Central Tanami Project Faces Approval Hurdles Ahead of Planned 2026 Production

A Significant Step Forward for Central Tanami

The Central Tanami Project (CTP), a 50 – 50 joint venture between MGX Resources Limited and Tanami Gold NL, is making notable progress towards becoming a producing gold operation. With a combined Mineral Resource Estimate (MRE) of 2.8 million ounces of gold, the project consolidates multiple deposits including Groundrush, Carbine, Hurricane/Repulse, Jims, and Ripcord, all located within a 40-kilometre radius of an existing processing mill.

This sizeable resource base is underpinned by a history of mining success in the region, with approximately 2 million ounces produced since the 1980s. Groundrush alone has yielded over 600,000 ounces at an impressive grade of 4 grams per tonne, demonstrating the quality of the ore bodies involved.

Infrastructure and Development Plans

Central to the project’s advancement is the refurbishment and upgrade of the existing 1.2 million tonnes per annum (Mtpa) carbon-in-leach (CIL) mill, which has been on minimal care and maintenance since 2005. The joint venture plans to enhance this facility to a 1.5 Mtpa capacity, leveraging existing haul roads, a gravel airstrip, and camp facilities that are largely maintained and ready for refurbishment.

Exploration and resource development remain a priority, with targeted drilling programs focused on converting 430,000 ounces of inferred resources to the more certain indicated category. This includes a proposed 3.4-kilometre underground exploration decline at Groundrush, designed to facilitate infill drilling down to 370 metres below surface. The JV has progressed through a Tier-1 contractor tender process, aiming for a mid-2026 construction start, pending joint venture approvals.

Resource Quality and Metallurgical Insights

The resource estimates adhere to the Australasian JORC Code 2012 standards, with cut-off grades reflecting economic viability at a gold price of A$3,500 per ounce. The deposits are predominantly free milling, suitable for CIL processing, with recoveries around 90-95%. Some deposits contain refractory material requiring concentrate production for export, which has been factored into cost and recovery assumptions.

Recent drilling results have been encouraging, with multiple high-grade intercepts reported across key deposits, reinforcing the potential to expand and upgrade the resource base. The JV’s ongoing metallurgical and geotechnical testwork aims to optimise mine design and scheduling, while environmental and government approvals are being updated in parallel with engineering studies.

Financial and Strategic Positioning

MGX Resources and Tanami Gold NL bring complementary strengths to the JV, with market capitalisations of approximately $513 million and $123 million respectively, and no bank debt reported. The joint venture structure allows both parties to share risks and rewards equally as they advance the project through critical development milestones.

With 52 known deposits across the 2,108 square kilometre tenement area, the Central Tanami Project holds significant upside potential beyond the current resource base. Its strategic location near established infrastructure and proximity to Newmont’s world-class Callie operations further enhances its appeal.

Looking Ahead

As the CTP JV moves towards production, the market will be watching closely for updates on drilling results, JV approvals, and the commencement of construction. The project’s success could mark a meaningful addition to Australia’s gold production landscape, but it remains subject to the usual operational and market risks inherent in mining ventures.