The Central Tanami Project Joint Venture (CTPJV), in which Tanami Gold (ASX:TAM) and MGX Resources (ASX:MGX) each hold a 50% stake, has signed a $38 million underground decline construction agreement with Macmahon Holdings (ASX:MAH) subsidiary Macmahon Underground.
Surface works are underway, and in-pit portal construction activities are scheduled to commence in September.
The construction agreement covers portal and vent establishment alongside initial development of the 3.5km Groundrush decline over a 14-month period.
The decline will extend to a depth of 350m to provide underground drilling platforms for 33,000m of resource definition drilling, which will help target the deposit to approximately 650m depth.
Located in the Northern Territory, the CTPJV seeks to convert over 400,000 ounces of inferred resources to the indicated status for mine design and development purposes. Infill drilling is expected to commence towards the end of the decline construction period.
The CTPJV’s mineral resource estimate (MRE) totals 31.0 million tonnes (Mt) @ 2.80 grams per tonne gold (Au) for 2.8 million ounces (Moz) of contained Au. This includes 11.0Mt @ 3.30g/t Au for 1.2Moz within Groundrush.
Tanami Gold and MGX say the CTPJV is working to advance the project to a development decision in 2027.
Elsewhere onsite, resource definition drilling recommenced in June at the Jims gold deposit, which holds an MRE of 2.6Mt @ 2.70g/t Au for 220,000 ounces. Tanami Gold says repairs and improvements are also underway at the adjacent accommodation camp and utilities areas.
MGX chief executive Peter Kerr says the commencement of the Groundrush decline represents a key milestone in advancing the project.
Tanami Executive Director Brett Smitt adds: “Working with our joint venture partner, MGX, both companies continue to progress the project and the establishment of a major new gold operation in the Northern Territory.”
Tanami Gold is a gold explorer and developer while MGX Resources is a mining and project development company. Both are focused on advancing the CTPJV in the NT.
Write to Paula Fabe at Mining.com.au
Images: Tanami Gold
