Forrestania Resources (ASX:FSR) has commenced a 3,000-meter reverse circulation drilling program at its British Hill Project, located within the Southern Goldfields of Western Australia.
Situated 90km from the company’s Lake Johnston processing infrastructure, the project represents a near-term production opportunity.
The current campaign is focused on grade control drilling on granted mining lease M77/1256, a critical step in finalising the mine plan for a proposed low-cost open-pit operation.
Kalgoorlie-based VM Drilling has been awarded a massive 90,000-meter drilling contract for 2026 under a "drill-for-equity" arrangement.
The contractor has agreed to accept payment for the first six months of the program in fully paid ordinary shares of Forrestania Resources.
The partnership significantly de-risks the company's capital requirements as it pivots from explorer to producer.
Chairman David Geraghty noted that the program is a key milestone in the company’s broader strategy to establish a multi-asset gold resource base.
The project, alongside the Lady Lila prospect, forms the foundation of Forrestania’s goal to restart the Lake Johnston processing facility.
At the time of reporting, Forrestania Resources’ share price was $0.45.