Medallion Resources (MDL.V) has released an extensive update wherein it’s unveiling its plans for 2016. As the company has now completed its flow sheet (where the procedure has been confirmed in bench-scale metallurgical tests), the next logical step would be to try to confirm the flow sheet through pilot plant tests. Medallion will request proposals from established mineral labs that are in a position to conduct pilot plant tests, and this will allow the company to test its flow sheet using larger sample volumes.
Fortunately Medallion’s small-scale bench testing has confirmed its end product to be viable as all of the potential customers it has sent its product to have indicated it meets their requirements. That’s a huge accomplishment and the pilot plant will also focus on meeting those required specifications as well.
Of course, executing on all these plans will cost some money, and Medallion will have to raise cash in the next few weeks and months, as these pilot plants don’t build themselves. Medallion has raised C$225,000 in October at C$0.03 (and we participated in this placement), but will need more cash to indeed execute on its plans for 2016. We do commend the company for its very low burn rate, and the vast majority of the cash it has raised has effectively been invested in developing the business model, rather than paying exorbitant management and director’s fees, and that’s exactly what we’d like to see as shareholders.
We have spent several hours with CEO Don Lay when we were in Vancouver in January, and we will publish a more in-depth report on Medallion Resources soon, wherein we will focus on the economics of its business plan.