Tanami Gold increases Groundrush Mineral Resource estimate

THE BOURSE WHISPERER: Australian gold producer Tanami Gold (ASX: TAM) has taken delivery of a new Mineral Resource estimate for the Groundrush deposit totalling 1.04 million ounces of gold.

The company said the estimate will be incorporated into the Central Tanami project Definitive Feasibility Study.

Tanami said the increase in the Measured and Indicated Mineral Resource to 460,000 ounces of gold represented a 60 per cent increase from the 287,000 ounces it announced in a Resource update it released to the market in the September.

The company expects the Measured and Indicated Mineral Resource will form the basis of a JORC-compliant Mining Reserve it is currently developing as its mining model, mine planning and scheduling evolves.

 

Groundrush Deposit – 3D Mineral Resource block model as at 31 December 2012. Source: Company announcement

 

Tanami considers the increase in the grade to 4.8 grams per tonne gold, up from the September 2012 number of 4.5g/t gold, to have potential to add to the economics of the Central Tanami project.

The Measured and Indicated Mineral Resource grade has increased to an average 4.8g/t gold, up from an average of 4.3g/t gold.

“This update delivers a number of key fundamentals for the Central Tanami project DFS,” Tanami Gold acting chief executive officer Peter Cordin said in the company’s announcement to the Australian Securities Exchange.

He outlined these to be:

–    An independently verified Mineral Resource;

–    A substantial increase in the Measured and Indicated Mineral Resource which will form the basis of a Mining Reserve; and

–    A significant increase in the Mineral Resource grade.

“The Groundrush deposit remains open in multiple directions with the company’s geologists confident of further Resource growth,” Cordin continued.

“The results of a number of holes drilled outside this Mineral Resource boundary, prior to the suspension of drilling with the oncoming wet season are awaited and are expected to return favourable results.”