Tanami Gold's Central Tanami Project Joint Venture has chosen Macmahon as preferred contractor for a $38 million underground exploration decline at Groundrush, aiming to kick off construction in September 2026.
- Macmahon selected for 3,500m underground decline at Groundrush
- Contract valued at approximately $38 million over 14 months
- Decline to support resource infill drilling and development
- Work expected to start in September 2026
- Tanami Gold holds 50% interest in joint venture with MGX Resources
Macmahon Secures Major Underground Contract at Groundrush
Tanami Gold NL (ASX:TAM) has confirmed that the Central Tanami Project Joint Venture (CTPJV) has selected Macmahon Underground Pty Ltd, a subsidiary of Macmahon Holdings Limited (ASX:MAH), as the preferred contractor for the construction of an underground exploration decline at the Groundrush Gold Deposit in the Northern Territory.
The contract, valued at about $38 million, covers the establishment of the portal and ventilation infrastructure, followed by approximately 3,500 metres of decline development. Work is slated to begin in the September 2026 quarter and is expected to span 14 months, setting the stage for underground resource infill drilling to commence towards the end of this period.
Strategic Step in Central Tanami Project Development
This development represents a crucial phase for the CTPJV, which is equally owned by Tanami Gold and MGX Resources Limited. The underground decline will facilitate more detailed resource drilling from underground positions, an essential step to refine the deposit's geological model and accelerate mine development.
The Groundrush deposit is part of a broader 2.8 million ounce gold resource within the Central Tanami Project, which has been progressing steadily towards production. Earlier this year, the joint venture announced significant resource upgrades and drilling successes that underpin the project’s advancing status, including plans to upgrade existing milling infrastructure to support increased throughput. These milestones provide context for the importance of advancing underground access at Groundrush to maintain momentum towards production timelines.
While the contract award is subject to final binding agreement execution, the appointment of Macmahon signals confidence in the contractor’s underground mining expertise and aligns with the joint venture’s development schedule. Macmahon’s involvement also reflects a broader trend of established mining services companies securing key roles in Australia’s underground gold projects.
Implications for Project Timelines and Capital Deployment
The $38 million contract adds a significant capital component to the project’s development phase, marking a transition from surface exploration to underground infrastructure build-out. This phase is critical to unlocking the next tranche of drilling data and ultimately feeding into mine planning and production scheduling.
Investors will be watching how the decline construction progresses against the planned timeline, as delays or cost overruns could affect the broader project development schedule. The joint venture’s ability to convert inferred resources into indicated categories through underground drilling will be key to underpinning future mine life and reserve statements.
Tanami Gold’s recent announcements have highlighted a steady build-up of resource confidence and operational readiness, with the Groundrush decline contract representing the next tangible step in converting exploration success into mine development. The partnership with Macmahon, an experienced underground contractor, may also provide operational efficiencies and risk mitigation during this complex construction phase.
Bottom Line?
The Groundrush decline contract marks a pivotal shift from exploration to development, setting a timeline that will test the joint venture’s execution capabilities and influence future resource confidence.
Questions in the middle?
- Will the decline construction adhere to the 14-month schedule without cost overruns?
- How will underground drilling results from the decline impact resource classification and mine planning?
- What are the potential operational risks associated with transitioning to underground development at Groundrush?