Australian gold producer Tanami Gold NL (TAM) is pleased to report a further substantial increase in its gold Resources, with total Measured, Indicated and Inferred Mineral Resources increasing to 21.3 million tonnes grading 3.0g/t for 2.03 million ounces of gold.
The latest Resource increase follows a 40% increase in the Mineral Resource at the Company’s 100%-owned Central Tanami Project (“CTP”) in the Northern Territory, providing additional impetus to the Company’s plans to restart production at the CTP.
The CTP is expected to form a second substantial production hub alongside the Company’s existing 50,000oz per annum Western Tanami Operations, which are currently undergoing a significant expansion.
The updated CTP Resource estimate was completed for mineralisation contained within four of the six CTP Mineral Leases and has resulted in a total Measured, Indicated and Inferred Resource of 18.2 million tonnes grading 2.5g/t for 1.5 million ounces of gold (see Table 2). Within the total CTP Resource, 1.01 million ounces or 75% is classified as Measured or Indicated.
The new CTP Resource is a 40% increase over the previous Resource estimate completed in April 2010 which totalled 11.7 million tonnes grading 2.8g/t for 1.1 million ounces of gold .
The Resource increase follows seven months of intensive Reverse Circulation and Diamond Drilling at nine prospects within the CTP tenements and a re-estimation of gold Resources at Central Tanami. As a result of the latest upgrade, the Company’s gold Resource has increased by over 300% since June 2009 from 0.5Moz to 2.03Moz (see Figure 1), at a cost of less than $23 per Resource ounce reflecting a combination of exploration and drilling success and the acquisition of the CTP project.
Tanami Gold’s Managing Director, Mr Graeme Sloan, said that with the release of the updated Central and Western Tanami Mineral Resource, the Company would now focus on completing the Feasibility Study on the re-commencement of gold production from the CTP – which includes a 1.2Mtpa treatment facility, extensive infrastructure and over 2,000km of highly prospective tenements.