Key points
- MGX Resources and Tanami Gold sign a $38M agreement with Macmahon Holdings Ltd for underground decline construction.
- The decline will extend 3.5km to a depth of 350m, facilitating future drilling.
- The project aims to convert over 400,000 ounces of Inferred Resources to Indicated status.
Full summary
MGX Resources Limited and Tanami Gold NL have signed a formal agreement with Macmahon Underground Pty Ltd, a subsidiary of Macmahon Holdings Limited, for the construction of an underground decline into the Groundrush Gold Deposit at the Central Tanami Project Joint Venture (CTPJV) in the Northern Territory. The agreement, valued at approximately $38 million, includes the establishment of a portal and vent, as well as the initial 3.5km of decline development to a depth of circa 350 metres over a period of 14 months. The project aims to convert over 400,000 ounces of mineral resources currently classified as Inferred into the higher confidence Indicated category for mine design and development purposes. Underground drilling activities will commence from constructed drilling platforms in the latter stages of the works and will enable resource definition drilling of the Groundrush Gold Deposit to a depth of approximately 650 metres.