Tanami continues Groundrush gold rush

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THE DRILL SERGEANT: Australian gold producer Tanami Gold has continued its golden exploration run at the company’s 100 per cent-owned Groundrush deposit, which forms part of the Central Tanami project.

The ongoing Resource upgrade drilling program defined further wide zones of high-grade mineralisation in multiple holes.

 

Groundrush schematic longsection. Source: Company announcement

 

Recent results include:

–    30.1 metres at 9.0 grams per tonne gold, including 5.6 metres at 21.9 grams per tonne gold and 10.4 metres at 12.6 grams per tonne gold;

–    31.7m at 4.7g/t gold;

–    5.1m at 21.7g/t gold;

–    16.0m at 3.9g/t gold;

–    9.2m at 4.5g/t gold;

–    3m at 17.6g/t gold;

–    24.0m at 3.0g/t gold, including 11.5m at 4.2g/t gold; and

–    4.9m at 5.5g/t gold.

Tanami also received initial results from drilling undertaken at the Groundrush South High Grade Vein:

–    1.0m at 38.8g/t gold; and

–    1.0m at 16.3g/t gold.

“It is extremely encouraging that the ongoing extensional and infill drill programs consistently confirm the width and grade of our Resource model,” Tanami Gold deputy chairman Denis Waddell said in the company’s announcement to the Australian Securities Exchange.

“We are very confident of delivering a robust and compelling investment case when the Central Tanami Project Definitive Feasibility Study is completed in April 2013.

“The continued and consistent discovery and delineation of additional high grade Resources close to surface and at depth reinforces the quality of the Groundrush mineralised system and its potential to deliver increasing Resources and Reserves.

“Groundrush has an exceptionally strong historical production record, previously producing 610,000 ounces in three years.

“Based on the consistent and strong drill results returned during the past 15 months, we are confident that this strong production record will continue once we re-establish mining operations.”

Tanami has been conducting the Groundrush Resource upgrade drill program since June 2012.

The company said its key objective is to advance a significant portion of the Mineral Resource to an Indicated and Measured status with close spaced drilling.

The purpose of the company’s current p program is to provide adequate Resource confidence for mine design and planning, which it has scheduled for completion towards the end of 2012.