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- Major milestone reached with Groundrush exploration portals completed
- Key step in advancing project to development decision
- Initial works under $38 million contract with Macmahon Underground
- Aiming to convert over 400,000 ounces of mineral resources into Indicated category
MGX Resources (ASX: MGX) has marked a significant milestone for the Central Tanami project joint venture (CTPJV) in the Northern Territory with completion of blasting of the Central and ventilation portals for the Groundrush exploration decline.
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“The establishment of the Groundrush exploration decline portals represents a key milestone in the CTPJV’s efforts to advance the project to a development decision and reflects the hard work and coordinated efforts of CTPJV and Macmahon personnel,” MGX chief executive, Peter Kerr, said.
“We and our joint venture partner, Tanami Gold, look forward to sharing further updates as we build momentum towards establishing a new gold production business in the Northern Territory.”
MGX and Tanami Gold NL (ASX:TAM) each hold a 50% interest in the CTPJV which is seeking to advance the project to a development decision in 2027.
Construction of the portals has been undertaken as part of the initial works under a $38 million contract with Macmahon Underground as announced at the end of August 2026. The contract encompasses portal and vent establishment and the initial 3.5km of decline development to a depth of circa 350 metres over a period of 14 months.
The decline will provide underground access for 33,000 metres of infill resource definition drilling into the Groundrush gold deposit.
The objective of the drilling is 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. The infill drilling will commence in the latter stages of the decline construction period.
The CTPJV’s mineral resource estimate (JORC 2012) totals 31.0 million tonnes (Mt) at an average grade of 2.8 grams per tonne gold (g/t Au) for 2.8 million ounces (Moz) of contained gold, including 11.0 Mt at 3.3 g/t Au for 1.2 Moz of gold within the Groundrush gold deposit.
In July 2025, MGX announced an agreement to acquire Northern Star Resources’ 50% interest in the advanced CTPJV and adjacent wholly-owned exploration tenements in the Northern Territory for cash consideration of $50 million.
The transaction was completed in early February 2026.
MGX was steady at 30.0¢ with a Mkt cap of $354.1M prior to markets opening.
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