The Central Tanami Project Joint Venture has awarded Macmahon a $38 million contract to construct an underground decline at the Groundrush Gold Project in Australia’s Northern Territory. The joint venture, owned by MGX Resources and Tanami Gold, is advancing the Groundrush Gold Deposit through new underground mining infrastructure as it works towards a development decision for the project.
Macmahon Secures $38 Million Groundrush Contract
Under the terms of the contract, Macmahon will build an underground decline initially extending 3.5km to a planned depth of 350m. Construction is expected to take 14 months. Surface works at the Groundrush Gold Project are already underway, including the preparation of laydown areas and re-establishment of the in-pit ramp. Macmahon is scheduled to mobilise to site for portal construction in September.
MGX Resources chief executive Peter Kerr said the decline marked an important step in progressing the project. “The commencement of the Groundrush decline represents a key milestone in the CTPJV’s efforts to advance the project to a development decision and ultimate production,” Kerr said. “We and our joint venture partner, Tanami Gold, look forward to sharing regular updates as we build momentum towards establishing a major new gold business in the Northern Territory.”
The Groundrush Gold Project sits within the broader Central Tanami Project, which holds a combined Mineral Resource Estimate of 31 million tonnes at 2.8 grams per tonne gold for 2.8 million ounces of contained gold. The Groundrush Gold Deposit itself accounts for 11 million tonnes at 3.3 grams per tonne gold for 1.2 million ounces of contained gold.
Underground Decline Supports Resource Drilling
The underground decline will provide drilling platforms to support an extensive resource definition drilling programme at the Groundrush Gold Project. Approximately 33,000 metres of drilling is planned, targeting mineralisation to a depth of about 650m. The programme aims to convert more than 400,000 ounces of Inferred Resources into the higher-confidence Indicated category, supporting mine design and development purposes. Underground drilling is expected to begin towards the end of the decline construction period.
Activity is also progressing elsewhere across the Central Tanami site. Resource definition drilling has recommenced at the Jims Gold Deposit, which was previously mined about 25 years ago and is being assessed as a potential expanded open pit ore source to supplement the Groundrush Gold Project. The Jims Mineral Resource currently stands at 2.6 million tonnes at 2.7 grams per tonne gold for 220,000 ounces of contained gold.
Repairs and improvements are underway at the site’s accommodation camp and utilities infrastructure, while recruitment is progressing for key site and project roles. The mining contract awarded to Macmahon represents a significant piece of underground mining infrastructure that will underpin the next phase of resource definition drilling at the Groundrush Gold Project.