Tanami continues good news from Groundrush

THE DRILL SERGEANT: Australian gold producer Tanami Gold has received more results from an ongoing Resource extensional drilling program at its 100%-owned Central Tanami project in the Northern Territory.

“Since drilling commenced in April 2011, the company has seen a consistent flow of outstanding results from the Groundrush drilling,” Tanami Gold managing director Graeme Sloan said in the company’s announcement to the Australian Securities Exchange.

“When you add both historic and our recent drilling, we have done little more than scratch the surface of the deposit.

“To date we have only tested an area approximately 700 metres along strike and just under 100 metres below the base of the existing pit, or approximately 250 metres to 300 metres below surface.”

According to Tanami Gold the Groundrush deposit consists of a main north plunging zone of mineralisation, two footwall zones of mineralisation similar in tenor to the main zone and at least three shallow dipping high grade zones of mineralisation.

The recent drilling has also confirmed for the company the emergence of a thinner zone of gold mineralisation near to or at the footwall contact between the host dolerite and the footwall sediment package.

Tanami has only tested less than half of the 1.5 kilometre pit length to date, most of which has been done to a relatively shallow depth.

However, the company is confident potential exists to increase Resources and for repeat zones of mineralisation at depth and along strike.

Tanami remains on schedule to provide an updated Resource Statement later this year to coincide with completion of the Central Tanami project Feasibility Study.

Recent assay results have returned gold intervals including:

– 18.0 metres at 8.0 grams per tonne gold from 289.9m;
 
– 10.1m at 9.1 g/t gold from 258.5m;

– 2.7m at 59.6 g/t gold from 183.7m;

– 4.9m at 6.0 g/t gold from 301.0m, (footwall lode);

– 0.4m at 220.0 g/t gold from 323.3m;

– 2.4m at 6.8 g/t gold from 325.0m;

– 8.8m at 2.5 g/t gold from 363.0m;

– 12.0m at 4.0 g/t gold from 251.4m;

– 0.7m at 50.7 g/t gold from 251.3;

– 5.3m at 3.9 g/t gold from 337.0m, (footwall lode); and

– 0.7m at 42.7 g/t gold from 209.3m.

“Given the extremely high success rate of drilling to date, multiple zones of mineralisation identified during this early phase of drilling, excellent gold recoveries including a very high gravity component, and the clear potential for this system to continue at depth and along strike, the Groundrush deposit has the potential to increase significantly and to underpin the company’s transition into the ranks of mid-tier gold producers,” Sloane said

Tanami has now completed the third phase of diamond drilling at Groundrush having drilled a total of 38 holes since April and a number of assays from this drilling still remain outstanding.

The company is currently planning the fourth phase of drilling and will have the program finalised when all outstanding assays from Groundrush are received and assessed.