Forrestania Resources Unlocks $60M Cash Flow From Just $8M Capital at Johnson Range
Key Takeaways
- The Johnson Range PFS delivers an estimated A$60.1M pre-tax undiscounted free cash flow at a base case gold price of A$5,500/oz, rising to A$76.8M at the prevailing spot price of A$6,140/oz as at 11 September 2026.
- Total project capital is just A$8.0M — made possible by Forrestania's ownership of the Edna May processing facility, which eliminates the need for standalone processing infrastructure.
- The Forrestania Johnson Range Ore Reserve stands at 308kt at 2.88g/t Au for 28.5koz Au, classified 100% as Probable, with no Inferred Resource material included in the production target or financial projections.
- Mining is planned to commence in December 2026, with key approvals already in place including an approved Mining Proposal, granted groundwater licence, and awarded contracts for both mining services (Mega Resources) and haulage (Campbell Gold Haulage Pty Ltd).
- An additional 34.5koz of Inferred Mineral Resources sits within the current pit design but is excluded from the Ore Reserve, representing potential upside through future drilling and conversion work.
Johnson Range PFS delivers A$60.1M pre-tax free cash flow on a capital cost of just A$8M
Forrestania Resources Limited (ASX: FRS) has announced a dual milestone for its Johnson Range project: the completion of a Pre-Feasibility Study (PFS) and the declaration of its first Ore Reserve. The PFS demonstrates an estimated pre-tax undiscounted free cash flow of A$60.1 million at a gold price of A$5,500/oz, generated from a total project capital requirement of just A$8.0 million.
At the prevailing spot gold price of approximately A$6,140/oz (as at 11 September 2026), that estimated free cash flow rises to A$76.8 million, with an average All-In Sustaining Cost (AISC) of A$2,924/oz.
The Ore Reserve stands at 308kt at 2.88g/t Au for 28.5koz Au, classified 100% as Probable, and underpins the entire production target for the study. The project has a planned total life of 12 months (11 months of mining, 3 months of milling), with mining planned to commence in December 2026.
Chairman David Geraghty
“The Johnson Range Ore Reserve advances Forrestania’s strategy of building near-term gold production opportunities around the Edna May processing hub.”
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Q1 FY27 PFS snapshot — what the numbers reveal
The table below summarises the key study parameters from the Johnson Range PFS.
| Parameter | Detail |
|---|---|
| Start Date | December 2026 |
| Ore Reserve | 308kt @ 2.88g/t Au for 28.5koz Au (100% Probable) |
| Gold Production | 26.3koz Au (at 92% recovery) |
| AISC | A$2,905/oz (base case) |
| Project Capital | A$8.0M |
Additional technical parameters from the study include:
- Strip ratio: 22.9:1 waste to ore
- Mining dilution: 8% at 0.0g/t Au; mining recovery: 91%
- Metallurgical recovery: 92% (oxide, transitional and fresh ore)
- Haulage distance: approximately 236km by road to Edna May
- Cut-off grade: 0.50g/t Au
The Edna May advantage — why this project costs so little
A Pre-Feasibility Study (PFS) is a JORC-compliant study that demonstrates a mine plan is technically achievable and economically viable. It is the gateway milestone before a Final Investment Decision, and it is what allows an Ore Reserve to be formally declared.
An Ore Reserve — specifically a Probable Ore Reserve, derived from Indicated Mineral Resources — means the production target is backed by real, audited geology, not estimates. At Johnson Range, 100% of the production target is underpinned by Ore Reserves, with no Inferred Resource material included as ore in the mine plan or financial projections.
The reason the capital cost sits at just A$8.0M comes down to one asset: the Edna May processing facility. The facility is a hybrid Carbon-in-Leach/Carbon-in-Pulp (CIL/CIP) gold processing plant with a nominal capacity of approximately 2.9 million tonnes per annum (Mtpa) and a historical production record exceeding 1 million ounces of gold. Because Forrestania owns this facility, Johnson Range does not need to build standalone processing infrastructure. The ore is simply hauled approximately 236km by road and fed into an existing plant.
Of the total A$8.0M in project capital, approximately A$1.8M relates to allocated Edna May restart capital, apportioned on a proportional per-tonne-processed basis. Both key operational contracts have been awarded through competitive tender: Campbell Gold Haulage Pty Ltd was awarded the haulage contract, and Mega Resources was awarded the mining services contract.
The Mineral Resource to Ore Reserve conversion ratio currently stands at 22%. Approximately 34.5koz of Inferred Mineral Resources sit within the current pit design but are excluded from the Ore Reserve and production target. These ounces represent potential upside through future drilling and technical work, though further work would be required before any of this material could be converted to higher-confidence classifications.
What the Edna May hub model means for investors
Edna May is not just a single-mine processing facility. Historically, it has operated as a regional hub, treating ore from Edna May, Tampia, Symes, Marda and other satellite deposits. Forrestania’s strategy is to restart this hub-and-spoke model under its own ownership, with Johnson Range as a key spoke feeding the facility.
Ada Ann drilling results from August 2026 added another high-grade satellite target to the Edna May hub pipeline, reinforcing the regional scale of the ore inventory Forrestania is assembling around the processing facility.
That model is what makes the capital efficiency possible. A gold project requiring standalone processing infrastructure could face capex many multiples higher. Here, the processing problem is already solved, and the allocated capex reflects a proportional share of restart costs rather than a new-build.
How close is Johnson Range to production — and what comes next?
This is not an early-stage exploration story. The following approvals and contracts are already in place:
- Mining Proposal: approved
- Mine Closure Plan: in place
- Groundwater licence: granted (up to 472,000 kL/annum)
- Native Vegetation Clearing Permit: submitted, currently under assessment (covering Stage 1 and Stage 2)
- Mining services contract: awarded to Mega Resources
- Haulage contract: awarded to Campbell Gold Haulage Pty Ltd
- Tailings Storage Facility lift at Edna May: contract in place
Mining is planned to commence in December 2026. Ore haulage to the Edna May processing facility is scheduled to commence in Month 9 of the mining schedule, following accumulation of sufficient ROM stockpiles to support continuous haulage operations.
The potential for mine life extension exists via the 34.5koz of Inferred Mineral Resources within the current pit design. These ounces are excluded from the current Ore Reserve and production target, and future drilling and technical work could provide the basis for conversion to higher-confidence resource categories. No outcome from that work is guaranteed.
Chairman David Geraghty
“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.”
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Gold price sensitivity — the margin of safety at current spot prices
The PFS was assessed across a range of gold price assumptions. The base case uses an Ore Reserve gold price of A$5,500/oz. At the time of the announcement, the prevailing spot gold price exceeded that assumption, providing a meaningful margin of safety in the project economics.
The sensitivity table below illustrates how estimated pre-tax free cash flow scales across a range of gold prices.
| Gold Price (A$/oz) | Undiscounted Pre-Tax Free Cash Flow (A$M) | AISC (A$/oz) |
|---|---|---|
| A$4,500 | A$34.6M | A$2,874 |
| A$5,500 (base case) | A$60.1M | A$2,905 |
| A$6,140 (spot, 11 Sep 2026) | A$76.8M | A$2,924 |
| A$7,000 | A$98.3M | A$2,950 |
| A$7,500 | A$111.0M | A$2,965 |
With an AISC of A$2,905/oz at the base case and spot gold pricing well above the Ore Reserve price assumption at the time of the announcement, the project carries substantial margin across the sensitivity range assessed. Even at A$4,500/oz, the study shows positive free cash flow, which tells you the project is not dependent on elevated gold prices to function economically.
The PFS accuracy is assessed at approximately ±25%, consistent with an AACE International Class 3 estimate at Pre-Feasibility Study level.
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