Key Highlights

  • Forrestania has secured the right to buy up to 750,000 tonnes of ore from the Rockland Gold Project in Western Australia.
  • The binding ore purchase agreement with Dundas Minerals (ASX:DUN) has an initial term of 24 months.
  • Pricing follows a formula linked to ore grade, metallurgical recovery and prevailing gold prices.
  • Edna May is targeting first ore processing in December 2026.

Forrestania Resources (ASX:FRS) has secured the right to buy up to 750,000 tonnes of ore from the Rockland Gold Project in Western Australia, as announced on 9 November 2026. The binding ore purchase agreement is with Dundas Minerals (ASX:DUN), which owns Rockland, and has an initial term of 24 months.

How the pricing works

Pricing follows a formula linked to ore grade, metallurgical recovery and prevailing gold prices. That structure gives both parties exposure to gold prices: Dundas benefits from higher prices through the price it receives, while Forrestania's Margin depends on the spread between the purchase formula and the value of the gold it recovers.

Dundas remains responsible for haulage to Forrestania's processing facility, which means transport costs and logistics risk sit with the seller.

The hub-and-spoke model

The agreement supports Forrestania's strategy of securing third-party ore to feed a hub-and-spoke processing network. The network is anchored by the Edna May and Lake Johnston processing hubs, which have capacities of 2.9 million tonnes a year and 3.2 million tonnes a year respectively.

Dry commissioning is under way at Edna May, and the company is targeting first ore processing in December 2026.

Executive Chairman David Geraghty said the agreement complemented the strategy of building a diversified pipeline of ore Supply around Forrestania's processing infrastructure. He said arrangements like this strengthened the company's ability to maximise utilisation of its plants while supporting the development of a broader Western Australian gold business.

Scale in context

Seven hundred and fifty thousand tonnes over two years is an average of about 375,000 tonnes a year. That would represent around 13% of Edna May's annual capacity if it were all processed there, so Forrestania will need further sources of feed to run its mills near capacity.

Processing plants have high fixed costs, so their Economics depend heavily on throughput. Companies with spare milling capacity in the Goldfields have been actively seeking ore from smaller deposits that lack their own plants.

Corporate activity

Forrestania has also lodged a series of supplementary target's statements with the ASX, the seventh on 9 November, indicating that it is the subject of a Takeover bid. Substantial holding notices were filed on 11 November. Corporate developments may influence how quickly the company can execute its processing strategy, and investors should follow the related disclosures.

The Dundas side

For Dundas, the agreement provides a potential route to monetise Rockland without building a plant. Dundas announced on 10 November that it had exercised an option over a separate Kalgoorlie gold project, indicating it is building a broader portfolio.

Qualifications

The Volume is a maximum, not a guarantee. The amount of ore delivered will depend on Dundas's Mining at Rockland, approvals and economics at prevailing prices. Recovery and grade will determine the actual value of each delivery.

Forrestania's broader strategy reflects how the high Australian dollar gold price has changed the economics of small deposits in Western Australia. Ore that was once marginal at lower prices can now be mined profitably if it can be trucked to a nearby mill. Owners of processing plants have responded by competing for ore purchase and toll-treatment agreements, while owners of small deposits have gained bargaining power. The Rockland agreement is one clear example of that ore market at work. Its value to Forrestania will depend on the grade and recovery of the ore delivered, which will determine both the price paid and the gold produced.

What comes next

Forrestania's immediate milestone is first ore processing at Edna May in December. Investors will also look for further ore supply agreements, details of when Rockland deliveries begin and any developments in the takeover process.