Tanami hit further high-grade gold

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THE DRILL SERGEANT: Perth-based Australian gold producer Tanami Gold has continued its run of encouraging results from an ongoing diamond drilling program at its 100%-owned Central Tanami project in the Northern Territory.

The latest round of drilling has continued to define gold mineralisation beneath and adjacent to the historic Groundrush open pit, which produced more than 600,000 ounces of gold between 2001 and 2004 at a recovered grade of 4.3 grams per tonne gold.

The results Tanami has received over recent month has given Tanami confidence it will be able to provide the market with a Resource update later this year in line with completion of the Central Tanami Feasibility Study.

There have been 24 holes completed to date with three diamond drill rigs currently operating at the Central Tanami project.

Assay results received from two of the completed holes have all returned encouraging gold intervals including:
 
– 12.7 metres at 15.1 grams per tonne gold from 192.2m, including 2.3m at 46.1g/t gold;
 
– 3.2m at 41.4g/t gold from 208.6m; and
 
– 4.7m at 3.2g/t gold from 244m.

“Our current drill program continues to provide a steady stream of outstanding high grade intersections and once again validates our decision to acquire the Central Tanami Project,” Tanami Gold managing director Graeme Sloan said in the company’s ASX announcement.

These assay results, combined with seven of the last ten holes drilled containing visible gold, have buoyed Tanami’s belief in the Groundrush orebody.

Tanami said is Groundrush is demonstrating potential to become a major gold system with capacity to underpin long term production at the Central Tanami project.

The company added that consistency of the drilling intersecting the main zone of mineralisation and the identification of new flat zones of mineralisation provides further evidence of a mineralised system that will support its transition to a mid-tier gold producer.

“Tanami is committed to fast-tracking development and production at Central Tanami (subject to the successful completion of the Central Tanami Feasibility Study) to complement our established operation at Western Tanami,” Sloan said.

“Despite having released an updated Resource statement in February this year, the consistent flow of results from Central Tanami since then, should enable the company to provide a further update later this year in line with completion of the Central Tanami Feasibility Study.”

Tanami has also been able to report down hole interceptions from recent Resource and infill drilling programs at its Western Tanami Coyote underground operations.

These intersections include:

0.4m at 460.1g/t gold from 25.0m;

0.3m at 1,386g/t gold from 31.5m;
0.3m at 81.3g/t gold from 30.3m; and
0.3m at 15g/t Au from 42.8m.