Citigold Joins NMR in Charters Towers JV to Feed Existing Gold Processing Plant
Key Takeaways
- NMR has signed a binding joint venture with Citigold Corporation (ASX: CTO), effective 3 September 2026, covering four mining leases totalling 128 hectares at Charters Towers, Queensland.
- The Stockholm Tenements sit approximately 2km from NMR's operational Blackjack processing plant, meaning any material that proves up could be hauled and processed through existing infrastructure without a new capital build.
- The deal is structured in two stages: NMR first completes proving-up drilling with sole operational control, then elects whether to proceed to mining — if it elects not to, the agreement terminates.
- Commercial terms split any surplus proceeds 50:50 after deducting Queensland mineral royalty and unrecovered costs, with NMR entitled to an 8% margin on specified cost categories.
- No drilling timeline, budget, or resource estimate has been disclosed — the agreement is entirely conditional on drilling outcomes, and there is no certainty mining will ever commence.
NMR expands its Charters Towers footprint with binding Citigold joint venture
Native Mineral Resources (ASX: NMR) has executed a binding joint venture agreement with Citigold Corporation (ASX: CTO), effective 3 September 2026, covering four mining leases at Charters Towers, Queensland, collectively known as the Stockholm Tenements. The JV Tenements sit approximately 2km north of NMR’s existing Blackjack Operations, creating a practical pathway to feed additional material through an already-operational plant. The structure is deliberately staged: NMR will first complete proving-up drilling before any mining decision is made.
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What the Stockholm joint venture covers
Four tenements, 128 hectares, and a historic open pit
The four JV 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, adjacent to Diamantina Road.
| Tenement | Name | Area (ha) |
|---|---|---|
| ML1424 | Stockholm | 8.425 |
| ML1430 | Black Jack 4 | 117.5 |
| ML10032 | Stockholm No. 1 | 1.197 |
| ML10042 | Stockholm No. 2 | 0.887 |
| Total | 128.009 |
The tenements encompass the historic Stockholm open pit, along with existing rock and topsoil stockpiles and established access roads. That physical infrastructure lowers the practical barriers to commencing a proving-up program.
Importantly, Citigold remains the registered holder of the JV Tenements and retains responsibility for the environmental authority and all relevant statutory obligations. This means NMR gains access to the ground without needing to acquire the tenements outright.
How the joint venture is structured to protect NMR
Staged pathway with NMR in the driver’s seat
The agreement operates in two distinct phases. In the first, NMR holds the exclusive right to undertake proving-up drilling and has sole operational control of that work. In the second, following receipt and assessment of final drilling and assay results, NMR may elect whether to proceed to mining operations. If NMR elects not to proceed, the agreement terminates in accordance with its terms.
NMR’s operational control is broad, covering mine planning, contractors, processing, blending, transport, refining, and sale.
The commercial terms are structured as follows:
- Cost recovery: NMR may recover costs actually and reasonably incurred in connection with proving-up drilling, development, and mining operations. Eligible NMR costs include an 8% margin on specified cost categories, subject to the terms of the agreement. Citigold may recover specified statutory and environmental authority costs attributable to the JV Tenements.
- Surplus sharing: For each smelt event, the Queensland mineral royalty, unrecovered NMR costs, and unrecovered Citigold costs are deducted from gross smelt proceeds. Any remaining surplus is shared equally (50:50) between NMR and Citigold.
- Carry forward: Unrecovered costs carry forward to later smelt events.
No drilling timeline, budget, or resource estimate has been disclosed in the announcement.
Why proximity to Blackjack makes this deal strategically logical
For investors unfamiliar with the term, a proving-up drilling program is a targeted campaign to determine whether mineralisation within a tenement is sufficiently consistent and of sufficient grade to support an economically viable mining decision. The purpose is to gather enough geological evidence before committing capital to full-scale mining infrastructure.
This is where the Stockholm deal becomes particularly interesting. Because the JV Tenements sit approximately 2km from NMR’s Blackjack processing plant, any material that proves up could be hauled and processed through existing infrastructure. NMR would not need to build new processing capacity to bring that material into production.
That matters because processing infrastructure is typically one of the most capital-intensive components of a mining operation. If the drilling results support development, the Stockholm Tenements could represent an additional source of feed for Blackjack at marginal incremental cost rather than requiring a ground-up build.
What both companies are saying
Blake Cannavo, Managing Director & CEO, NMR
“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.”
Mark Lynch, Executive Chairman, Citigold
“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.”
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Next steps for NMR investors to watch
NMR will now progress through the following sequence:
- Detailed planning for the proving-up drilling program, including the proposed drilling sequence, contractor requirements, and applicable operational and regulatory arrangements
- Completion of drilling and receipt of assay results
- NMR’s election whether to proceed to mining operations
- Further ASX updates as material information becomes available
Investors should note the agreement is conditional on drilling outcomes. There is no certainty that the proving-up drilling will support a decision to proceed, or that mining operations will ultimately commence.
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