Forrestania Resources Locks in Supply Deals and Ore Agreement to Restart Dual Gold Hubs
Key Takeaways
- Forrestania has signed a 5-year sodium cyanide supply agreement with Orica Australia commencing 2027, covering approximately 1,000 tonnes per annum with a minimum contracted volume of 5,000 tonnes — the anchor deal in the Q1 FY27 operational package.
- An ore purchase agreement with First Au Limited allows FRS to process up to 2 million tonnes of third-party ore across a 24-month campaign framework, generating gold recovery revenue before the company's own mines return to production.
- SAG mill and ball mill liners have been ordered for Edna May with delivery scheduled November 2026, alongside grinding media and activated carbon — setting a hard equipment milestone for restart readiness.
- Laboratory services (SGS Australia) and haulage and logistics (Campbell Gold Haulage) framework agreements are now in place, completing the core supply chain stack across both Lake Johnston and Edna May processing hubs.
- The dual-hub strategy positions FRS as a regional processing consolidator in WA, with the flexibility to source ore from multiple third parties or own mines across both facilities.
Forrestania locks in key agreements to advance dual processing hub restart
Forrestania Resources (ASX: FRS) has executed a suite of commercial agreements to support the development of its Lake Johnston and Edna May processing hubs in Western Australia. The package of deals spans laboratory services, logistics, reagent supply, equipment procurement, and an ore purchase agreement with First Au Limited, collectively advancing restart readiness across both facilities.
The company is methodically assembling the operational building blocks required for production, with each agreement addressing a distinct supply chain or processing prerequisite.
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Q1 FY27 operational agreements at a glance
The key agreements and procurement actions announced cover the full operational stack required to support processing at both hubs:
- SGS Australia Pty Ltd — laboratory services framework across Lake Johnston and Edna May, providing access to commercial laboratory capability with a pathway for future on-site services
- Campbell Gold Haulage Pty Ltd — haulage and logistics framework to support ore transport into both processing hubs and future regional ore sourcing
- Orica Australia Pty Ltd — 5-year sodium cyanide supply agreement commencing 2027, with forecast volumes of approximately 1,000 tonnes per annum and a minimum contracted volume of 5,000 tonnes over the initial term
- Long-lead equipment orders — SAG mill and ball mill liners ordered and scheduled for delivery November 2026, plus grinding media and activated carbon for grinding and gold recovery circuits
The Orica agreement is the anchor deal in this package. A named reagent with contracted volumes and a 5-year term provides the kind of supply certainty that underpins serious restart planning, not just preparatory intent.
Forrestania’s $23M capital raise provided the financial runway underpinning these supply chain commitments, with the funding package specifically structured to support restart readiness activities across the dual-hub platform.
| Agreement | Counterparty | Scope | Key Term | Relevance |
|---|---|---|---|---|
| Laboratory Services | SGS Australia Pty Ltd | Lake Johnston + Edna May | Framework agreement | Analytical capability for ore and processing samples |
| Haulage & Logistics | Campbell Gold Haulage Pty Ltd | Ore transport to both hubs | Framework agreement | Supports third-party and own-mine ore delivery |
| Sodium Cyanide Supply | Orica Australia Pty Ltd | Lake Johnston Processing Facility | 5-year term, ~1,000 tpa, min 5,000t | Critical reagent for gold leaching circuit |
| SAG & Ball Mill Liners | (Long-lead order) | Edna May restart | Delivery November 2026 | Replacement liners for grinding circuit recommission |
| Grinding Media & Activated Carbon | (Long-lead order) | Edna May restart | Orders placed | Consumables for grinding and gold recovery circuits |
Ore purchase agreement with First Au opens hub utilisation pathway
Beyond the operational supply chain deals, Forrestania has entered into an ore purchase agreement with First Au Limited that creates a near-term revenue pathway before the company’s own mines return to production.
Under the agreement, Forrestania may purchase and process up to 2 million tonnes of third-party ore over a 24-month campaign-based processing framework. Key terms include:
- Campaign parcels expected to range from 50,000 to 150,000 tonnes each
- Forrestania elects which facility (Lake Johnston or Edna May) processes each parcel
- Ore must satisfy agreed grade and metallurgical recovery requirements
- Forrestania acquires title to delivered ore and retains ownership of recovered gold and associated minerals
- Supplier payments are determined under agreed commercial pricing formulae linked to ore characteristics and processing outcomes
This is the hub utilisation strategy in practice. FRS isn’t waiting for its own mines to restart before putting its processing infrastructure to work. Third-party ore campaigns generate throughput and gold recovery revenue from assets that are otherwise sitting idle.
High-grade gold results at Ada Ann represent one source of future own-mine ore supply into the hub network, adding exploration upside to the third-party throughput strategy already in motion with First Au.
Executive Chairman David Geraghty
“We’re continuing to make significant strides following the acquisition of the Edna May Gold Mine… Forrestania is continuing to advance restart readiness activities while building the operational platform required to support long-term utilisation of the Lake Johnston and Edna May processing hubs.”
What is a processing hub strategy and why does it matter for gold investors?
A processing hub strategy centres on owning fixed processing infrastructure — mills, carbon-in-leach (CIL) tanks, reagent circuits — and sourcing ore from multiple mines or third parties to maximise throughput. Carbon-in-leach, or CIL, is the standard gold extraction process where ore slurry passes through a series of tanks, and activated carbon absorbs dissolved gold.
Unlike a single-mine operation, where processing capacity is tied entirely to one ore source, a hub model creates flexibility. If one mine is delayed or underperforming, the facility can still run on ore sourced elsewhere. Third-party ore purchasing is particularly attractive because it generates processing revenue and gold recovery before a company’s own mines reach production, turning fixed infrastructure costs into an active revenue stream.
For FRS specifically, two hubs across WA’s premier gold provinces means the company is building a regional consolidation platform. The goal is not just a single mine restart, but a scalable processing network that can absorb ore from multiple sources across a significant tenement footprint.
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What’s next for Forrestania
The near-term pipeline is concrete rather than speculative:
- November 2026 — SAG mill and ball mill liner delivery for Edna May restart readiness
- 2027 — Sodium cyanide supply agreement with Orica commences
- Continued restart readiness activities progressing across both Lake Johnston and Edna May
- First Au ore supply campaigns to begin under the 24-month framework
FRS is in an active operational build phase with equipment delivery milestones on the near horizon and a live third-party ore agreement already in place. The dual-hub platform is taking tangible shape, with the supply chain, logistics, and reagent foundations now progressively locked in ahead of production.
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