Native Mineral Resources on track to restart gold production at Charters Towers assets

Native Mineral Resources (ASX: NMR) has confirmed the planned restart of gold production at its Charters Towers assets in north Queensland remains on track despite recent extreme weather conditions in the region.

The company said it had progressed site establishment at the Far Fanning mine, with new administration facilities, cabling, plumbing, fencing, computing infrastructure and furnishings completed.

The installation of site access control and turnstiles is on schedule for completion next month.

Blackjack refurbishments

Native Mineral Resources is also conducting extensive refurbishments across key areas of the Blackjack processing plant including the crushing circuit, conveyor belts, ball mill and gold room.

The company mobilised measurement specialists earlier this month to assess the mill’s pinion and girth gear, with the procurement of replacement parts now underway.

It has completed electrical upgrades and a comprehensive high-voltage site inspection of seven transformers, with remediation work scheduled for March.

The company is in discussions with Ergon Energy as part of the pathway to connecting power to the site and temporary power generators have been sourced for use in the interim.

First gold pour

Managing director Blake Cannavo said the company remained on track to achieve first gold pour at Charters Towers later this year.

“Despite facing extreme weather conditions over recent months, we have demonstrated resilience and commitment in keeping the Blackjack refurbishment on schedule,” he said.

“Our investor engagement, fundraising, regulatory compliance efforts and steady progress in site establishment and plant refurbishment underscore our dedication to delivering this project successfully.”

Capital raising

The company advised earlier this week that it had received firm commitments in a $15.9 million entitlement offer and shortfall placement to fund the Charters Towers restart.

The work will include an 18-hole diamond drilling program at the Blackjack gold deposit to confirm the results of historic exploration.

Australian entrepreneur and head of industrial services and investment business Maas Group Holdings (ASX: MGH) Wes Maas agreed to invest $6.8m into the raising.

Investor confidence

“Securing this equity to fund our gold production restart plans is a testament to the quality of our Queensland assets and investor confidence in our team to deliver on this goal,” Mr Cannavo said.

“We continue on our path of rapidly transforming Native Mineral Resources from an explorer to a near-term producer as we move closer to joining the ranks of Australian gold producers.”

Work continues on the design of the company’s proposed tailings storage facility and is targeted for completion in the second quarter of 2025.