MGX Resources has completed the acquisition of a 50 per cent interest in the advanced Central Tanami gold project in the Northern Territory, one of Australia’s highest-grade undeveloped gold projects.
MGX Resources paid AU$50 million to Northern Star Resources Ltd., giving it access to 3,600 square kilometres of granted and pending exploration tenements in the Central Tanami region and a 1.2 Mtpa carbon-in-leach processing plant.
MGX CEO Peter Kerr said: “Work in the near term will focus on defining the development plan, securing relevant approvals and accelerating development activities.
“This project represents a substantial transformational opportunity to establish a new long-life Australian gold business in a strongly positive gold price environment.”
Tanami Gold NL retains the other 50 per cent stake in the Central Tanami project.
The project hosts a mineral resource of 13.8 million tonnes at 3.6 grams per tonne of gold for 1.6 million ounces of contained gold.
There is a strong potential to increase the resource base through further resource definition and exploration drilling.
The acquisition gives MGX Resources an attractive near-term development project that is complementary with its pursuit of other investment opportunities to build a successful multi-commodity metals producer in Australia.
MGX Resources considers the deal as a first step in building a precious metals production base.