Macmahon Unit Selected as Preferred Mining Contractor for Northern Territory Gold Deposit

-- The Central Tanami Project Joint Venture, in which both MGX Resources (ASX:MGX) and Tanami Gold (ASX:TAM) hold a 50% interest, selected a unit of Macmahon Holdings (ASX:MAH) as the preferred mining contractor for the construction of the exploration decline at the Groundrush gold deposit in the Northern Territory, according to separate filings with the Australian bourse on Tuesday.

Macmahon Underground will conduct around 3,500 meters of exploration decline development and portal and vent establishment, with the work valued at around AU$38 million. The work is expected to start in the September quarter and extend for a 14-month period.

The appointment of Macmahon remains subject to finalization and execution of a binding agreement.