Tanami Gold lifts Resources and Reserves
THE DRILL SERGEANT: Australian gold producer Tanami Gold increased its company-wide gold Resources and Ore Reserves across both of its operational centres as production at the Central Tanami project moves towards commencement.
Recent drilling at the company’s flagship Groundrush deposit has resulted in a maiden Mineral Resource of 203,000 ounces gold and a Mineral Reserve of 48,400 ounces gold.
“Due to time constraints on some assays, only 2 of the 13 holes drilled to date were included within the new Reserve and Resource,” Tanami Gold said in an announcement.
“Given this, there is excellent potential for further growth in both Reserves and Resources with a number of wide-high grade drill intersections yet to be included in the Resources, including diamond hole GD 0008 which reported 4.35metres at 159.50 grams per tonne and 9.5 metres at 38.8 grams per tonne.
“An extensive and focused surface diamond drilling program is planned to target known extensions to the mineralisation, which remains open along strike in both directions and at depth.”
Tanami announced a further substantial increase in its gold Mineral Resources, with total Measured, Indicated and Inferred Mineral Resources increasing to 2.30 million ounces of gold from 23.7 million tonnes grading 3.0 grams per tonne.
The updated Mineral Resource represents a 12 per cent increase in total Resource ounces compared with the December 2010 Mineral Resources estimate of 21.3Mt at 3g/t for 2.03 million ounces, which the company announced in February.
The latest increase also includes a 17% increase in the Mineral Resources at Tanami’s 100%-owned Central Tanami project in the Northern Territory, providing encouragement for it plans to commence production at the project in 2012.
The company expects the Central Tanami project will form a second substantial production hub alongside its existing 40-50,000 ounce per annum Western Tanami Operations.
The latest Central Tanami project Resources estimate has resulted in total Measured, Indicated and Inferred Resources of 1.75 million ounces of gold from 20.9 million tonnes grading 2.6g/t (see Table 6).
Within the total new Resources, 1.3 million ounces, or approximately 75%, classified as Measured or Indicated.
“The latest upgrade of Resources and Ore Reserves represent key milestones for the company, enabling it to focus on completing the Central Tanami project Feasibility Study with the aim of commencing gold production at the Central Tanami project by mid-2012,” Tanami Gold managing director Graeme Sloan said in the announcement.
“Particularly pleasing is that within four months of announcing updated Resources in February 2011, we have further increased Resources by more than 12 per cent and announced a total Ore Reserve of 402,000 ounces of gold for both our key operational hubs, the Western and Central Tanami.
“Achieving this level of Resource growth over such a short period highlights the enormous potential of the Central Tanami Project area – especially at Groundrush, where timing constraints resulted in the inclusion of just two of thirteen diamond drill holes from the current drill program within the maiden Resource of 203,000 ounces of gold.
“Add to this the recent grant of two large Exploration Licences, which opens up approximately 100 kilometres strike of the highly prospective Mt Charles Formation, and you can understand why the company is confident the Central Tanami project will deliver increasing Resources, Reserves and gold production.
“A ramp-up in drilling is currently underway for Resource to Reserve conversion, to drill test extensions to known mineralisation, and to drill test numerous new targets.”