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Mount Gibson (ASX:MGX) is buying into the Central Tanami Gold Project and its exploration tenements after signing a $50 million deal with Northern Star Resources (ASX:NST) and its junior sidekick, Tanami Gold (ASX:TAM).
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The Central Tanami joint venture encompasses 2,100 square kilometres of tenements in the Northern Territory as well as a 1.6Moz JORC gold resource from 2012.
The majority of those mineral resources are on granted mining leases, including the high-grade “Goldrush” deposit 45km northeast of the mill site.
Tanami also has a 1.2Mtpa processing plant on location (though it isn’t operating).
The $50M deal gives Mount Gibson – which shares a common major shareholder with Tanami Gold – a “dominant land position in a major established gold region” that boasts a history of substantial gold production.
For Mount Gibson, the deal was a no-brainer since it moves them into gold “at an attractive price” at a time when the precious metal is in hot demand.
“Involvement in the Central Tanami Gold Project provides Mount Gibson with an opportunity to leverage the success of its Koolan Island iron ore operation to establish the foundations of a gold production business,” the company’s CEO, Peter Kerr, explained after unveiling the joint venture buy-in.
The deal will go through after the extension of existing infrastructure arrangements by the Central Land Council. Mount Gibson needs to clear FIRB approval, too.
Tanami will also need to elect not to exercise its first right of refusal by March 2026.
Once everything is wrapped up on the stake sale side, Mount Gibson then plans to “fast-track” technical studies in a bid to prepare the Central Tanami project for a development decision in as soon as 12 to 18 months.
“Given the substantial work undertaken on the project by the CTPJV to date, we intend to work with Tanami Gold to fast-track technical studies,” Mr Kerr said.
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“In the interim, we will remain a closer observer of the work undertaken in accordance with the joint venture schedule approved by Tanami and Northern Star, including the resource definition drilling program presently underway.”
MGX has quickly climbed to 32.5cps in morning trade. TAM is up +3.28%.
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