Tanami Gold reports 60% rise in gold at Australian Groundrush deposit


Gold

Australian gold producer Tanami Gold has reported an increase in its mineral resource estimates at the Groundrush Deposit at the Central Tanami Project in North Australia.

Measured and indicated mineral resource increased considerably by 60% to 460,000oz at a grade of 6.72Mt @ 4.8g/t of gold compared to 287,000oz in September 2012.

Resource estimation also demonstrated a significant increase in the grade from the previous 4.5g/t Au.

Independent consultant Optiro carried out the resource estimation, which will now enable Tanami Gold to develop a mining reserve that is complaint with the provisions of the Joint Ore Reserves Committee.

Tanami Gold said in a statement that the results further strengthen the economic potential of the Central Tanami Project, which the company plans to incorporate into the project's Definitive Feasibility Study (DFS).

Tanami acting chief executive officer Peter Cordin said, "The Groundrush Deposit remains open in multiple directions with the company's geologists confident of further resource growth.

"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," added Cordin.


Image: Tanami Gold has reported an increase in its gold resources.