CTPJV Commences $38M Groundrush Decline to Unlock 400,000oz Gold Upgrade
Tanami Gold’s Central Tanami Project Joint Venture has inked a $38 million contract with Macmahon to build a 3.5km underground decline, setting the stage for a major resource upgrade and development decision in 2027.
- Signed $38 million contract with Macmahon for Groundrush decline
- 3.5km underground decline to 350m depth over 14 months
- 33,000m infill drilling to convert 400,000oz from Inferred to Indicated
- Resource drilling resumed at Jims Gold Deposit with 220,000oz resource
- Site infrastructure upgrades underway to support development
Groundrush Decline Contract Finalised with Macmahon
The Central Tanami Project Joint Venture (CTPJV), equally owned by Tanami Gold (ASX:TAM) and MGX Resources, has formalised a $38 million agreement with Macmahon Underground Pty Ltd to construct the Groundrush underground decline in the Northern Territory. The contract covers portal and ventilation setup plus the initial 3.5-kilometre decline development to a depth of approximately 350 metres, with works scheduled over 14 months.
Surface preparation is already progressing, including re-establishing in-pit ramp access, with Macmahon mobilising to site for portal construction starting September. This decline is a critical infrastructure piece enabling underground drilling platforms for an extensive 33,000-metre infill drilling campaign targeting the Groundrush Gold Deposit.
Drilling to Upgrade Over 400,000 Ounces of Gold Resources
The planned drilling aims to convert more than 400,000 ounces of gold currently classified as Inferred Resources into the higher-confidence Indicated category. This upgrade is essential for detailed mine design and development planning ahead of a targeted project development decision in 2027. The Groundrush deposit itself holds 11 million tonnes at 3.3 grams per tonne gold for 1.2 million ounces within the CTPJV’s total 2.8 million-ounce resource base.
Underground drilling will commence from platforms constructed within the decline’s latter stages, extending resource definition down to approximately 650 metres. This phase is crucial for refining the mine plan and underpinning future production forecasts.
Jims Gold Deposit Drilling and Site Upgrades Underway
Beyond Groundrush, the CTPJV is advancing resource definition drilling at the Jims Gold Deposit, a historically mined site with a current resource estimate of 2.6 million tonnes at 2.7 grams per tonne for 220,000 ounces. This deposit offers potential to supplement open pit ore feed, diversifying the project’s resource base.
Simultaneously, significant repairs and upgrades are ongoing at the site’s accommodation and utilities infrastructure, essential to support the ramp-up in underground operations and drilling activities.
Strategic Milestone for Central Tanami Project
Tanami Gold’s Executive Director Brett Smith described the commencement of the Groundrush decline as a “key milestone” in advancing the CTPJV’s development ambitions. The collaboration with MGX continues to push the project closer to establishing a major new gold operation in the Northern Territory, with the development decision anticipated in 2027.
Bottom Line?
The Groundrush decline contract marks a pivotal step towards unlocking significant resource upgrades, but the timeline for drilling results and final investment decision will be critical to watch.
Questions in the middle?
- How quickly will the infill drilling convert Inferred Resources to Indicated status?
- What impact will the Jims Gold Deposit have on overall project economics?
- Will infrastructure upgrades keep pace with underground development demands?
