Highlights

  • MGX Resources (ASX:MGX) has reported on the September 2026 quarter, describing a shift in focus from iron ore towards gold.
  • The existing Jims resource is 2.6 million tonnes at 2.7 grams per tonne gold for 220,000 ounces.
  • The partners aim to reach a development decision within 12 months; that is a target, not a decision.
  • Four final low-grade cargoes totalling 0.3 million wet tonnes shipped in July, ending the programme.

MGX Resources (ASX:MGX) has reported on the September 2026 quarter, describing a shift in focus from iron ore towards gold. The central development is the start of work on the Groundrush decline at the Central Tanami Project Joint Venture in the Northern Territory, in which MGX holds 50%, while the Koolan Island iron ore operation in Western Australia completes its final shipments.

Central Tanami Progress

MGX bought its 50% interest and adjacent exploration tenements from Northern Star Resources in February 2026 for $50 million in cash. Its partner is Tanami Gold NL. On 31 August 2026 the joint venture signed a $38 million contract with Macmahon Underground for portals, ventilation and about 3.5 kilometres of decline to roughly 350 metres depth over 14 months. Macmahon mobilised in September. The first blast into the ventilation portal is complete, and the company says the main portal blast was due in the following weeks.

Underground infill drilling of about 33,000 metres is planned to start from the later stages of decline construction in 2027, aiming to convert more than 400,000 ounces of Inferred resource to Indicated. At the Jims deposit, 13,900 metres of RC drilling in 95 holes was completed in mid-September and diamond drilling began, with three holes totalling 639 metres finished by quarter-end. RC results are being processed, with release expected in the December quarter. The existing Jims resource is 2.6 million tonnes at 2.7 grams per tonne gold for 220,000 ounces.

The joint venture resource is 31 million tonnes at 2.8 grams per tonne for 2.8 million ounces, of which MGX's share is 1.4 million ounces. MGX's 50% share of quarterly spend was $14.7 million. The partners aim to reach a development decision within 12 months; that is a target, not a decision.

Koolan Island And The Crestlink Sale

Four final low-grade cargoes totalling 0.3 million wet tonnes shipped in July, ending the programme. Quarterly sales were 319,000 wet tonnes at US$32 per dry tonne, producing a positive cash flow of $0.3 million after $7.7 million of rehabilitation spending. Controlled flooding of the Main Pit began on 24 October and the pit reached sea level on 28 October.

Under the agreement to divest Koolan to Crestlink, MGX would receive upfront and deferred payments of at least $20.2 million plus a revenue share of up to $5 million, and Crestlink would assume remaining rehabilitation obligations estimated at about $30 million. FIRB and ACCC approvals have been received, and settlement is targeted for late 2026 or early 2027. MGX retains an insurance claim for the October 2025 rockfall; it has received $9 million from one insurer, and the amount of any further recovery is uncertain.

Financial Position

Cash and investments were $408.7 million at 30 September, from $412.1 million at 30 June, with no bank borrowings. The group's net cash outflow was $5.1 million. MGX also holds an equity portfolio of about $67.0 million, including stakes in Fenix Resources, AIC Mines and Maronan Metals.

Risks And Conditions

Settlement of the Crestlink sale has not occurred. A development decision at Central Tanami depends on drilling, metallurgical testwork and engineering studies, and the planned 1.5 million tonnes a year plant throughput is subject to testwork and drilling updates. Figures are unaudited.

Dates

The company gave a teleconference on 29 October 2026 and an annual general meeting in Perth on 18 November 2026. Other milestones are the main portal blast, Jims RC results in the December quarter, Crestlink settlement in late 2026 or early 2027, infill drilling from 2027 and a development decision within 12 months.