Key Highlights

  • Native Mineral Resources (ASX:NMR) has signed a binding joint venture with Citigold over 40 tenements at Charters Towers, Queensland, effective 7 November 2026.
  • NMR has exclusive rights to exploration and proving-up drilling, and a decision to mine will follow assessment of the final drilling results.
  • Eligible NMR costs are recovered from gross smelt proceeds with an 8% Margin before any surplus is shared equally with Citigold.
  • A one-off A$5 million production payment is due to Citigold once 8,000 ounces of gold have been produced from the joint venture tenements.

Native Mineral Resources Holdings Limited (ASX:NMR) announced on 9 November 2026 that it has signed a joint venture agreement with Citigold Corporation (ASX:CTO) covering 40 tenements in and around Charters Towers. The agreement brings the Central, Warrior and Stockholm areas under a single contractual structure and is linked to NMR’s existing Blackjack processing operations, all within 10 kilometres of the project area.

Tenement Package and Resource Base

The package includes 30 granted Mining leases, one Lease application, four Mineral Development Licences and five Exploration Permits for Minerals. The release says the permits and licences cover more than 20,500 hectares of ground around Charters Towers, giving NMR exclusive exploration access beyond the mining leases.

Citigold’s reported Mineral Resources for the area include 3.1 million tonnes at 7.6 grams per tonne of gold for 764,000 ounces in the Indicated category. The Inferred category is far larger at 26.5 million tonnes, which the release says equates to about 11.5 million ounces. Around 94% of the contained ounces sit in the Inferred category, which the company notes carries low geological confidence.

A Staged Path With Cost Recovery

NMR will carry out proving-up drilling first and then decide whether to proceed to mining. No upfront consideration is payable by either party, and the agreement is not subject to conditions precedent. If NMR decides not to proceed, the agreement terminates with neither party holding a claim against the other.

If mining goes ahead, NMR may recover drilling, development, mining, processing and financing costs, plus an 8% margin, from gross smelt proceeds. The Queensland mineral Royalty and unrecovered costs are deducted first, and the remaining surplus is shared equally. Citigold receives its production payment on top of its surplus share.

Risks and Open Questions

The company states there is no assurance that proving-up drilling will support a decision to mine, or that mining will begin. Citigold has not drilled the area since 2016, and the release notes that several leases are not covered by the current environmental authority, meaning mining on those tenements would need a separate or amended approval.

Citigold has not provided an Indemnity for pre-existing environmental liabilities, and the parties will deal with those liabilities as part of the joint venture. The announcement also notes that NMR may suspend or defer operations for commercial or operational reasons.

Final Word

The agreement gives NMR a defined, staged route to test additional ground near its processing plant, with cost recovery built into the structure. The economic outcome depends on drilling results that have not yet been produced, and on the conversion of a largely Inferred resource into mineable ore. The next milestones are the proving-up program and its results.