Mount Gibson Iron Limited (Mount Gibson or the Company) advises it has reached a binding conditional agreement with Australian gold producer Northern Star Resources Ltd (Northern Star) to acquire Northern Star's 50% interest in the Central Tanami Project Joint Venture (CTPJV) in the Northern Territory of Australia, along with an extensive wholly-owned exploration landholding adjacent to the CTPJV.

Central Tanami Project Joint Venture (CTPJV)

The CTPJV is an unincorporated 50:50 joint venture between Northern Star and ASX-listed gold explorer Tanami Gold NL (Tanami Gold) located approximately 650 kilometres northwest of Alice Springs and encompassing a total landholding of approximately 2,100 sqkm in the Tanami region of the Northern Territory. The CTPJV was initially established in 2015 as a farm-in arrangement and subsequently restructured in 2021 into the current 50:50 arrangement whereby each party is required to contribute its share of expenditure to the joint venture. The objective of the CTPJV is to advance the Central Tanami Gold Project, a highly prospective and underexplored area that is known to be well-endowed with gold mineralisation. In excess of 2 million ounces (Moz) of gold have previously been extracted from the tenements, including approximately 1.3 Moz between 1995 and 2005. The CTPJV includes a non-operating 1.2 Mtpa carbon-in-leach (CIL) processing plant which has been idle since 2005, and the high-grade Groundrush gold deposit which yielded production of more than 600,000oz from a single open pit for Newmont Mining Ltd between 2001 and 2005. In addition, the CTPJV infrastructure assets include existing mine haul roads, an accommodation camp, a water bore field and a 1.4km gravel airstrip.

CTPJV Mineral Resources

The CTPJV (100%) has a reported Mineral Resource estimate of 13.8 Mt grading 3.6 g/t gold for 1.6 Moz of contained gold defined in accordance with the 2012 Edition of the Joint Ore Reserves Committee's Australasian Code for the Reporting of Mineral Resources and Ore Reserves (JORC 2012). The JORC 2012 Mineral Resource estimate comprises 0.78 Moz of gold in the Measured and Indicated categories and 0.82 Moz of gold in the Inferred category. The vast majority of the Mineral Resources (JORC 2012) are located on granted mining leases. The CTPJV also includes historical estimates of mineral resources totalling 11.2 Mt at an average grade of 2.7 g/t gold for approximately 1.0 Moz of contained gold. These historical estimates were reported by Tanami Gold and Northern Star according to the prior JORC 2004 Code. A Competent Person has not yet completed sufficient work to classify these historical estimates in accordance with JORC 2012 and it is uncertain that following further evaluation and/or exploration work that these historical estimates will be able to be reported in accordance with JORC 2012. The CTPJV parties are presently working to update a number of these historic estimates consistent with JORC 2012 standards. Mount Gibson considers there is strong potential to increase the CTPJV Mineral Resource estimates through ongoing resource definition drilling and exploration activities.

Project Development

Work within the CTPJV over the last few years has focused on the Groundrush, Ripcord and Jims deposits, including technical development and scoping studies. Each of these deposits is located on existing mining leases. The Groundrush deposit hosts currently reported Indicated and Inferred Mineral Resources of 7.7 Mt grading 4.3 g/t Au for 1.1 Moz contained gold and is central to future development options within the CTPJV. The Ripcord and Jims deposits host a combined total of 0.2 Moz of gold, with Ripcord comprising Indicated and Inferred Mineral Resources of 0.75 Mt at 2.1 g/t gold and Jims comprising Measured, Indicated and Inferred Mineral Resources totalling 1.6 Mt at 2.4 g/t gold. Mount Gibson considers the CTPJV to have potential for accelerated development and production based on its substantial current Mineral Resource estimates located on granted mining leases, notably at Groundrush, the extensive work conducted to date on technical development studies, and the strong potential to substantially increase resources. The CTPJV parties are currently undertaking drilling at several brownfields targets with a view to further increasing gold resources in the near term.

Mount Gibson Chief Executive Officer Peter Kerr said: 'This acquisition represents a compelling opportunity to enter the gold sector at an attractive price, with the sector having strong fundamentals. Involvement in the Central Tanami Gold Project provides Mount Gibson with an opportunity to leverage the success of its Koolan Island iron ore operation to establish the foundations of a gold production business. 'Given the substantial work that has been undertaken on the project by the CTPJV to date, we intend to work with Tanami Gold to fast track technical studies to position the project for a development decision within the next 12-18 months. We have already commenced the Foreign Investment Review Board application process and look forward to progressing to completion in the coming months. 'In the interim, we will remain a close observer of the work being undertaken in accordance with the joint venture schedule approved by Tanami Gold and Northern Star, including the resource definition drilling programs that are presently underway.'

Contact:

Peter Kerr

Chief Executive Officer

Mount Gibson Iron Limited

Tel: +61-8-9426-7500

(C) 2025 Electronic News Publishing, source ENP Newswire