Highlights

• Johnson Range study highlights AU$60.10 million pre-tax cash flow potential from planned gold development.
• Forrestania receives global recognition through inclusion in the GDXJ junior gold ETF.
• Zenith takeover progresses with Forrestania holding a relevant interest of 58.33%.

Forrestania Resources Limited (ASX: FRS) announced several important updates today, with the company trading at a (CMP) of AU$0.375 with the 4% surge in stock. The company reported progress across its gold development pipeline, strengthened its global market presence through GDXJ inclusion and provided an update on its Zenith Minerals takeover offer.

Johnson Range Project Moves Closer to Development Stage

Forrestania’s Johnson Range project has reached a key milestone following the completion of its Pre-Feasibility Study, highlighting its potential as a near-term gold development opportunity. The project’s Ore Reserve stands at 308,000 tonnes grading 2.88 grams per tonne gold for 28,500 ounces, with the production plan fully supported by Probable Ore Reserves. The study estimates pre-tax undiscounted free cash flow of AU$60.10 million based on an assumed gold price of AU$5,500 per ounce. Mining activities are expected to continue for around 11 months, while processing is planned over a three-month period. The project’s average all-in sustaining cost is estimated at AU$2,905 per ounce.

A relatively low capital requirement of approximately AU$8.00 million supports the development pathway. The company plans to transport mined ore approximately 236 kilometres to the Edna May processing facility, allowing Forrestania to utilise existing infrastructure and reduce the requirement for a separate processing facility. The project incorporates an average metallurgical recovery rate of approximately 92%. Johnson Range also has a wider Mineral Resource base of approximately 2.04 million tonnes at 1.99 grams per tonne gold for 131,000 ounces. Additional Inferred Resources within the designed pit remain excluded from the current Ore Reserve and production schedule, creating potential opportunities for future resource upgrades.

Global Exposure Improves Through GDXJ Addition

Forrestania has been included in the VanEck Junior Gold Miners ETF (GDXJ), increasing its visibility within the international junior precious metals investment landscape. The inclusion provides exposure to a broader investor base following companies involved in gold and precious metals development.

Zenith Minerals Takeover Update

The company confirmed that its Zenith Minerals takeover offer remains open following recent Takeovers Panel proceedings. Forrestania has secured acceptances from Zenith shareholders representing approximately 49.23% of Zenith shares, resulting in a relevant interest of approximately 58.33%.

The company continues to progress the offer while Zenith shareholders retain the ability to accept the proposal according to the stated offer process.

Outlook

Forrestania’s focus remains on advancing Johnson Range towards development, leveraging the Edna May processing hub and completing strategic growth initiatives. The company’s ability to execute project timelines, expand resources and move closer to production will remain central to its future growth strategy.

Note- All data presented is based on information available at the time of writing.

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