development schedule and approvals on track
Mine start is targeted for January 2027, with the approvals pathway progressing in a staged sequence:
- A Stage 1 Mining Development and Closure Proposal is in preparation, covering above water table mining
- A Native Vegetation Clearing Permit application was submitted on 6 July 2026 and is currently under assessment
- Stage 2 approvals (covering below water table mining to approximately 125m depth) are planned for subsequent submission in line with the development schedule
- Key contracts are in place for road haulage (Campbell Gold Haulage) and a lift of the Edna May tailings storage facility (TSF)
The Competent Person has reviewed the approvals pathway and considers there are reasonable grounds to expect that the approvals required for each stage will be obtained within the timeframes assumed in the PFS.
The next major ASX story will hit our subscribers first
What’s next for FRS
With the PFS complete and the maiden Ore Reserve declared, Forrestania has a clear set of forward work priorities:
- Further RC and diamond drilling to grow the broader resource and reserve base beyond the current pit
- Additional metallurgical test work underway to refine recovery, comminution and rheology assumptions
- Detailed mine design and contractor tendering to advance ahead of the targeted January 2027 start
- Edna May processing facility restart planning and TSF lift progressing in parallel
Don’t Miss the Next ASX Gold Producer Taking Shape
Get FREE breaking ASX gold news delivered to your inbox within minutes of release, complete with in-depth analysis. Join 30,000+ subscribers already staying ahead of the market. Click the “Free Alerts” button at Discovery Alert to receive the latest gold sector announcements the moment they hit the ASX.