NMR Secures Joint Venture 2km From Blackjack to Expand Feed Supply
Key Takeaways
- NMR has executed a binding JV with Citigold Corporation over four mining leases covering 128 hectares at Charters Towers, located approximately 2km north of NMR's existing Blackjack Operations.
- The agreement requires no tenement acquisition cost — NMR gains exploration access and operational control while Citigold retains registered ownership and statutory responsibilities.
- A staged structure means NMR only commits to mining if proving-up drilling results justify it; if not, the agreement terminates with no further obligation.
- NMR recovers all project costs plus an 8% margin on specified cost categories, with any remaining surplus split 50:50 with Citigold per smelt event.
- Successful drilling could deliver an additional feed source directly into the existing Blackjack processing plant, which has already recorded its strongest monthly throughput on higher-grade material.
NMR secures joint venture foothold 2km from Blackjack operations
Native Mineral Resources (ASX: NMR) has executed a binding joint venture agreement with Citigold Corporation (ASX: CTO) over four mining leases at Charters Towers, Queensland, effective 3 September 2026. The four tenements — ML1424 (Stockholm), ML1430 (Black Jack 4), ML10032 (Stockholm No. 1), and ML10042 (Stockholm No. 2) — cover a combined area of approximately 128 hectares, located roughly 7km southwest of central Charters Towers and ~2km north of NMR’s existing Blackjack Operations.
The deal gives NMR a staged, low-commitment pathway to assess additional mineralised material that, if proving-up drilling succeeds, could feed directly into the existing Blackjack processing plant without requiring NMR to acquire the tenements outright.
Blake Cannavo, Managing Director and CEO, Native Mineral Resources
“The Stockholm joint venture provides NMR with a staged opportunity to assess additional mineralised material close to our Charters Towers operations without acquiring the tenements. We will first complete proving-up drilling before deciding if mining should proceed. If successful, the joint venture could provide an additional source of feed for our Blackjack operations.”
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How the Stockholm JV is structured
The joint venture operates in two phases. First, NMR undertakes a proving-up drilling program to assess whether mineralisation within the tenements supports economically viable mining. Second, following receipt and assessment of final drilling and assay results, NMR may elect whether to proceed with mining operations. If NMR elects not to proceed, the agreement terminates accordingly.
NMR holds exclusive rights to undertake exploration and proving-up drilling, and retains sole operational control over all associated work, including mine planning, contractors, processing, blending, transport, refining, and sale. Citigold remains the registered holder of the JV Tenements and retains responsibility for tenement maintenance, the applicable environmental authority, and relevant statutory obligations.
On the financial side, agreed project costs (including an 8% margin on specified NMR cost categories) are recovered from gross smelt proceeds first. Queensland mineral royalty and any unrecovered costs for both parties are deducted from each smelt event, with any remaining surplus shared equally — 50:50 — between NMR and Citigold. Unrecovered costs carry forward to later smelt events.
| Term | Summary |
|---|---|
| Structure | Unincorporated contractual joint venture over ML1424, ML1430, ML10032, and ML10042 |
| Proving-up phase | NMR holds exclusive right to undertake exploration and proving-up drilling, with sole operational control, subject to the agreement and applicable approvals |
| Cost recovery | NMR recovers costs actually and reasonably incurred, including an 8% margin on specified cost categories; Citigold recovers specified statutory and environmental authority costs |
| Surplus sharing | After deducting Queensland mineral royalty and unrecovered costs, any remaining surplus is shared equally (50:50) between NMR and Citigold per smelt event |
| Tenement ownership | Citigold remains registered holder and is responsible for maintaining tenements in good standing and the applicable environmental authority |
What is a joint venture in the mining context — and why it matters here
An unincorporated contractual joint venture (JV) is an arrangement where two parties share access, costs, and potential upside over a defined asset without forming a new legal entity. In this case, NMR operates and directs all activity, while Citigold retains legal ownership of the tenements. Neither party needs to create a separate company to make it work.
This structure is meaningfully different from an outright acquisition. NMR gains exploration access and a potential future feed supply for Blackjack without the capital outlay, risk, or regulatory complexity of purchasing the tenements itself.
The staged approach adds another layer of discipline. NMR only commits to mining if the drilling results justify it. If they don’t, the agreement terminates.
For NMR shareholders, the key investor-relevant points are:
- Access to approximately 128 hectares of tenements with a historic open pit
- No tenement acquisition cost required
- Existing Blackjack infrastructure could process any mineralised material recovered
- 8% margin on NMR cost categories, plus a 50:50 surplus share on any remaining proceeds
- Full sole operational control retained by NMR throughout
Blackjack plant processing performance has been central to NMR’s recent operational narrative, with the plant already recording its strongest monthly throughput as higher-grade feed material moves through the circuit.
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What comes next for NMR at Charters Towers
NMR will now progress detailed planning for the proving-up drilling program, covering the proposed drilling sequence, contractor requirements, and applicable operational and regulatory arrangements. The Company has stated it will provide further updates as material information becomes available.
NMR’s capital position heading into the proving-up program was bolstered earlier by a convertible note facility with Lind Partners, providing the company with additional working capital runway as it advances multiple fronts across its Charters Towers operations.
Citigold Executive Chairman Mark Lynch framed the mutual rationale clearly:
Mark Lynch, Executive Chairman, Citigold Corporation
“The Stockholm joint venture brings together Citigold’s Charters Towers tenements and NMR’s established operational and processing capabilities. The staged approach allows the parties to first establish the potential of the Stockholm tenement mineralisation through proving-up drilling before committing to mining operations. If the results support development, the joint venture provides a practical pathway to bring additional mineralised material into production for the benefit of both companies.”
If the proving-up program delivers positive results, it could expand NMR’s feed supply for the Blackjack plant and access additional mineralised material in the Charters Towers region. However, the announcement explicitly states there is no assurance that proving-up drilling will support a decision to proceed, or that mining operations will commence. Outcomes remain subject to drilling results, regulatory approvals, and a formal decision by NMR to proceed.
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