Forrestania Resources Delivers Tycho Near-Term Gold Production Case
Key Takeaways
- Forrestania Resources has declared a maiden Probable Ore Reserve of 418kt at 1.10g/t Au for 14.7koz Au at the Tycho Deposit, underpinning a positive Pre-Feasibility Study with total project capital of just A$11.5M.
- At the spot gold price of approximately A$6,140/oz recorded on 11 September 2026, the project is estimated to generate A$18.0M in pre-tax undiscounted free cash flow — a compelling return relative to the capital required over an eight-month project life.
- The hub-and-spoke model routes ore 278km by road to the existing Edna May processing facility, eliminating the need for new processing infrastructure and reducing capital requirements to a fraction of a greenfield development.
- Contracts for mining (Mega Resources), road haulage (Cambells Gold Haulage), and TSF construction (JWI Contractors) are already in place, alongside approved Mining Proposal, Mine Closure Plan, and environmental permits — the project is execution-ready, not study-stage.
- Tycho is positioned as the first of several satellite deposits intended to feed the Edna May hub, with Ada Ann identified as a second potential ore source, supporting Forrestania's broader regional gold consolidation strategy.
Tycho PFS delivers maiden Ore Reserve and near-term production case for Forrestania
Forrestania Resources (ASX: FRS) has declared its maiden Ore Reserve for the Tycho Deposit and delivered a positive Pre-Feasibility Study, positioning Tycho as a substantially execution-ready, near-term gold production opportunity. The study is built entirely on 418kt at 1.10g/t Au for 14.7koz Au of Probable Ore Reserves, with ore planned to be hauled approximately 278km by road to Forrestania’s existing Edna May processing facility — a hub-and-spoke model that materially reduces capital requirements and accelerates the path to production.
At a base case gold price of A$5,500/oz, the project is estimated to generate pre-tax undiscounted free cash flow of A$9.9M over an eight-month project life. At the prevailing spot price of approximately A$6,140/oz (as at 11 September 2026), that figure rises to an estimated A$18.0M. This is not a concept study. Key contracts for mining, haulage, and tailings storage facility construction are already in place.
Key project metrics at a glance
| Parameter | Unit | PFS Outcome |
|---|---|---|
| Project life | Months | 8 |
| Mining period | Months | 7 |
| Milling period | Months | 4 |
| Ore Reserve | — | 418kt at 1.10g/t Au / 14.7koz Au (100% Probable) |
| Gold production | koz Au | ~13.0 |
| Average metallurgical recovery | % | ~88% |
| Gold price assumption | A$/oz | 5,500 |
| AISC | A$/oz | 3,849 |
| Total project capital | A$M | 11.5 |
| Pre-tax undiscounted free cash flow | A$M | 9.9 |
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Why Tycho works — the hub-and-spoke economics explained
The hub-and-spoke model in gold mining means a central processing plant treats ore from multiple satellite deposits in the surrounding region, rather than each deposit building its own standalone mill. For investors, the logic is straightforward: processing infrastructure is expensive to build and time-consuming to permit. When that infrastructure already exists and is proven, a satellite deposit like Tycho can move from study to production at a fraction of the cost and timeline of a greenfield development.
The Edna May processing facility, located near Westonia, Western Australia, is the hub in Forrestania’s model. It is a conventional CIL/CIP (carbon-in-leach/carbon-in-pulp) gold processing facility with a nominal capacity of approximately 2.9 million tonnes per annum (Mtpa), constructed by GR Engineering Services and commissioned in 2010. The facility has an established history as a regional processing hub, having treated ore from Edna May, Greenfinch, Tampia, Marda, Symes, and other satellite operations over its operational life.
For Tycho, this means no new processing infrastructure needs to be built at the mine site. Total project capital is estimated at A$11.5M, of which only approximately A$2.5M represents Edna May restart capital allocated to Tycho on a proportional $/t ore processed basis.
The AISC of A$3,849/oz breaks down as follows:
- Mining: A$1,820/oz
- Haulage: A$940/oz
- Processing: A$801/oz
- Site G&A: A$115/oz
- Royalties: A$126/oz
- Corporate G&A: A$34/oz
- Sustaining capital: A$14/oz
The haulage component reflects the approximately 278km road haul from the Tycho ROM pad to the Edna May facility — a material but manageable cost that has been directly costed through the contracted haulage provider.
Execution-ready status — contracts already in place
The project has moved well past study-stage. The following contracts and approvals are in place:
- Mining services: Mega Resources, awarded via competitive tender — covers drill and blast, load and haul, and ROM management
- Road haulage: Cambells Gold Haulage, awarded via competitive tender — C-train and short-triple road train configurations, 24/7 operations
- Edna May TSF lift: JWI Contractors Pty Ltd selected to construct the Stage 11 lift of the tailings storage facility
- Key approvals in place: approved Mining Proposal, Mine Closure Plan, Native Vegetation Clearing Permit, and groundwater approvals
- Environmental baseline studies complete: no additional studies identified as necessary before mining commencement
For capital markets purposes, this level of execution readiness is meaningful. The company is not presenting a plan — it is presenting a project with contracted counterparties, approved permits, and a defined path to first production.
Financial case — gold price sensitivity and project returns
The PFS base case uses a gold price of A$5,500/oz, at which the project generates estimated pre-tax undiscounted free cash flow of A$9.9M against total project capital of A$11.5M. At the spot price of approximately A$6,140/oz recorded on 11 September 2026, that cash flow estimate increases to A$18.0M — a significant uplift relative to the capital required.
The sensitivity analysis confirms that project economics are most sensitive to changes in gold price and metallurgical recovery, followed by operating costs. Capital cost variations have a comparatively lower impact. The full gold price sensitivity table is presented below.
| Gold Price (A$/oz) | Revenue (A$M) | Operating Costs (A$M) | Capital Costs (A$M) | Total Royalties (A$M) | Undiscounted Pre-Tax Cashflow (A$M) | AISC (A$/oz) |
|---|---|---|---|---|---|---|
| 4,500 | 58.3 | 48.3 | 11.5 | 1.3 | -2.8 | 3,826 |
| 5,000 | 64.8 | 48.3 | 11.5 | 1.5 | 3.6 | 3,837 |
| 5,500 | 71.3 | 48.3 | 11.5 | 1.6 | 9.9 | 3,849 |
| 6,000 | 77.7 | 48.3 | 11.5 | 1.8 | 16.2 | 3,860 |
| 6,500 | 84.2 | 48.3 | 11.5 | 1.9 | 22.6 | 3,872 |
| 7,000 | 90.7 | 48.3 | 11.5 | 2.1 | 28.9 | 3,883 |
| 7,500 | 97.2 | 48.3 | 11.5 | 2.2 | 35.2 | 3,895 |
What the table tells you: at any gold price above approximately A$5,000/oz, the project is expected to generate positive pre-tax free cash flow. At current spot prices, the projected return relative to capital invested is compelling on a short-life basis.
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Resource to reserve conversion and the upside case
The Tycho Mineral Resource Estimate (MRE), previously reported in May 2026, totals 1.44Mt at 0.98g/t Au for 45.5koz Au, with approximately 92% classified as Measured and Indicated. The breakdown is as follows: Measured — 540kt at 0.99g/t Au for 17.2koz; Indicated — 782kt at 0.99g/t Au for 24.8koz; Inferred — 117kt at 0.93g/t Au for 3.5koz.
The Ore Reserve conversion ratio from total MRE is 32%, reflecting the application of conservative modifying factors including a 9% mining dilution allowance, 91% mining recovery, and a 0.5g/t Au cut-off grade. Inferred Resources were treated as waste in the pit optimisation and are excluded from both the Ore Reserve and all financial projections.
There is potential upside, however. Within the current pit shell sit 38.4kt at 0.91g/t Au for 1.1koz of Inferred Resources, which the announcement notes provide “potential upside…from upgrading Inferred Mineral Resources.” Further drilling and technical studies would be required before any of this material could be considered for conversion to Ore Reserves. It is not included in the production target or financial projections.
Tycho forms part of the broader MacPhersons Reward Project, located 2.5km south of the MacPhersons Reward Pit, which was recently mined by Beacon Minerals, providing a regional operational precedent for this style of development.
Chairman’s view — building a scalable regional gold business
David Geraghty, Chairman, Forrestania Resources
“Tycho demonstrates the strength of Forrestania’s hub-and-spoke development model, transforming a quality gold resource into a near-term production opportunity through the utilisation of existing processing infrastructure. The maiden Ore Reserve and positive Pre-Feasibility Study provide confidence in the project’s ability to generate meaningful cash flow while requiring relatively modest capital investment. Importantly, Tycho is expected to become one of several deposits contributing ore to the Edna May hub, supporting our vision of establishing a scalable and sustainable regional gold business.”
Tycho is positioned as the first contributor to the Edna May processing hub, not a standalone project. Forrestania’s broader strategy targets two complementary processing hubs across Western Australia’s premier mineral provinces — Edna May in the Eastern Goldfields and Lake Johnston in the Forrestania region. The successful delivery of this PFS and maiden Ore Reserve represents the first concrete step in translating that regional consolidation strategy into near-term production.
High-grade gold results at Ada Ann represent a second potential ore source for the Edna May hub, reinforcing the chairman’s view that Tycho is the first of several satellite deposits intended to contribute to a scalable regional processing model.
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