With markets performing globally, penny stocks to watch for potential excellent returns are
Xanadu Mines Limited (ASX: XAM)
Xanadu Mines Limited has extended the timeline to ensure the highest standards in mine design and independent reviews, maintaining accountability for PFS delivery to both Australian and Canadian standards. The study is being conducted within the financial framework provided by Zijin Mining Group Co’s initial investment of US$35 million.
Additionally, the company is on track to complete the hydrology drilling program designed to establish a reliable water supply for operations.
Xanadu aims to finalize the Kharmagtai PFS and commence the final stages of pre-construction approvals and permitting in 2025. The transition to Zijin is expected to enhance the project's operational capabilities, ensuring that both teams collaborate effectively. The new management will focus on developing the Bankable Feasibility Study (FS) plan and budget, which will need Xanadu’s approval before proceeding. Funding discussions are ongoing, and the company is optimistic about attracting third-party interest to support the next development phase of Kharmagtai.
Xanadu Mines is currently among the top penny stocks, having made notable progress beyond the Kharmagtai project, reporting promising metallurgical testwork results that show average recovery rates of around 81% for copper and 80% for gold from sulphide feed, indicating strong potential demand for the produced concentrate.
Medallion Metals Limited (ASX: MM8)
Medallion Metals Limited is one of the best penny stocks to invest in right now, as it has made significant strides in developing the Ravensthorpe Gold Project (RGP), which hosts a robust Mineral Resource of 1.3 million ounces of gold at 2.1 g/t Au and 59,000 tonnes of copper. The company is currently focused on obtaining key environmental and mining approvals to facilitate the project's advancement. Concurrently, Medallion is in exclusive negotiations with IGO Ltd to acquire the Cosmic Boy processing plant, which is expected to streamline the processing of RGP's sulphide ore. The sulphide ore component is estimated at 770 koz Au @ 4.3 g/t and 36 kt Cu @ 0.6% Cu, situated within a 60Ha disturbance area, significantly less than the previously approved 245Ha.
The planned referral under the Federal Environment Protection and Biodiversity Conservation Act (EPBC Act) is set for October 2024, with a determination of the assessment pathway expected shortly thereafter. Medallion anticipates that primary approvals could be obtained within six months of this determination, thereby accelerating the timeline for the project's development. This proactive approach aims to mitigate risks associated with the high-grade sulphide component and enhance the project's overall environmental credentials.
The Ravensthorpe Gold Project serves as a vital catalyst for Medallion's growth strategy. With a successful Pre-Feasibility Study confirming the technical and commercial viability of the project, the company is well-positioned to establish a standalone mining operation. The favorable results of the study indicate a potential annual production of 85 koz Au and 1.8 kt Cu, with estimated pre-tax annual cash flows of A$85 million. The strategic acquisition of processing infrastructure at Forrestania will further enhance the project’s economic viability and operational efficiency.
Looking ahead to 2025, Medallion aims to make significant advancements in securing the necessary approvals and completing negotiations for the Cosmic Boy processing plant. The upcoming 15,000-meter drill program will focus on expanding the high-grade sulphide resource and enhancing confidence in the existing estimates. As the company progresses towards a Final Investment Decision (FID) on the Sulphide Development Strategy, it will also pursue further studies and infill drilling to support the planned mining and transportation of RGP ore. With favorable market conditions for gold and copper, coupled with a commitment to environmental stewardship and community engagement, Medallion is poised for transformational growth and value creation in the coming years.
Source: Company’s Report
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