MGX Resources has significantly expanded its mineral resource base through its February 2026 acquisition of a 50% interest in the Central Tanami Project Joint Venture, marking a strategic pivot toward gold development. The company now reports total gold mineral resources of 31.0 million tonnes grading 2.8 grams per tonne gold for 2.8 million ounces of contained gold on a 100% basis, with MGX’s attributable share representing 1.4 million ounces. This marks the first inclusion of CTPJV resources in MGX’s annual mineral resources statement and represents a material shift in the company’s portfolio as it transitions away from iron ore.
The Koolan Island iron ore operation, which previously formed the company’s primary asset base, has undergone a significant contraction. Remaining iron ore mineral resources now total 3.3 million tonnes grading 59.3% iron, down from 9.7 million tonnes at 63.2% iron reported in the prior year. The decline reflects mining depletion in the lead-up to an October 2025 rockfall in the Main Pit, which prompted a strategic shift toward monetising available low-grade stockpiles. The company holds no ore reserves at Koolan Island, having depleted its previously reported 4.1 million tonnes of reserves.
MGX’s trajectory at Koolan Island is now defined by its June 2026 binding agreement to divest the operation to Crestlink Koolan Pty Ltd, a specialist logistics proponent. Settlement is targeted for late 2026, though the company notes this timing may extend to the end of March 2027 if necessary. Once the transaction settles, MGX will no longer hold iron ore mineral resources and will be positioned as a junior gold developer focused entirely on the Central Tanami Project.
The CTPJV partnership with Tanami Gold NL represents MGX’s strategic focus going forward, with the company committed to progressing the project toward a development decision in the shortest possible timeframe. The resource base of 2.8 million ounces of contained gold, while modest by major producer standards, provides a foundation for a potential mid-tier operation should development proceed. The grade of 2.8 grams per tonne sits within acceptable parameters for open-pit gold mining economics in Australia.
Investors should monitor progress on the Koolan Island divestment, as timing could influence MGX’s financial position and the pace at which it can fund CTPJV development activities. Announcements from Tanami Gold NL regarding project development plans and feasibility studies will be material to assessing the timeline and cost structure of potential gold production. This announcement is price sensitive and has been flagged as material by the ASX.
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About MGX Resources Limited (ASX: MGX)
MGX Resources Limited is an Australian mining company that primarily operates the Koolan Island hematite iron ore mine in Western Australia’s Kimberley region, with over 40 million tonnes of export history. The company is diversifying into precious and base metals exploration, including a 50% stake in the Central Tanami Gold Project in the Northern Territory, while maintaining exploration activities across Western Australia’s Mid-West and Gascoyne regions.
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