Tanami expands Groundrush
THE DRILL SERGEANT: Gold producer Tanami Gold continues to expand the Groundrush deposit at its 100%-owned Central Tanami Project in the Northern Territory.
“The Groundrush deposit continues to exhibit all the hallmarks of being a very extensive gold system with the main ore zone now extending more than 700 metres, two footwall zones extending more than 200 metres, all of which remain open, and indications of repeat structures at depth,” Tanami Gold managing director Graeme Sloan said in the company’s announcement to the Australian Securities Exchange.
“When you combine the exploration potential surrounding the Groundrush deposit, including the Ripcord prospect, you can see why we rate the Central Tanami project so highly as a long term production centre and the vehicle to transform Tanami to a mid-tier gold producer.”
Assay results received from the recent drilling have all returned strong gold intervals including:
– 15.4 metres at 5.3 grams per tonne gold from 261.0 metres;
– 5.0m at 7.8 g/t gold from 312.0m;
– 4.1m at 8.0 g/t gold from 307.3m;
– 6.4m at 5.2 g/t gold from 331.5m; and
– 19.6m at 3.0g/t gold from 289.5 including 3.5m at 7.1g/t gold from 294.5m.
Tanami said visible gold had been logged in six of the remaining fifteen holes that are still awaiting assays.
An in-pit diamond drill program has also tested a small section of a secondary zone of mineralisation referred to as the High Grade Vein Lode.
Results from the initial drill program to test the High Grade Vein Lode include:
– 1.0m at 32.9 g/t gold from 9.0m;
– 2.5m at 5.6 g/t gold from 63.1m; and
– 0.3m at 15.5 g/t gold from 88.9m.
Tanami has now completed a total of 38 holes at Groundrush, however, only half the assays have been received for the holes drilled to date.
The company cited an industry-wide backlog of samples in offsite contract laboratories as a reason why assays were still to come in, although it did say it expects this situation to improve in the short term.
The company’s drilling focus is now set to shift to its southern tenements to test additional targets until all outstanding assays from Groundrush are received and assessed.
The company said it will carry out a follow up drill program Groundrush based on the assays results it receives.
“The consistency of the drilling intersecting the main zone of mineralisation and the identification of a series of flat high grade zones of(previously reported) mineralisation, provides further evidence that Groundrush is a mineralised system which clearly has the potential to support the company’s transition into the ranks of mid-tier gold producers,” Tanami said.