TG Metals Eyes Gold Producer Status via 60kt Stockpile Deal With Medallion
TG Metals has executed a non-binding Ore Processing and Profit Share Agreement with Medallion Metals (ASX:MM8) for approximately 60,000 dry metric tonnes of gold-bearing stockpiles from its Van Uden Gold Project. The stockpiles will be processed through Medallion’s Cosmic Boy Concentrator (CBC), located approximately 70km south of Van Uden, opening a near-term cashflow pathway that positions TG Metals to transition toward gold production.
The agreement, once advanced to binding status and deliveries commence, would see the company join the ranks of gold producers whilst retaining its lithium exposure at Lake Johnston. The arrangement is subject to customary conditions precedent, including due diligence and required approvals, and does not yet represent locked-in revenue.
How the profit-share arrangement works
Under the non-binding framework, the commercial structure operates as follows:
- Medallion’s responsibilities: Recovering, transporting and processing the stockpiles, including tailings management
- TG Metals’ responsibilities: Applicable royalties and ensuring statutory approvals to remove the stockpiles remain active
- Processing approach: Ore processed as discrete campaigns through the CBC
- Payment structure: Medallion first recovers agreed operating costs from processing revenues; remaining pre-tax operating profit shared equally (50:50)
- Payment timing: Provisional payments made after each processing batch; final reconciliation on an open-book basis using actual operating costs, metallurgical performance and gold sales proceeds
For TG Metals, this represents a low-capital, low-risk model that monetises existing stockpiles without requiring construction of processing infrastructure. The stockpiles, previously reported on 21 August 2025 and 2 October 2025, have composite grades between 0.70g/t Au and 0.95g/t Au. These stockpiles are not included in the current Mineral Resource Estimate (MRE).
The source announcement does not disclose dollar revenue forecasts, gold price assumptions, or per-tonne payment figures.
David Selfe, Chief Executive Officer
“This is a significant first ore processing outcome for TG Metals. We look forward to working with Medallion to realise first stockpile feed into the Cosmic Boy plant. The agreement, once advanced to binding, will provide a revenue stream to the Company whilst we continue with further treatment options both onsite via heap leach and offsite for our Van Uden Gold Project. Once stockpile deliveries commence, TG Metals will join the ranks of gold producers and intends to expand on this initiative with further processing options both on-site and off-site.”
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Understanding toll processing and profit-share agreements
A profit-share ore processing agreement allows an explorer without its own processing plant to convert stockpiled ore into saleable gold by using nearby infrastructure. Rather than funding capital-intensive plant construction, the company shares profits with the facility operator.
For investors, this model enables a junior to generate revenue and de-risk operations without large upfront capital expenditure. In TG Metals’ case, the Cosmic Boy Concentrator sits approximately 70km from Van Uden, connected by existing haul roads via the public Forrestania–Marvel Loch road, making haulage logistically straightforward.
This arrangement is complementary to, not a replacement for, TG Metals’ onsite heap leach strategy, providing two near-term cashflow generation streams from the Van Uden Resource.
The Van Uden resource base behind the strategy
The Van Uden Gold Project is 80% owned by TG Metals and sits on the Forrestania Greenstone Belt in Western Australia. The MRE contains 56% in the Indicated category, supporting progression to mining and processing studies. The surface Laterite material is the current focus for heap leach technology.
| Material | Tonnes | Grade (Au g/t) | Gold (oz) |
|---|---|---|---|
| Laterite | 1,053,000 | 0.52 | 17,700 |
| Oxide | 2,390,000 | 1.11 | 85,400 |
| Transition | 1,855,000 | 1.05 | 62,400 |
| Fresh | 2,637,000 | 1.24 | 105,300 |
| Total | 7,935,000 | 1.06 | 270,800 |
MRE reported April 2026 under JORC 2012. Stockpiles subject to the OPPS are NOT part of the MRE.
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What’s next for TG Metals
The company has outlined near-term catalysts across its gold strategy:
- Advance the OPPS from non-binding to binding — subject to due diligence and required approvals
- Commence stockpile deliveries and processing campaigns — once conditions precedent are satisfied; Van Uden site access for haulage can now proceed; approvals to remove stockpiles already in place
- Complete the Van Uden Laterite heap leach study — nearing completion for onsite treatment of gold-bearing laterite and potentially other material types
- Expansion drilling for additional laterite resources — commencing Q3 2026, following the successful auger drilling test programme reported 9 July 2026
- Further RC drilling — along strike and outside the Van Uden MRE influence, pending approvals
TG Metals is progressing two parallel near-term cashflow routes from a single asset: offsite profit-share processing and onsite heap leach. This dual-pathway approach positions the company to transition toward gold production whilst retaining lithium exposure at Lake Johnston, subject to the non-binding agreement advancing to binding status and operational delivery commencing.
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