NMR Faces Regulatory and Operational Hurdles as Charters Towers Restart Nears

Renewed Tenure and Regulatory Compliance

Native Mineral Resources Holdings Limited (ASX: NMR) has taken decisive steps to secure its operational footprint in Queensland by lodging renewal applications for all expired or expiring mining leases and exploration permits across its Charters Towers Gold Project. This ensures continuity of tenure for the company’s flagship gold assets, including the Blackjack and Far Fanning sites. Alongside this, NMR has met all financial obligations to relevant Queensland government departments and is actively resolving outstanding land use and rates issues with local authorities, underscoring its commitment to regulatory alignment.

Blackjack Processing Plant Refurbishment and Upgrades

The Blackjack Processing Plant, a central asset within the Charters Towers portfolio, is undergoing a comprehensive refurbishment program. Structural audits by Ausenco have been completed, with remedial works underway to ensure plant integrity. Key mechanical upgrades include ordering a new pinion and girth gear for the ball mill, refurbishing the hydraulic lube pack, and installing new elution heaters and electrowinning equipment. Conveyor systems and crusher controls have also been overhauled. These efforts have advanced to pre-commissioning stages, with crushing and screening areas already operational and safety system enhancements in progress.

Environmental and Tailings Storage Facility Progress

Environmental compliance remains a priority, with ongoing monitoring of hydrogeology, ecological impact, and waste management at Blackjack and Far Fanning. NMR is progressing amendments to its Environmental Authority to facilitate a planned tailings storage facility (TSF) wall lift, with geotechnical investigations scheduled to inform final engineering designs. The company has submitted its Estimated Rehabilitation Cost and Progressive Rehabilitation and Closure Plan, currently in the regulator’s review phase, aiming for completion ahead of the September 2025 deadline.

Resource Definition and Drilling Campaigns

On the exploration front, NMR completed a 12-hole diamond drilling program at Blackjack in early April, with assays underway to refine geological models and support mine planning. This was promptly followed by a Reverse Circulation (RC) drilling campaign to further define resources. MEC Mining has contributed updated mineral resource estimates and pit optimisation studies, advancing ultimate pit design and production scheduling. Meanwhile, Far Fanning remains a longer-term prospect, with historical high-grade stockpile sampling confirming potential for future development.

Capital Raising and Corporate Developments

To fund these ambitious programs, NMR successfully raised $15.9 million through a non-renounceable entitlement offer and shortfall placement, including a substantial $6.8 million contribution from entrepreneur Wes Maas. The capital injection is earmarked for the Blackjack restart program, encompassing plant refurbishment, resource drilling, and infrastructure upgrades. Additionally, shareholders recently approved a $1.2 million convertible note facility from Managing Director Blake Cannavo, providing further financial flexibility. The company’s cash position stood at approximately $2.67 million as of 31 March 2025.

Looking Ahead: Commissioning and Production Restart

Mechanical completion of the Blackjack Processing Plant is targeted for late Q2 2025, with commissioning activities set to commence immediately thereafter. NMR remains on track to restart gold production in Q3 2025, a milestone that could mark a transformative phase for the company. Preparations for the TSF upgrade and ongoing stakeholder engagement continue in parallel, ensuring operational readiness and compliance. While exploration at the Palmerville Copper and Maneater Hill projects remains in planning stages, the primary focus is clearly on delivering value from the Charters Towers assets.