Forrestania Resources Declares 402.8koz Reserve, A$729M Cash Flow Potential
Key Takeaways
- Forrestania Resources has declared a maiden JORC-compliant Probable Ore Reserve of 12.6 million tonnes at 0.99 g/t Au for 402.8 koz at Edna May — 100% Probable, with zero reliance on lower-confidence Inferred material in the economic case.
- The PFS projects pre-tax undiscounted free cash flow of A$728.7 million at a base case gold price of A$5,500/oz, rising to A$961.0 million at the current spot price of approximately A$6,140/oz.
- Total project capital is estimated at A$98.0 million — a figure materially compressed by the existing 2.9 Mtpa CIL/CIP processing facility, 185-person accommodation village, airstrip, and grid power connection already on site.
- Stage 3 Cutback approvals are not yet in hand, but the PFS estimates State and Federal sign-off is achievable within 3 to 9 months, with no material environmental blockers identified.
- A further 42.5 koz at 1.91 g/t Au of Inferred material sits inside the current pit shell and is currently treated as waste — additional drilling could upgrade this material and extend the production case beyond the current 10-year mine life.
Forrestania delivers maiden 402.8 koz ore reserve and A$729M cash flow case at Edna May
Forrestania Resources (ASX: FRS) has completed a Pre-Feasibility Study (PFS) and declared a maiden JORC-compliant Probable Ore Reserve at its Edna May Gold Project, converting the care-and-maintenance asset into a defined development opportunity with a 10-year projected mine life and estimated pre-tax undiscounted free cash flow of A$728.7 million at a gold price of A$5,500 per ounce.
The maiden Ore Reserve stands at 12.6 million tonnes at 0.99 g/t Au for 402.8 thousand ounces of gold, classified 100% Probable. Total project capital is estimated at approximately A$98.0 million, against an average All-In Sustaining Cost (AISC) of A$3,293 per ounce. At the spot gold price of approximately A$6,140 per ounce (as at 11 September 2026), the estimated pre-tax undiscounted free cash flow rises to A$961.0 million.
Chairman David Geraghty
“The Edna May Ore Reserve and Pre-Feasibility Study provide a strong technical and economic basis for the redevelopment of this established gold operation. The study benefits from substantial existing infrastructure, a proven processing facility and a long operating history, while identifying a clear pathway to restart and future production.”
“With a 400,000-ounce Probable Ore Reserve underpinning 100% of the production target and strong projected cash generation at the PFS gold price assumption, Edna May is expected to form a key part of Forrestania’s Westonia Hub strategy.”
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What is a Pre-Feasibility Study and why does this ore reserve matter?
For investors who are newer to mining, these terms carry real weight. Here is what each milestone means and why together they matter.
- A PFS sits between a scoping study and a Definitive Feasibility Study, prepared to an accuracy of ±30%. That level of rigour is what permits an Ore Reserve to be formally declared under the JORC Code.
- JORC Ore Reserves are the highest-confidence inventory category in Australian mining. To qualify, material must be demonstrated to be both technically extractable and economically viable under current assumptions.
- The 100% Probable classification means every ounce underpinning the production target and financial projections is backed by reserve. Zero reliance on lower-confidence Inferred material has been incorporated into the economic case.
- The Mineral Resource to Ore Reserve conversion ratio sits at 43% (402.8 koz from a total Mineral Resource Estimate of 945 koz). That leaves a meaningful volume of ounces, including 42.5 koz at 1.91 g/t Au of Inferred material inside the current pit shell, currently treated as waste and excluded from the production target. Further drilling could upgrade this material.
For investors, a maiden Ore Reserve transforms a speculative project into a bankable development asset. It is the milestone that typically opens the door to debt financing conversations and re-rates market valuation.
PFS key study outcomes at a glance
| Parameter | Unit | PFS Outcome |
|---|---|---|
| Ore Reserve | kt | 12,600 |
| Grade | g/t Au | 0.99 |
| Contained gold | koz Au | 402.8 |
| Average metallurgical recovery | % | 93% |
| Project capital | A$M | 98.0 |
| AISC | A$/oz | 3,293 |
| Pre-tax undiscounted FCF (A$5,500/oz base case) | A$M | 728.7 |
| Pre-tax undiscounted FCF (A$6,140/oz spot) | A$M | 961.0 |
| Project life (mining / milling) | Years | 10 / 9 |
The gold price sensitivity analysis illustrates just how leveraged the project is to the current gold price environment:
- At A$4,500/oz: estimated pre-tax undiscounted FCF of A$366M
- At A$5,500/oz (base case): A$729M
- At A$6,500/oz: A$1,092M
- At A$7,500/oz: A$1,455M
The project is estimated to remain cash flow positive across all sensitivity cases assessed in the PFS.
Infrastructure advantage and the Westonia Hub strategy
One of the most material factors in the Edna May PFS economics is what Forrestania does not need to build. The project is a brownfield operation with substantial established infrastructure already in place, which is a significant contributor to the relatively modest A$98.0 million project capital estimate.
A processing plant already built and permitted
The existing 2.9 million tonne per annum hybrid CIL/CIP processing facility was constructed by GR Engineering Services and commissioned in 2010. It has a demonstrated history of processing ore from multiple deposits including Edna May, Tampia, Greenfinch, Symes and Marda, operating as a regional hub-and-spoke processing centre.
The plant was placed on care and maintenance in April 2025, but was not decommissioned. Historical gold recovery of 91–94% underpins the PFS assumption of a conservative 93% average metallurgical recovery. The site also includes a 185-person accommodation village, an airstrip, grid power connection, and established tailings storage infrastructure.
Importantly, plant refurbishment capital has been excluded from the A$98.0 million project capital figure. It is allocated separately across Forrestania’s Westonia Hub sites as a cost per tonne milled, reflecting the broader multi-project strategy the processing facility is intended to serve.
Stage 3 approvals — defined pathway, no material blockers identified
The proposed Stage 3 Cutback that underpins the Ore Reserve is not currently approved. However, the PFS approvals pathway estimates that the required State and Federal approvals are expected to be achievable within approximately 3 to 9 months. Environmental reviews completed as part of the PFS did not identify any material issues presently considered likely to preclude development.
Per the PFS schedule, mining is planned to commence in January 2030. The brownfield context means Forrestania is building on an existing approvals framework rather than navigating a greenfield regulatory process from the beginning.
The combination of a low capital requirement and an existing, permitted processing facility means the A$98.0 million capex figure sits in materially different territory to what a comparable greenfield project would demand. Contextualising that number against the A$729M+ projected free cash flow at the base case gold price is where the investment thesis for Edna May begins.
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What comes next for Forrestania Resources?
The PFS marks the completion of a significant de-risking milestone, but Forrestania has a clear pipeline of next steps before any production commences. A January 2030 targeted production start is the planning anchor, and several workstreams must advance in the years prior:
- Progress Stage 3 Cutback statutory approvals at both State and Federal level
- Advance the Westonia Hub strategy, integrating Tampia and Symes satellite projects as complementary ore sources for the processing facility
- Undertake further drilling to pursue conversion of the 42.5 koz at 1.91 g/t Au of Inferred material currently inside the pit shell and treated as waste, which is excluded from the production target and financial projections
- Advance plant refurbishment planning ahead of the targeted January 2030 production commencement
- Complete additional metallurgical test-work to refine recovery, reagent consumption and blending assumptions as the project progresses toward a Definitive Feasibility Study
Edna May is expected to form one of two complementary processing hubs in Forrestania’s broader strategy, alongside Lake Johnston. The PFS positions the project as the centrepiece of that Westonia Hub vision, with the maiden Ore Reserve providing the technical and economic foundation for the next phase of development.
Forrestania Resources raising $23M in fresh capital provided the financial runway underpinning the Westonia Hub strategy, with proceeds directed toward advancing the broader production pipeline that Edna May is now positioned to anchor.
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