Tanami Gold updates Groundrush Resources

THE BOURE WHISPERER: Tanami Gold has announced an increase in the Mineral Resource estimate for the Groundrush deposit, which is part of the company’s 100 per cent-owned Central Tanami project, located in the Northern Territory.

A new Mineral Resource estimate of 5.1 million tonnes at 4.5 grams per tonne gold for 742,900 ounces of gold has been completed for the Groundrush deposit.

According to Tanami Gold the Resource upgrade has resulted in a 39 per cent increase in contained ounces as well as increasing the company’s confidence in the mineralisation outlined in an estimate the company released in October 2011.

 

Groundrush schematic long section as at 5 June 2012. Source: Company announcement

 

“This is a very pleasing result, and clearly validates our strong view that Groundrush is a large mineralised system, which will continue to deliver increases in gold Resources as our drill programs continue to test down plunge and down dip extensions,” Tanami Gold deputy chairman Denis Waddell said in the company’s announcement to the Australian Securities Exchange.

“This interim Resource upgrade further demonstrates the potential to rapidly increase the Groundrush Resource.”

Tanami said although drilling at Groundrush is set to continue indefinitely, the current phase of infill and extensional drilling the company is currently undertaking is expected to be completed by December 2012.

It anticipates this will enable completion of a Stage 1 Central Tanami project Feasibility Study by April 2013.

There are still outstanding recent significant step-out drilling intersections (with visible gold present) the company has encountered deeper in the Groundrush mineralised system yet to be included in the Groundrush Resource.

 “A significant proportion of the recent drilling was aimed at increasing the geological confidence level and upgrading Inferred Resources to the Indicated category,” Waddell added.

“We have been successful in this regard which is an important step in delineating mining Reserves and designing the mine plan necessary for completion of the Feasibility Study.

“We will continue to strike a balance between growing the Resource base through step-out drilling and Resource/Reserve upgrade drilling.

“We are very confident the Groundrush deposit will underpin the successful development of a multi-deposit Central Tanami project.”