Tanami Gold announces 100,000 ounce resource at Coyote

THE DRILL SERGEANT: Tanami Gold (ASX: TAM) has announced a Maiden Resource Estimate of 122,000 tonnes at a grade of 25.2 grams per tonne gold for 100,000 ounces of gold for the Kavanagh mineralisation at the company’s operating Coyote gold mine in Western Australia.

The estimate follows a drilling campaign conducted by Tanami over the last several months, which has defined mineralisation within two main lodes – the K1 and K2 lodes – which are folded over an east-west striking regional anticline.

Intercepts from the recent drilling include:

–    1.3 metres at 53.6 grams per tonne gold;

–    0.3m at 151.4g/t gold; and

–    1m at 27.1g/t gold.

Tanami explained these lodes have been defined over a strike of 300 metres and height of 100 metres to date and remain open in multiple directions.

 

Coyote schematic cross section. Source: Company announcement

 

“This Maiden Resource is pleasing as it demonstrates the potential for the Kavanagh system to deliver significant Resource ounces at good grade,” Tanami Gold acting chief executive officer Peter Cordin said in the company’s announcement to the Australian Securities Exchange.

“The Kavanagh mineralisation is open in multiple directions and therefore the potential to grow the Resource remains strong.

“Importantly, the Kavanagh Resource has a strike length of 300 metres with a total defined strike length for the Kavanagh Target Area of over 600 metres.

“The depth of the system is yet to be defined.

“The original exploration target remains valid and the company continues to drill for additional ounces.

“Outside of the exploration effort, a project team is assessing the technical and financial aspects of any future mining event which will be reviewed by the Board when complete.”