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Macmahon Holdings (ASX:MAH) has executed a letter of intent with Wolfram for the restart of operations at the Mount Carlton gold mine in Queensland. The mining construction specialist has signed up to provide surface and underground mining and civil infrastructure services under the scope of the letter.
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Macmahon MD and CEO, Michael Finnegan, said the parties are in negotiations on the terms of a contract, which should have an initial term of 33 months.
The total value of works, once the contract is executed, will be ~$250 million.
Early works, including the repair and maintenance of the mine access road, have already commenced under the terms of the LoI.
The restart of the Mount Carlton surface mine is expected to commence in April CY26, with underground mining to then follow shortly thereafter.
“We are delighted to be working closely with Wolfram and Bumi Resources on the restart of the Mount Carlton gold mine,” Mr Finnegan said.
“We welcome this strategically important opportunity to demonstrate how effectively Macmahon’s businesses, surface and underground mining, and civil infrastructure, combine to deliver a comprehensive and seamless ‘whole of mine’ solution to our valued client.”
The Mount Carlton gold mine is a high-grade epithermal mine producing gold, silver, and copper. Following a voluntary administration in CY23, it is now being restarted by Wolfram, a subsidiary of Bumi Resources, which is targeting a return to commercial production by as soon as mid-CY26.
Mount Carlton, ~150 kilometres south of Townsville in North Queensland, has an existing mineral resource estimate of 10.5 million tonnes at 1.39 grams per tonne gold equivalent for 470,000 ounces gold equivalent.
The North Queensland project has significant upside with high-grade gold extensions and a one-kilometre vein trend, which is yet to be drilled.
There are also drill-ready targets within the old mine and near the existing pit.
MAH is steady at 58.5c today.
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