Citigold and Native Mineral Resources have partnered to explore and potentially mine four tenements near Charters Towers, with Native taking operational control of exploration and possible mining.
- Joint venture covers four mining leases near Charters Towers
- Native Mineral Resources holds exclusive exploration and mining rights
- Costs recovered from smelt proceeds before 50:50 profit split
- Citigold retains ownership and environmental responsibilities
- Mining contingent on proving-up drilling results and approvals
New Joint Venture Targets Charters Towers Expansion
Citigold Corporation (ASX:CTO) and Native Mineral Resources (ASX:NMR) have formalised a joint venture over four mining leases collectively known as the Stockholm Tenements, located about 7km southwest of Charters Towers, Queensland. The leases sit roughly 2km north of Native’s existing Blackjack operations, setting up a strategic opportunity to feed additional material into an established processing plant.
Operational Control and Exploration Rights Granted to Native
Under the agreement, Native Mineral Resources gains exclusive rights to conduct proving-up drilling across the tenements, with sole operational control over exploration and any subsequent mining activities, subject to regulatory approvals. The staged approach allows Native to assess the economic viability of the mineralisation before committing to mining, haulage, and processing through its Blackjack facility.
Financial Terms Include Cost Recovery and Profit Sharing
Costs incurred by Native during exploration and mining, including an 8% margin on specified categories, will be recovered from gross smelt proceeds before any profits are shared. After deducting Queensland mineral royalties and unrecovered costs, remaining surplus is split evenly between Citigold and Native. Citigold remains the registered holder of the tenements and continues to manage environmental and statutory obligations.
Strategic Fit and Future Steps
Citigold’s Executive Chairman Mark Lynch highlighted the joint venture as a practical pathway to unlock additional mineralised material near Charters Towers, leveraging Native’s operational capabilities. Native’s CEO Blake Cannavo echoed this, noting the opportunity to evaluate new feed sources without acquiring tenements outright. The immediate next step is detailed planning for the proving-up drilling program, which will determine whether mining operations proceed.
Bottom Line?
The joint venture offers a low-commitment route for Citigold to potentially monetise nearby resources, but mining hinges on successful drilling results and regulatory approvals.
Questions in the middle?
- Will proving-up drilling confirm economically viable mineralisation at Stockholm?
- How quickly could mining and processing commence if drilling results are positive?
- What impact might this joint venture have on Citigold’s broader Charters Towers strategy?