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MGX Resources has accelerated its transition towards gold development, as it prepares to exit its Koolan Island iron ore operation and construct the Groundrush decline at the Central Tanami project in the Northern Territory.
The company confirmed in its September quarterly report that Macmahon Underground had mobilised to the Central Tanami site following the award of a $38 million construction contract in August.
The 14-month program will establish the initial 3.5km of underground decline development, providing access for resource definition drilling and advancing early mine infrastructure.
Underground drilling is expected to commence in 2027, with approximately 33,000m planned to support the potential conversion of more than 400,000 ounces of inferred gold resources into the higher-confidence Indicated category.
MGX holds a 50 per cent interest in the Central Tanami Project joint venture alongside Tanami Gold, having acquired its stake from Northern Star Resources in February.
The project hosts a mineral resource of 2.8 million ounces, with MGX’s attributable share standing at 1.4 million ounces.
Exploration also progressed at the Jims deposit, where 13,900m of reverse circulation drilling was completed during the quarter, followed by the commencement of diamond drilling.
Results are being compiled and assessed, with the joint venture working towards a potential project development decision within the next 12 months.
Meanwhile, MGX completed its final low-grade iron ore shipments from Koolan Island in July, bringing almost two decades of production to an end.
Rehabilitation activities are largely complete, with the proposed sale to Crestlink targeted for late 2026 or early 2027.
The company reported cash and investment reserves of $408.7 million at quarter-end, with no bank borrowings.
MGX chief executive officer Peter Kerr said the company’s financial position would support its next phase of development.
“With robust cash and investment reserves and no bank borrowings, MGX is one of the few prospective gold developers with the capability to self-fund its growth ambitions,” he said.
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