A subsidiary of Macmahon (ASX:MAH) has been selected as the preferred contractor for a mining services tender at the Central Tanami Project’s Groundrush exploration decline, a joint venture between Tanami Gold (ASX:TAM) and MGX Resources (ASX:MGX), located 650km northwest of Alice Springs.
If discussions progress to a contract signing, the Macmahon subsidiary, Macmahon Underground, could establish portals and vents, as well as develop 3.5km of exploration declines.
Works are expected to begin in the September 2026 quarter and last for 14 months. The deal is worth about $38 million.
“With the completion of the exploration decline and resource definition drilling, we anticipate production mining to commence shortly afterwards, hopefully generating new growth opportunities for our partnership,” Managing Director and CEO Michael Finnegan says.
“This strategic relationship reflects Macmahon’s focus on increasing our underground business’s footprint throughout Australia, and I would like to thank our team for all their efforts.”
MGX earlier acquired half of the joint venture from Northern Star Resources (ASX:NST) for $50 million. MGX also replaced existing bank guarantees worth a combined $5.8 million.
“Work in the near term will focus on defining the development plan, securing relevant approvals, and accelerating development activities,” MGX CEO Peter Kerr says.
“This project represents a substantial transformational opportunity to establish a new long-life Australian gold business in a strongly positive gold price environment.”
The joint venture is touted as one of Australia’s “highest grade” undeveloped gold projects, with current estimated mineral resources of 31 million tonnes (Mt), grading at 2.8 grams per tonne of gold, equivalent to approximately 2.8 million ounces (Moz) of contained gold. This includes 11 Mt grading at 3.3 g/t gold for 1.2 Moz of contained gold in the Groundrush deposit.
Under the transaction terms, MGX has also acquired 3,600km² of wholly owned, granted, and pending exploration tenure in the Central Tanami region of the Northern Territory.
Macmahon is a diversified mining, civil construction, and resources engineering contractor.
Write to Richard Szabo at Mining.com.au
Images: Tanami Gold
